When this happens and they begin in 27 and go thru 22, what happens to the royalties?
Take your 13.5 acres and divide by 1280. That is your interest in the well. Then if your are leased, be sure to take out the %. If your are leased at 16% take the number times .84. That will be the number to calculate your share. Assuming it is a cost free royalty.
Kevin,
From the looks of her profile, she has Oklahoma properties. Oklahoma does not have an actual 1280 spacing. The have two 640 acre units served by the same lateral. So the footage on the lateral will determine what each unit shares. Then your calculation will determine the owners share of the unit.
This article explains it far better than my attempt at it
http://www.iogcc.state.ok.us/Websites/iogcc/images/2011BuffaloPresentations/LegalReg-Wrotenbery2.pdf
Deborah,
What is the rest of the legal description? The township and the range are important in locating the spacing orders.
Sorry about that.. I assumed it was a 1280. Thanks Rick.
It sure would make the calculations easier!!
Kevin said:
Sorry about that.. I assumed it was a 1280. Thanks Rick.
Debrah
This must be the well you are talking about. They started drilling in the last week.
http://imaging.occeweb.com/OG/Well%20Records/1DD1AE18.pdf
Currently they have it dividing the production 50-50 between section 22 and section 27. Once the well is complete, they will determine the final split.
This what is looks like http://imaging.occeweb.com/AP/CaseFiles/OCC4387552.PDF
Yes this is me section 27,21n, 3w.