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Permalink Reply by Lee on September 9, 2008 at 2:27

KB, thanks for your reply; I hope this is sufficient information. Can't post the document, no scanner here.

The locations are Sec 20, 29, 32 T16N, R16W and parts of 19, 30, 31T16n R16 W. (Caddo Parish, SW side). The document is a letter from Commish Welch advising of a pre-hearing conference to discuss an ammended application from the operator to change these units from 720 acres to 929-955 acres and redefine those unit depths also to be between the depths of 9828' and 11145'.

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Permalink Reply by Grillin' - MmmMmm on September 9, 2008 at 8:30

Agreed. There is nothing magic, and definetly not scientific, about 640-acre units. In some areas, the units are drawn around reservoir boundaries; not that applicable here but they are some strange shapes!!

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Permalink Reply by Lee on September 9, 2008 at 2:28

Forgot to mention the area is going from 6 units to 4 units. I don't see more wells proposed.

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Permalink Reply by Kassi on September 9, 2008 at 4:13

No, this is not good for the land owner. Your royalty will go down if the acreage in the unit increases but the number of wells stays the same. Your royalty is based on your decimal ownership in the unit. So, you divide your acreage by the total acreage in the unit to get your decimal ownership.
If you have 10 acres it is 10/640 = 0.015625 in a typical 740 acre unit
a 710 acre unit drops it: 10/720 = 0.013888
a 919 acre unit drops it even more 10/929 = 0.0107642

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