Well Spacing and Royalties

Oklahoma Mineral Rights Beckham County, OK
1

This is probably a really dumb question but it is drving me nuts so I have to ask.

I have royalties that were running a pretty consistant number, let's call it $100 with standard 640 acre spacaing in the section. Then the operator ask for and was granted revised spacing of 320 acres and immediately spudded a new well. The month after the change in well spacing was granted the royalties decreased by 50% to $50 and have remained there. is this coincidence or does 50% of the existing production get escrowed until the DO on the new well is issued?

2

What is the section township and range ?

3
30-T12N-R22W
4

http://imaging.occeweb.com/OG/Well%20Records/1DD0F482.pdf

http://imaging.occeweb.com/AP/CaseFiles/030640FD.pdf

http://imaging.occeweb.com/AP/CaseFiles/03065C85.pdf

http://imaging.occeweb.com/AP/CaseFiles/03065C87.pdf

http://imaging.occeweb.com/AP/CaseFiles/occ5043968.pdf

https://www4.oktax.onenet.net/GrossProduction/PublicSearchPUNbyLegal.php

http://imaging.occeweb.com/OG/Well%20Records/03068F9A.pdf

Found nothing about them changing the spacing. The completion test showed a great well but long term production is not for some reason .

5

Apache has a permit for the Taylor 30-12-22 horizontal well. Approved October 7, 2013. To the Hoxbar. On the west side of the section 30, increased well denisty requested approved september 2013. Royalties cut 50% from OCtober to November. Probably just a coincident.

Ron McKenzie said:

6

Sounds about right .