Michael Good point
Thanks for the details and good advice!
If you are leased in a particular section and then they decide to dig a new well in that same section [assuming 640 spacing] do they have to issue new/additional leases for that new well [in addition to the lease on the original well]?
Just curious!
Thanks!
Yes, it can be limited by the depth clause. That is why I put one in-so I can lease other zones that are not in the producing zone. Also the horizontal can be changed as well by the OCC. Either larger or smaller over time. I also put in a horizontal and vertical Pugh clause in my leases. Force Pooling does that for you. I have noticed that older FP orders only had one or two horizons listed. Now they are listing many more, so companies are trying to save themselves additional hearings by âpre-savingâ other zones. I have a feeling folks are going to start protesting that.
Pamela No
Received division orders for Mashburn 1H-33 today.
For the Mashburn 1H-33, If you go to the spacing request, there are 304 respondents, so there are about 300 possible recipients of royalties. A lot of them will have identical tracts. A tract is your net acres described in your mineral deed. They can be very irregular in shape and you can share the identical shape with lots of relatives, enemies, friends, etc. depending upon how many times the original gross mineral rights were sold, inherited, given as gifts, etc. Abstract companies would have a map of the individual tract shapes. That is what the company uses to help it do the title work to calculate your royalty check. If you have your description, you can usually map it out yourself and figure out your shape. If you have your deed, then you can figure out your shape and your net acres and hence your royalty interest. Then match it against the Division Order from the company.
The well itself is spaced over the entire section of 640 acres.
Is that what you needed?
Richard, does the first number jive with the number of acres you thought you had. If so maybe you had some you didnât know about. Divide the decimal of the larger by the acres you knew you had , This will give you the decimal per acre, then divide the smaller decimal by the decimal per acre. This should give you the number of acres covered by the smaller DO amount. Is the total of the two DOs more acres than you thought you had, If so if it were me I would sign both DOs and send them in, then call or email and ask where the difference came form, This way you start getting checks and they can straighten it out. If they are paying you too much they will take it back from future royalties. If you tell them now it will cause a bunch of confusion and it might put every thing in suspense. This way you start getting your check and it is up to them to make the corrections.
Yesterday my brother got a call from a landman representing Apache Drilling who said they want to go back into some old plugged wells of Continentalâs in Garvin sec. 08-2N-3W. They are sending a lease proposal. What I donât understand is how they can drill there as Triad is there with 640 acre spacing? I looked at the OCC website but didnât see any applications by Apache in that area. Anyone know what itâs all about?
The only wells in the block on the OCC list are the Union Texas Petroleum Reeves #1 which was in the Hart from 8650-8668 and was plugged back in 1967. Maybe this is the one they mean?? I agree with Mitchell. Check the paperwork.
Triad has the Floyd 1-8 permitted to the Hoxbar 5700â, Deese 7700â Dornick Hills Up 9000â, Morrow sand 9350â and Springer 9750â at 640 spacing. Current well.
Richard, do the two add up to the amount you were expecting?
Thanks Mitchell, Martha. I learn something new everyday! I will definitely post the details of the lease as soon as I see them.
So itâs possible for them to do this even though Triad is in there drilling new wells? In other words, more than one driller can be active inside a 640 acre drilling & spacing unit?
Do you have a copy of your mineral deed(s)? You may have two tracts. We have had that happen. If you only have one, you can call the company and ask them to explain it to you. It may take a while for them to respond.
Hutch, By doing as you instructed RI is increased by 1 acre. I received the first 6 months (4 mo.) check and then the D.O.'s later from Newfield. I will sign and return both D.O.'s as you suggest. Thank you.
They could be sending you a well head bore lease. This type lease is limited to the right to re-enter an existing borehole of named well. You should also have a depth clause, âfurther limited to rights from the surface to a depth of XXXXX feet below the surface.â Will be interested in how the lease proposal is worded.
Richard , did the check reflect the extra acre? Maybe you had one you didnât know about. Believe me if they overpaid they will get it back!
Richard, maybe that extra acre will cover the expenses on the other. Are you sure your lease didnât have a no expense clause. It would probably be an attachment to the lease like exhibit A? ClR âoverlookedâ mine.
Pamela & Martha, if the Reeves #1 well is their target, it only makes sense for them to target the Woodford. Common sense tells me that a company could take a plugged well at 8668 depth, be able to re-enter and start the turn for a horizontial well at a great cost saving to them vs drilling a new well without all the hassle. If they are successful, then we could see more plugged wells targeted, if they are in the right location. We have three such leases now which freed up the rest of the property for future leasing. Wellbore leases are not a normal lease between the MRO and the company. Apache could be going a different route to get involved in the play. Good Luck!!
They can both be there if they are spaced in different zones. Makes the roads a little crowded. Doesnât happen often anymore with the big 640 deep stuff. Maybe Apache is going for something shallow with small spacing to use new technology ORRRR they want to go to the deep Woodford. They seem to be creeping into the SCOOP. See what the paperwork says.
Richard, I agree about getting a second opinionâŚmaybe an oil & gas attorney can tell you. Unless you are a working interest owner I donât think some of those deductions should be coming out of your check. This isnât my strong point (havenât had enough of those checks to use as a comparison).