Horizontal Drilling

Can a well be drilled on one section that drills into the neighboring section? If it can, do the people who own the mineral rights in both sections get paid if there is production? Or a better question is: if production is found in the section you hold mineral rights in, but it was drilled from a section that you don't have mineral rights in, would you get paid from the production?

A well can be drilled from (surface hole-SHL) a location with the perforations in another location (bottom hole-BHL).

All payments will go to the mineral owners within the spacing orders of that well. The well will only produce from the perforations and those will be restricted to the area included in the spacing orders. The surface owner at the SHL will also be due damages.

There are quite a few combinations.

Multi Section well. SHL in section 31. Well bore goes north from there into Section 30 and 19. Perforations in 30 and 19. If it is based on the typical 640 acre spacing orders, all owners in 30 and 19 will share the production equally based on the number of net mineral acres owned. Mineral owners in 31 get nothing from the production. Surface owner in 31 has to agree to the well being on his property and will be compensated accordingly.

Single section well. SHL in section 31. Well bore goes north from there into Section 30. Perforations in 30. If it is based on the typical 640 acre spacing orders, all owners in 30 will share the production equally based on the number of net mineral acres owned. Mineral owners in 31 get nothing from the production. Surface owner in 31 has to agree to the well being on his property and will be compensated accordingly.

Multi Section well. SHL in section 30. Well bore goes north from there into Section 30 and 19. Perforations in 30 and 19. If it is based on the typical 640 acre spacing orders, all owners in 30 and 19 will share the production equally based on the number of net mineral acres owned. Surface owner in 30 will be compensated accordingly for damages.

Refer here if the section numbers sound confusing. http://jay.law.ou.edu/faculty/Hampton/Mineral%20Title%20Examination/Spring%202012/Legal%20Land%20Descriptions%20in%20OK_Kletke.pdf

There are also non typical spacings, but those are rarer.

All of above is based on Oklahoma

That is going to be pretty difficult.

The well information is here:

http://occpermit.com/wellbrowse/

The hard part is determining the rest of the info. Production and from from.

What is the full description? Something like Sec 08 -T 01N-R 05W

Nothing for the last 10 years.

There is the new well you know about, but no production records yet.