Drilling under another section????t

I have just been told by someone that has producing wells that the oil people told here that they were skipping section because they are going to directional drill under the other poeple's section next door so that they do not have to pay for the other section. What gives with this?? I thought that this was illegal . Also when they talk about drilling a well and going 4 to 8 ways out how can you find out if these are going under your property that they are not paying for and how far can they go out with each well head?

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Permalink Reply by Skip Peel - Mineral Consultant on July 7, 2010 at 8:16
Renee, someone was mistaken. Well permit applications contain plats that show the surface location and the bottom hole location of a well. There is nothing illegal or unethical about drilling from one section into an adjoining section. The well royalties will go to the mineral owners in the section where the bottom hole is located as that is the unit from which gas is being produced.

If you would care to learn how to access the plats contained in well permit applications, you can do so by using the tutorials on the SONRIS Help Center Group Page. Here is a link to an article that explains how to pull up the well file including the plat.

http://www.gohaynesvilleshale.com/group/sonris_help_center/forum/to...
Permalink Reply by Renee Rains on July 7, 2010 at 8:53
Thanks Skip, so this means they may never drill in my section but just suck everything out from under me and pay my neighbor lost of money for my stuff right?
Permalink Reply by Two Dogs, Pirate on July 7, 2010 at 8:57
No it means that they will not pay your neighbor that has the well site for the minerals under your section. They will only pay him for the use of the surface location. All Lessors in your section will get the royalty money.
Permalink Reply by Renee Rains on July 7, 2010 at 8:55
Also are there different rules for Texas? I have been told that they can not drill into another section without contacting and paying the owner in the section?
Permalink Reply by Two Dogs, Pirate on July 7, 2010 at 8:58
There are no sections in Texas only surveys.
Permalink Reply by Renee Rains on July 7, 2010 at 9:30
Thanks for all the help/advice you all give to us. At least this gives me a little hope instead of keep getting screwed again ($100.00 per acre !) When you see other section all around you being contacted and never you it get depressing when you can barley pay your bills!
Permalink Reply by Two Dogs, Pirate on July 7, 2010 at 9:47
Many are in the same boat as you. Some of the leases that I bought before my knowledge of the shale was this same sort of deal as yours but I was paying the same amount as the shalers. I feel bad for these folks but that was the going rate at the time.
Permalink Reply by Mac Davis on July 7, 2010 at 19:57
In theory, they figure out what area each well "drains." "Draining" refers to the area that the well pulls gas or oil from. The mineral owners for the drained area will be paid their "fair" share.

In theory, they won't take your minerals without paying you for them. You may not agree that the payment is fair.

In Louisiana, in the Haynesville Shale, they basically assume that the well drains the gas 330 feet to all sides of the producing part of the well bore. If the producing (perforated) part of the well bore gets within 330 feet of your property, they have to pay you for your fair share of the gas.

In Louisiana, they usually form "Units" and everyone in the unit receives a share in all production within that unit. Units are usually one PLSS section.

I've always assumed that Texas has units and forced pooling like Louisiana, but the units are not based on sections.
Permalink Reply by Les Bamburg on July 8, 2010 at 3:01
Mac, it is actually much simplier. A well either produces on a lease basis or a unit basis.

Most wells produce on a unit basis and everyone in the unit shares in the production regardless of the well's location within the unit.

If a well produces on a lease basis, only the mineral owner where the well is located shares in the production. Lease wells are typically very shallow oil or gas wells that have a limited drainage area.
Permalink Reply by Missy on July 8, 2010 at 3:39
Les B,
If a well is non unitized/ Haynesville Stray will the others who are leased iin the unit share in the production?
Permalink Reply by Les Bamburg on July 8, 2010 at 5:16
Missy, the non unitized status just means a unit has not been approved at the time of the well application. The unit would generally be approved prior to any well production resulting in the production being shared.
Permalink Reply by Henry on July 8, 2010 at 3:11
Mac,
To add to this... Because units are not formed on sections in Texas, the gas companies find it much easier to bypass the unleased mineral owner. Companies can gerrymander the units around the unleased tracts, and leave those landowners out. In Louisiana, with the units being full sections for the Haynesville Shale, the unleased mneral owner is much harder to bypass.

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