Spacing units, sections of land, and confidential status

General Mineral Rights Discussion
#1

I have few questions:

Currently, my portion of lands spacing unit consists of two sections. The other section has a well in confidential status. Does that mean that if the well is productive, I will receive a portion of the royalties from this well?

And lastly, what percentage of wells in confidential status become producing wells, and how long afterward from being removed from confidential status do they become productive?

#2
In regards to your first question, I suspect you are correct in that your tract of minerals are not within the unit spacing of the well. There are occasion when royalties are placed in suspense awaiting the royalty owner to come forth to claim such but if you are certain there has always been accurate contact information on file at the recorders office then I doubt this is the case. If you want to tell me the legals of your tract I will check and let you know.
In regards to your second question, if your tract is inclusive in the unit of the well on confidential status which is as I suspect a 1280 spaced Bakken well then yes you will receive royalties if the operator has you as a royalty owner, it will depend on the unit spacing of the well. If you want I will check for you and let you know.
In regards to your third question, it depends on the county and formation but in general it is over 90% at this time as most wells are Bakken wells in proven areas. The only major variables on Bakken wells is the production rate, how long it will produce and the decline rate. Most all of the wells are generally producing 4 to 5 months before coming off confidential status.
Tim Metz
#3

Thank you Tim.

I had no reason to question the previous well spacing arrangement. I just didn't know that spacing units were subject to change.

BJ

#4

Your welcome if I helped you at all. The first well you mentioned is probably 320 or 160 acre spacing in your section just not within your tract, producing out of the Red River or other formation and the new well is probably 1280 into the Bakken. If you ever need someone to look anything up for you I'd be happy to help you out, it wouldn't take but a few minutes to look at the spacing.

Tim Metz

#5