Grisham-State Unit Agreement


#1

I am in a Unit Agreement for the Development and Operation of the Grisham-State Unit in Reeves County Tx. I have received two checks for $4. Does anyone know what’s going on in this unit agreement with Cimarex? My section is 46 Block 57. It seems that my land can be held in this unit agreement with no end date? Thank you


#2

I moved this question over to Reeves County so local folks can answer.


#3

I also own an interest in this section. The GLO allowed Cimarex to create a very large development unit that requires a certain number of wells to be drilled each year through a development plan that is reviewed annually. For 2018 they were to drill 10 wells. To date, they have been drilling north of our section. The development unit effectively extends all the leases put into it until the unit is fully developed or revoked. The payments you mentioned are delay rentals provided for in your lease. Probably only $1/acre times your net acres in the section. Hope this helps.