Commingling Application

Dear Doug,

Comingling means that production of many wells are run through common facilities.

The short answer is that it is an economy saving matter on the part of the field operator. Typically this occurs when production does not necessarily support separate separators, heaters, dewatering systems, etc and economies of scale can occur.

The effect to the mineral owner is that fields can now be produced long past the economic life of a single well, due to the improved field economics. You will get more money this way.

Continuous metering is not universal in nature. Texas, for example, requires semi-annual metering tests. To me, that induces error because of a small sample size over a period of time vs a continuous metering system. Louisiana is ahead of he curve in this matter, in my opinion.

Best,

Buddy Cotten