Can Devon drill under our property without our consent

[Rick_Carter]

We have been in a Devon unit totaling 87 acres for several years. We received a notice from Devon that an allocation well (also a Devon well) was drilled on another property (a 297 acre lease), resulting in their lateral lines crossing onto our property. The lease is subject to a production sharing agreement which provides for a bird’s eye calculation methodology for allocated production. They are only paying us for the footage of lateral length that crosses our property and not including us in the total 297 acre unit. They have sent new division orders for us to sign.

Is this legal? Can they do this without our approval?

[TennisDaze]

Answer depends on the state where the wells are located. Also, are you talking about unit which contains 87 acres (vertical well) or a larger unit in which you own minerals under one tract of 87 acres? Is your lease subject to a DPU (Declaration of Pooled Unit) or a production sharing agreement? These are very different legal instruments.