We have mineral rights in section 3 (6n-7w) and not section 2, so I’ve been questioning the well Dunn 5-2H with the oil company. Does this sound appropriate?
From otc database: Dunn 5-2H shows surface and bottom hole in section 2 (6n-7w). Leasing and spacing list all of section 3.
Oil company says that the product is being sent to Central Delivery Point in section 3, thus explains the leasing section 3 being listed. But all product is from section 2 and thus all royalties are for section 2.
That is correct. You only get paid royalties on the wells that have perforations in your section. Section 3 has the Claiborne 4-3H well which as a small portion of perfs in section 10 and the majority in section 3. You also have the Claiborne 5-3H which is completely in section 3. The Dunn 4-2H and 5-2H are perforated completely within section 2.