If a person does not lease and waits for pooling in 18-4-4 ( Garvin Co.) and the drilling permit is declined or denied, are you likely to wind up with nothing as far as lease money? My friend has a small acreage there, and I am a bit afraid of advising him. Thanks
The operator doesn’t usually go to pooling without planning to drill, but it does happen sometimes. If the pooling sends out orders, then the bonuses are supposed to be paid whether or not a well is actually permitted. I have gotten lucky a few times with multiple pooling bonuses because a well was not drilled in time. If I picked 1/4th royalty, there may not have been any bonus money which is fine with me. I prefer the higher royalty for a well that is drilled.
Marathon has filed for a multi-unit well with 19&30 nearby. That is encouraging. Rimrock and Casillas were jockeying for position in 18 back in 2017 and 18, but dismissed the well proceedings. Several companies were leasing in 18 a few years ago. Quite a few infill drilling cases are pending at the OCC for nearby sections.
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