I understand that this may be a simple question, but I was just trying to get a quick Yes/No after wading through pages of legal-ese from several google searches.
My family owns pooled mineral rights on +/- 300 acres in Zavala county. We currently have two wells on the land paying royalties, as well as another nearby well paying royalties for a small snippet at the corner of our property.
The oil company is preparing to drill two new wells, and my sister is afraid that the production from these new wells will not pay the family any royalties, because our acreage was already “assigned” to the currently producing wells.
Is it possible for the assigned acreage of the new wells to overlap with the old wells? Can the acreage allotted for multiple wells overlap?
I have been able to understand that each well has an “assigned acreage,” but I have not found a clear answer as to whether parts of the same acreage can be assigned to multiple wells… perhaps drilled at different depths?
Many thanks to anyone who can help me make sense of this. J.