I am curious if anyone has any experience with the following. I have some producing mineral interest in Howard County, TX. (All of Section 14, Save and Except the W/2 NW/4, Block 32, T-1-S, T&P RR Co. Survey,). I signed a lease on this interest about 10 years ago and there are several vertical wells that are producing. I recently received a document from the operator that is titled “Ratification & Consent to Designation of Pooled Unit.” As best as I can tell, they intend to drill a horizontal well. My concern is that perhaps they are intending to drill to a depth(s) that is not currently leased. The letter’s tone is very much “hey, just sign this and send it back, thanks.” I am obviously not going to sign the document until I understand it better. I also realize that without seeing my executed lease the exact ramifications of signing this are unknown. Really, I am just hoping to gain some more knowledge on what they are asking. The operator is High Peak Energy Holdings and the Pooled Units are designated as “Click-Chevron 14-11 Units A through D.”
D. Rolf Hill
Go on TexasFile or another site to search for the recorded lease and then purchase and download. No free sites to download and most charge $1 per page. It looks like you signed a lease in 2012 with Tall City and then signed an amendment in 2015 with Diamondback. As a general rule, you should never sign any legal document without keeping a copy. It can be very difficult to obtain documents from some companies if the document is not recorded in full.
@TennisDaze of course I have a copy of my lease and lease extension. My question is about the notification I just received from the operator, not about my lease terms.
My only mention of my lease in my post was to acknowledge in advance that the responder to my message would not know the terms of my lease.
They appear to have permitted 4 horizontal wells with take points in Section 14 and Section 11. It could be that the proposed units are in conflict with your current lease, perhaps because of size or other provisions (depth) which could allow you to claim a breach and/or require a new lease if they proceeded without getting you to agree.
I have had this same scenario occur several times. In two cases, in exchange for us agreeing to “Consent,” we negotiated for an increase in our royalty rate and/or a better “no cost” provision or both.
Our Oil & Gas Attorney made us lots of money. Well worth the fee.
@George_D_Cato Thank you. This is very helpful information and advice. Thank you.
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