Hello, Anyone else getting pooling info and lease offers for Grady, Section 33, 5N, 5W? Does anyone have more information on who operator may be? thanks!
Red Rocks Oil is the applicant the Well is Ghost Rider 1-33X4HS. We have been receiving leasing offers from a few companies.
thanks. Have you had any experience with Red Rocks?
Also can anyone give me a summary of the impact of the unitization clause in a lease for a mineral owner?
In Oklahoma, it has no impact on modern wells being drilled. Years ago, and in other states such as Texas, a lessee would make a unit by consolidating tracts to make a larger tract in which to drill on. The drilling of a well anywhere on the pooled/unitized tract held all leases as long as there was production in paying quantities.
In 1945 or so, Oklahoma passed a law allowing the corporation commission to create drilling and spacing units. The establishment of state drilling and spacing units supersedes any clause regarding pooling units.
99.999999% of all wells drilled in modern times are drilled in a spacing unit. Thus, the pooling clause has no significance. If there is a pooling application, there will be a spacing unit.
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Thank you Tim. Appreciate the great explanation!