I have NPRIs in Midland and Upton Counties, Texas that have vertical wells, and the producer has farmed out the tracts to XTO, who is permitted for horizontal wells. The units are Leonard Revocable Trust Unit 2 and TXL 27 Units 3 & 4. I own an undivided interest in Sections 34,26,48,38, Block 39, T-4-S, Midland County and in Section 6, Block 38, T-5-S, Midland and Upton Counties, all in Texas.
I have read everything I can find on MRF about this issue, and it seems to come down to whether or not I am in the drill site. I am not sure because they are horizontal wells. Any suggestions welcome!
If you don’t sign the ratification then they will put a production sharing agreement in front of you to sign. In the end, there isn’t much NPRI owners can do because your tract will be on a drainhole. I would ask for a PSA instead of a ratification, or if the unit looks reasonable, sign the ratification.
I’m happy to guide you through that if you’d like.
Brandon
Thank you, Brandon, for your reply.
Have decided my RI is not big enough to negotiate over, and after not hearing anything here, talked to XTO's landman and sent back the ratification this morning. I don't want my case to be the one that decides the law going forward!
Camille
Damn, you might have hosed yourself. If XTO was permitted for a horizontal well, there should be a plat on file with the Railroad Commission, and it should show you whether or not the tract(s) of land to which your NPRI applies are in the drilling unit and whether or not the actual drill site is on a tract of land to which your NPRI applies. If you have an NPRI on the drill-site tract and agree to pooling (standard clause in a Ratification), then you just voluntarily reduced your royalty income.
May be getting more, so you can help me fight then! Just got 4 division orders.
Thanks for commenting.
Camille