Interesting item on the milliondollarblog.com about multiple wells on a spacing unit.
This is evidently being contemplated by Continental Resources.
14 and 34 were the numbers mentioned. What effect does this have on an unsigned mineral rights owner?
I would assume that the pooling and penalty will apply to each well. Does anyone have a different view?
Mike
Mike they have been drilling multiple wells from a single pad for a few years now. Sometimes all the wellbores from a pad go into the same well spacing, sometimes the wellbores go into two different spacings. There is also offsite drilling where the wellhead is not in the spacing that the wellbore is draining, which has also gone on for years. The same rules apply as before, the wellhead doesn't matter as far as royalty goes, it's the spacing that the wellbore drains that gets paid, same as always. It has no effect whatsoever on the unsigned mineral rights owner. The rules have not changed in that respect. I hope this helps.