I don’t have the complete picture of an allocation well. If I understand this right, if we have 200 acres on a 1200-acre unit, our RI interest wouldn’t necessarily be 1/6. Does it depend on the location of the lateral? Thanks for any info or a yes or no.
https://www.energyandthelaw.com/wp-content/uploads/sites/320/2018/02/ALLOCATION-WELL-PRESENTATION-004.pdf. This might be useful reading. The allocation is based upon footage. The royalty is different and is usually 1/8th, 3/16ths, 1/5th, 1/4th, etc. The decimal interest (either DI or RI) is calculated using the different components.
Thanks for info, guess we can expect the shaft from Magnolia Oil and Gas. I saw where someone won a case in Karnes County against Railroad Commission claiming railroad had no legal right to grant allocation permit.
@dragon, Much more info is needed to help determine what you really have. While you say 200 acres of 1200 acres. That can mean many things. Is this surface acreage, minerals, or both? What does the title/deed say in the county records as far as your percentage of what? What part of the approx two sections is the 200 acres located S/2 N/2, NW/4 and so on? Where is it located, Block #, Section #, Township #, and State which it resides? So many variables that no one can answer your question with any meaning. Until those can be addressed, a reasonable answer is impossible. mk
It’s mineral acreage, and I was giving a hypothetical trying to understand allocation wells (which is a license to steal). They actually drilled a 1,187-acre well, and on the plat it listed all the tracts in Graff 2H (507 acres) of which Graff acreage is 212 acres in the 507-acre unit. So I was wondering why they would list all the tracts on the plat if they are allocating 5 acres out of the listed 507 acres. RI has nothing to do with how many acres they allocated on the unit, they did not allocate 5 acres based on my RI. If I understand correctly they base allocation on length of feet through a particular tract. But I have heard that even the footage through your tract isn’t always compatible with acreage allowed in the unit. My royalty only has to do with my payment based on percentage and acres in the tract, which plat stated 5 acres out of 507 listed.
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