Resign Division Orders

In December 2019 I signed Colgate Energy Division Orders. Now they are asking me to resign at a smaller percentage. Has anybody been given the same option? Don’t understand.

Colgate has drilled some wells which were pooled under MIPA and mineral owners had a choice of higher DOI in single well under narrow acreage or lower DOI under larger unit acreage with anticipation of additional wells. If you post the name and other well information, you can get more specific answers.

1st Division Orders Wells: SHADRACH 68 Unit 1H & SHADRACH 68 Unit 2H 2nd Division Orders Wells: SHADMOCANT 221H

Here’s a link to the plat of the second unit you referred to, which is actually called the Shadrach Moses Cantaloupe. It shows that unit formed under the MIPA includes 1,833 acres and that 647.9 acres of that total came from the original Shadrach unit that your wells IH and 2H are in.

http://webapps.rrc.texas.gov/dpimages/img/4800000-4899999//PR0004863218_0001.pdf

Since those first two wells you mentioned are in a separate proration unit it seems logical your division of interest in the SMC 221H well would be different but how that division is calculated may be the question.

I’m betting TennisDaze will be able to explain that.

Shadrach 68 Unit wells were drilled under a MIPA unit and the decimals will be the same. The Shadmocant 221H well is an allocation well which has been drilled on the unit lines between the Shadrach Unit, the Cantaloupe Unit and the Moses Unit. You can view the plat on the RRC website under the permits. The correct full permit name for this well is Shadrach Moses Cantaloupe 221H - API 42-389-38949. The production will be shared among the three units, with very little going to Moses unit as very little of the wellbore is along that unit line. Based on the plat, I would expect your DOI to be slightly less than 1/2 of the other two wells. This will not change your original DOI in the Shadrach wells. Completion report as a gas well was filed on May 4 and the well has not yet been assigned an RRC Gas Lease number. IP is 1100 Bbl/day and 4116 Mcf/day. You can pull this also on the RRC website for your records. You should also receive division orders for three more Shadrach 68 Unit wells - Colgate has filed completion reports for Shadrach 68 332H; Shadrach 68 223H and Shadrach 68 324H wells. Those will be the same decimal as the 1H and 2H.

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Thank you gentlemen. This makes a lot of sense for a novice like me. Again I appreciate your comments.