We have minerals in an abstract that is currently owned by company A and are older vertical wells that we receive royalties. Company B decides to put in 2 new horizontal wells that will run through the same property but obviously deeper. We haven’t received a lease offer for these. We are listed on the pool P-12 forms. What should we do about this?
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You need to review your oil and gas lease to see what depths were included and whether there was a release of depths below the existing wells. Most old leases included all depths. Some have clause releasing depths below deepest depth drilled or below the producing formation. Others have no release clause and all depths will be held by the producing wells.
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Thanks for the clarification. That’s what I thought but wanted to ask to be sure.
Another question….since it’s a different operator, would I receive a different DO or would the payments just continue?
Be glad that they are at least going to drill two new wells. Good Luck to you Sir!
Thank you. I’m definitely glad but just want to make sure I understand everything. 
You will receive new DO for the new wells. If the horizontal wells are sharing or allocation wells drilled across your tract or unit and other unrelated tracts, then the DOI will not be the same.
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That is what I thought and now wait for the mail box money.