Excluded from pool

Oil and Gas Leasing Help
1

Eagle Ford South Texas

After signing a 3 yr contract with a major player for the Eagle Ford (as my neighbors did), and watching the drilling and testing of a 5000' horizontal well on my adjacent neighbors property, I was amazed to have my lease dropped a few months ago.

Despite the contractual pool clauses such as "640 acres + 10%", "insufficient remaining acreage", "reasonably compact shape unbroken by any tract or tracts not included in the unit"...the leaser proceeded to eliminate my lease... which would have brought the pool near to the above " 640+10%" size and create a "square or rectangle" shaped pool as stated in the contract.

Acres included in the pool are the identical/equal to my acreage (not included) in distance from the well...(and blocking future horizontal drilling options). Other pooled acres of this strange shaped pool included are actually on the opposite sides of my property...as well as the top....(surrounded on 3 sides) with my non-leased gap under my property and in between.

The pool created did exactly what the contract stated it wouldnt, by creating a small area cut off and "insufficient remaining acreage" exists for another pool, smaller then original 640 acres.

My local atty involved seems uninterested.

Any directions? Recommendations? Advice..?

Texas Lawyers with this expertise...?

2

Might as well tell everyone how many acres you have and where the acres are so you can get better information.

3

125 acres in north Live Oak county

r w kennedy said:

Might as well tell everyone how many acres you have and where the acres are so you can get better information.

4

A boilerplate OGML will specify the language about 40/640 acres for vertical/horizontal wells, PLUS a 10% allowance. HOWEVER, that is a MAXIMUM amount. Almost no horizontal drilling unit for which I procured leases every approached the 640-acre maximum. So the Lessee is not obligated to create maximum-size units, and it does not appear they did anything wrong from the information presented. You might see how the well(s) produce on your neighbors' tracts, and if they are successful inquire whether or not the Lessee would be interested in creating another unit with YOUR tract in it. Can't hurt to ask.