Unit designations for multiple depths


#1

In Texas, can different depth plays, (James Lime vs Haynesville) for example, have different unit designations? Thanks.
Bill


#2

Yes. In fact, they must, in order to hold the leases listed in the Designation of Pooled Unit for as long as each, separate formation continues to produce. Bear in mind that if any of the leases in the Exhibit A - Leases contain a horizontal Pugh (usually called a depth Pugh by owners), those leases will only be held past their primary term as to the depths and formation stated in the DOPU. Other depths not HBP at the end of the primary term must be released of record. These leases will be HBP by at least these two separate formations.