I recieved 3 letters from the company that is drilling on my mineral right acres in richland co mt section 26 twn 21N range 59 E Arrowhead federal 1-26 well the first letter was asking MBOG for a permanent spacing unit the second letter from them was asking again MBOG for pooling of all the section which i think is 160 acres and the third letter was requesting permission to drill up to an additional four wells now my question is i signed a three year lease with this company "Slawson" approx one yr ago what does permanent ex mean does it mean until my lease is up in aprox 2 yrs or is it permanent? And the additional wells they are asking for does that mean i will get a % of each and every well they do drill and what the hell is pooling? I would appreciate any and all advice i have not been able to get in contact with them most likely due to their schedules and mine plus the time difference . Thank and god bless you all. Theresa
Theresa:
I believe it has become common practice for operators to make application for multiple well units. If you are leased to Slawson and they drill on your mineral acreage, you will be "held by production" no matter the number of additional wells that are drilled. The 160 acres must be your gross acres but each section is 640 acres and most drill on a 1280 spacing unit (2 sections). If your mineral interests is located in this spacing unit, you will recieve royalty from all wells in that unit. You must be in this unit if you are recieving these letters.
I am looking for the same answer myself. Own some mineral rights in Woodford Shale, more wells have been added to my spacing unit. The wells are listed as on my section-township and range excatly, but, I don't receive a dime for them. It was my understanding that any wells put on the section i would benefit from.
Dawn:
If these were horizontal wells, it is possible that the physical location of the well is within your spacing unit but the horizontal leg runs into a spacing unit other than yours. I have a well with this same senerio in Williams County, ND and the actual well is located on another spacing unit.
Dawn Brand said:
I am looking for the same answer myself. Own some mineral rights in Woodford Shale, more wells have been added to my spacing unit. The wells are listed as on my section-township and range excatly, but, I don't receive a dime for them. It was my understanding that any wells put on the section i would benefit from.
charles, thank you for the insight. I will ask the operator that question.
Thank you for all your input i guess now its just watch and wait. Best of luck to everyone. Theresa