640 Acre Spacing

How do this actually work?

See if this helps you, Bill.


Rick, for some reason I am still confused. Let's say xyz company drills a well in Stephens County Sec2 2N 4W and it is on 640 acre spacing do all mineral right owners in Sec2 get a royalty?

That is correct "IF" the spacing is within the boundaries of the that section. That is the most common thing to occur in the current environment.

This is a map of a well that is spaced on an irregular 640 acre spacing.

It covers a bit of 3 different sections.

The other thing you have to watch for. Many times the well's surface hole and bottom hole will be different. The SHL may be in 2-2N-4W and the BHL may be in 11-2N-4W. Since the perforations are located in 11-2N-4W and the product is coming from 11-2N-4W, mineral owners in 2-2N-4W will not get any revenue from the well.

If you are talking about the Kelley 1-2H completed in March, then yes, all owners within 2-2N-4W should get paid on it.

That helps a lot Rick....thanks so much

I just read Ricks reply and deleted mine. He does a much better job explaining it!