Royalty?

Colorado Mineral Rights Weld County, CO
#1

The royalty division on Niobara wells I am seeing discussed here appears to be different from the division what we are getting on new Niobara wells.

This is a example off one quarter section with 8 well heads.

On the older 4 vertical wells we get full royalty, they aren't Niobara yet.

We have 4 new Niobara cross drilled wells with well heads on the property.

One pays full royaly, two pay 1/2 royalty and one pays 1/4 royalty. This 1/4 royalty well terminates in a corner where 4 sections meet.

On adjoining quarters with different owners that each have at least 3 new cross drilled Niobara wells, we get a full royalty from one well on the quarter section to the east, 1/2 royalty on 2 wells on quarter section to the north and a 1/2 royalty to one well on quarter section the west.

All the above wells are on leases that were done 40 years ago, wondering if that makes a difference?

Anyone else getting these type of divisions?

#2

Your "new" Niobrara wells are Unitized on 640 acre spacing. So it depends on the"NET Mineral Acres" you own in each section, and that will determine the %.

For example: An old J or D sand well might be spaced on 160 (Full 12.5% ROY)...that same land might be in a Niobrara Unit...640 ac spacing for Horizontal...therefore 1/4th of 640 = 160

If you want discuss 303-667-1065

#3

Thanks Hunter, I think I was getting starting to get it figured out, and you confirmed what my my trend of thought was.

One more question, why is Niobrara on 640 spacing vs J and D? Is this new mineral law or does Niobrara layer flow different than say the J sand?

#4

Most Niobrara "Oil" wells are not economic vertically, therefore they drill them down to the Niobrara, then "turn" horizontally for about 5000Ft or 1 Mile. Since a 640ac Section is one square mile all the Mineral Owners in that Section share in the producion.

Download the map viewer at http://cogcc.state.co.us/infosys/maps/gismain.cfm

Once the map is loaded, zoom to Weld County, then Click "Directional Actual" and "Directional Planned" and you will see what I mean.

#5

so it doesnt matter where the actual horizontal well is located (starts or ends in a section) everone will get paid what their lease agreement says?

Hunter Burdick said:

Most Niobrara "Oil" wells are not economic vertically, therefore they drill them down to the Niobrara, then "turn" horizontally for about 5000Ft or 1 Mile. Since a 640ac Section is one square mile all the Mineral Owners in that Section share in the producion.

Download the map viewer at http://cogcc.state.co.us/infosys/maps/gismain.cfm

Once the map is loaded, zoom to Weld County, then Click "Directional Actual" and "Directional Planned" and you will see what I mean.

#6

Yes, and as far as I can tell its figured this way. Assuming each 160 is owned by a different party the entire royalty would be divided by 4, then each party would get that 1/4th of the royalty based on their royalty %. Also remember its not paid to the same section # the parties are in, but the nearest sq mile, which in some cases may entail 4 different section #'s. It does not matter where the well head is, but is based on where it ends.

#7

Thank you gary so much for your help. i really want to understand how the horizontal wells are paid royalites. so i have a real life scenario to see if im getting this right.. one of my dads leases is 60w 10n section 15 E 1/2.

there is a horizontal (60w 10n 14) well ending 320 acres from my dads mineral property line so if im understanding right we could get paid for this well? just want to make sure before i tell my mom and dad. my dad is 76 now and his dad bought these mineral rights in 1935 and told him to never sell... he has gotten some royalties over the years but nothing huge.. family joke is (when we strike oil) lol... anyways its fun for him to be part of this weld co. explosion and me too! any your help is appreciated very much.. anyone else go ahead and answer too, i do appreciate it.. alot of info to understand for sure..

#8

Shannon, if you want to know for sure, I would call the oil company that controls the well. It should have sign at the well head with the name of the company and the well number.

#9

Hi, we are in oregon. so kind of have to rely on learning how to use the cogis maps and rules and regulations. i guess i could find the well # and such through cogis, but im betting they dont return general question phone calls. i am hoping that someone on this forum could help. i cant be the only one trying to learn all the ins and outs… thanks i do appreciate any help out there

Gary Norton said:

Shannon, if you want to know for sure, I would call the oil company that controls the well. It should have sign at the well head with the name of the company and the well number.
#10

It may be well Name - Slingo Ridge 13-14H. Company - EOG Resourses Inc. . Its the only I see well shown on 14

Sligo Ridge 13-14H, Wildcat Field, Eog Resources Inc, Weld County, Colorado, 10N-60W-14:

#11

yeah thats the well. i was just wondering if thats an example of being within 640 ac. spacing that my dad would get royalties for? his are on sec 15 east half. there are other mineral rights my dad owns some have several horizontal wells with in 640 acres of his mineral rights but in different sections. so just trying to figure it all out. probably confusing you more tho. lol

Gary Norton said:

It may be well Name - Slingo Ridge 13-14H. Company - EOG Resourses Inc. . Its the only I see well shown on 14

Sligo Ridge 13-14H, Wildcat Field, Eog Resources Inc, Weld County, Colorado, 10N-60W-14:

#12

From my experience I would say no, its in the SE corner of 14 and I would assume it would share with nearest other 3 Quarters. Being in the same section # doesn't matter I don't believe. I am no athority, we get paid on some wells I think we shouldn't and some we don't get paid on that seems we should.

But call EOG and verify.

#13

thanks for the help… i agree with the last statement for sure.

Gary Norton said:

From my experience I would say no, its in the SE corner of 14 and I would assume it would share with nearest other 3 Quarters. Being in the same section # doesn't matter I don't believe. I am no athority, we get paid on some wells I think we shouldn't and some we don't get paid on that seems we should.

But call EOG and verify.

#14