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Pecos Council approves production‑sharing agreement with Civitas Permian
Summary
Pecos City voted to enter a production‑sharing agreement with Civitas Permian Operating LLC to allocate royalties from five new wells on Sections 15 and 16 in Reeves County; city staff said the wells could begin producing this summer and revenue division orders could follow within 30–60 days.
Pecos City Council on Jan. 24 approved a production‑sharing agreement (PSA) with Civitas Permian Operating LLC that covers drilling five new wells crossing city lands in sections 15 and 16 of Reeves County.
The agreement sets an allocation method that divides royalty payments according to the proportion of each well lateral that lies in pooled units. City and company representatives said the contract formalizes how the city’s share will be calculated once the wells begin producing.
Jody Watkins, a representative of Civitas Permian Operating LLC, described…
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