When an operator is drilling horizontal wells is it normal to sign an amended oil and gas division order Allocation Wells, that gives you royalties based off the length of lateral track that traverses the land you own? For example, if the total productive length of the well is 10,000 feet and the productive lateral length for your track is 2,000 feet, you would get paid off the 2,000 feet. Does signing such an order hurt potential sale price for the mineral rights, or is it such standard practice that it likely would not affect the sales price?
Welcome to the forum. Allocation wells are common in TX. Standard procedure. You don’t get paid if you don’t sign the Division Order (if the decimal is correct.)