Ken G.
I appreaciate your response, and I understand the greater good that is served by unitization and pooling. Let me ask you this. There is an old well on my family land in the Danforth Hills formation. It never produced anything. However, less than a mile away on neighboring property there is another well in the smae formation that has been producing significantly for years, and is still producing. How come we were not pooled and compensated?
Jason
Ken G. said:
Jason,
You can't expect to find a lease without a unitization or pooling clause, unless you own 100% of the minerals in a whole lot of acreage. Your land will be combined with other lands because a well drains a lot of acreage and all mineral owners in that drainage area have a right to be paid for their share of the minerals that are extracted.
Some areas of Moffat County are just wildcat areas, where the risks are large and so are the costs of exploration. If you are in such an area, be happy that someone is willing to take the risk, and possibly spend millions of dollars, with no guarantee of success, and that you have a chance of receiving a nice royalty, if they are successful. Royalties from a good Moffat County well can be paid for decades.
Ken G