Can anybody shed light on the request from Continental regarding their spacing application and Consent to the Formation of Horizontal Well Unit request? What is being asked, and is it important to submit response?
You do not have to respond to the OCC paperwork except for a pooling order. They are telling you what is about to happen in that section. I put the cases in numeric order and then in date order as further information comes in on them.
The operators must first get permission for spacing in a reservoir, then they apply for a horizontal well. You may not get it, but there is usually a case for Location Exception if the well is not in the center of the spacing. Then a Pooling case for those who are not leased, then the permit.
Thanks Martha, I was confused, bc the request came from Continental vis Jackfork Land, and it is unlike anything I have seen previously…
The OCC cases come from the attorneys for the operator. If you received a letter from Jackfork with about four options on it, ignore it. What it does tell you is that there is about to be a pooling and drilling. You can either lease with Continental or another third party or wait for the pooling. Do not ignore a pooling as you only have 20 calendar days in which to respond. Any draft lease from the operator will not be in the mineral owner’s favor and needs significant edits by a professional.