The question I have is this: Excluding potential future infill wells, if one well is initially permitted per unit, yet there are only two horizontal legs in two sections, are mineral owners compensated by percentage of ownership in that unit even though no legs exist on their sections? If that makes sense and you know the answer I would appreciate your input.
Vicki, generally speaking, the state of ND laid a grid over the western part of the state setting the well spacings for horizontal wells, If you are in a spacing that has part of the well bore of a horizontal well, you share in the production. I say generally speaking because I have seen some well bores that drilled at a slant that barely entered into the corner of a section and I doubt that everyone in that section or spacing shares in that well. I think the rule of thumb is if you have well bore in your section, you share production. Vertical wells have different rules and their spacing /pool can exist inside of a larger 1280 spacing and only those who have acres in the 40, 80,160 acre pool will share in the production of the verticle well. If you don't have well bore in your section you are not sharing in the production. I hope this helps.
You have been helpful so many times. We sincerely appreciate your knowledge and willingness to share it! Vicki
r w kennedy said:
Vicki, generally speaking, the state of ND laid a grid over the western part of the state setting the well spacings for horizontal wells, If you are in a spacing that has part of the well bore of a horizontal well, you share in the production. I say generally speaking because I have seen some well bores that drilled at a slant that barely entered into the corner of a section and I doubt that everyone in that section or spacing shares in that well. I think the rule of thumb is if you have well bore in your section, you share production. Vertical wells have different rules and their spacing /pool can exist inside of a larger 1280 spacing and only those who have acres in the 40, 80,160 acre pool will share in the production of the verticle well. If you don't have well bore in your section you are not sharing in the production. I hope this helps.