Horizontal Info For Wells Close to Our Property

General Mineral Rights Discussion
1

Any help here would be appreciated.......Our land is located in Robertson County,Texas with 320 surface acres and 100% mineral rights on 210 acres of the surface acreage. We had a two year lease with Encana that they opted to NOT renew, and it was subsequently picked up by Chesapeake last October for three years. A new horizontal rig began drilling exactly one mile to our South two weeks ago. A new pad is being built as I write this for yet another rig 1/8 of a mile South of our front gate. The Landman for Chesapeake has informed us that Encana "bought back" our lease from Chesapeake. What are the rules that govern horizontal drilling (and payout for adjoining acreage) and also why have we not received any paperwork regarding the potential sale of our lease with Chesapeake? My thanks in advance.......

Steve

2

Steve:

First, if you leased to Chesapeake, they have the right to sell or trade their existing leases to whomever without notifying the mineral owner. At least this is my understanding regarding this matter. If a well is planned on your surface area, the company drilling the well must contact the surface owner prior to building the location. You can always contact the Kilgore District Office of the RRC with your question regarding the rules which will govern this new well near your property as they will be able to review the drilling permit and advise you where you stand as a mineral owner.

3

Thank you Charles! I found out yesterday that Encana is indeed buying the lease from Chesapeake, it is just taking a while to file the courthouse (six weeks so far).