This situation demonstrates the importance of responding to operators and well proposals, especially if your minerals are not under lease. Then deciding whether to participate or to protest the well. As a general rule, the wellbore needs to cross a tract for the mineral owners to receive minerals. However, RRC rules require the horizontal wellbore to be located at least 330 feet from the nearest lease line. (As opposed to the end or toe of the wellbore.) This is why the operator proposed the box around the 2H wellbore as a basis for royalty payments. Otherwise the mineral owner could have protested the location. By doing nothing, the mineral owner cannot now protest the well. The mineral owner needs to get in pay, but whether or not he can collect back royalties is not clear. The attorney can provide the best advice and help get this resolved with the oil company.
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