Our expired lease has 640 acres allowed / granted to pool or combine. The oil/gas company wants unlimited pooling and is unwilling to limit their pooling. Can anyone help explain if this is a good or bad thing for our property/ mineral rights?
What size spacing unit is it? Is there a producing well located on the spacing unit?
You should be asking your oil and gas attorney this question.
Total of 30 Acres, all other neighbors have signed unlimted so we are told, there is a pad in place about 2 miles way.
A-MAN said:
What size spacing unit is it? Is there a producing well located on the spacing unit?
The lawyer suggestd 320 acres knowing though that that is not going to work, what could happen if the remaining neighbors do not sign because we can not come to a agreement?
James H. McConnell, CPL said:
You should be asking your oil and gas attorney this question.
I agree. Talk with an attorney that is familiar with the state in which you own your minerals. What state is this? Also, have you leased you lands?
If the driller puts down a “Frack” well that is horizontal, all owners of minerals in the section (640 acres) will share in royalties. If the land is pooled, the process works for any un-leased or leased parts. The driller is asking for a law suit or endless problems if any mineral owners resist pooling.
There needs to be a pooling agreement. Unlimited is not it.