Company "Good-Oil" is proposing to drill a well in section 8, 245 feet from the section line dividing section 8 and 9. The well as proposed is to be vertical for 6750 feet at which point it becomes horizontal and continues East for a total of 7324 feet.
A question has popped up regarding "pooling" royalties for mineral owners in Section 8. Company "Good-Oil" states that the drilling unit to which they expect to recover oil is approximately 530 feet East of the dividing section line between 8 & 9 and thus mineral owners in Section 8 are out of luck. ( Because the distance to oil in section 9 exceeds the 460 foot setback) Out of luck unless they are prompted by production to drill in Section 8 at a later date. Permits have been issue with letters of explanation, etc.
Can Company "Good-Oil" do this?
Robert