I have a question that maybe someone can answer? When a company makes a unit out of a section and one half, what happens to the one half of the section that was not included in the unit?

Views: 36

Reply to This

Replies to This Discussion

Thanks KB, I was afraid that the whole section maybe held by production even though it is not in a unit.
The un-unitized area may still be HBP. it would depend on the leases. If the tracts leased do not have a horizontal pugh clause, and part of the leased tract is in the unit, the entire tract would be HBP even if it is not in a producing unit.
This is really strange. Bought the property, it was leased by KCS at the time. They renewed the lease, but there is a well across the road that is operated by Silver Oak, when we checked into this, we were told that we were not in the lease for Silver Oak. We are leased with KCS,
I am going to take a chance and say that your property is located in T11N-R14-S33, the road you're referring to is Hamilton Road, and your property is located on the west side of the road. The well on your side of the road was permitted to KCS, and the well on the opposite (east) side was originally permitted to Belco, but is now assigned to Silver Oak. I have been unable to located the unit lines, but the well numbers are 233452 (KCS) and 224587 (Silver Oak). In searching for the unit lines for your property, I found other units created by Silver that did not include the entire 640 acre section. I am going to assume, since I can not find the actual information, that this is what they have done within your section.
The section is 32. Thanks

RSS

Support GoHaynesvilleShale.com

Blog Posts

The Lithium Connection to Shale Drilling

Shale drilling and lithium extraction are seemingly distinct activities, but there is a growing connection between the two as the world moves towards cleaner energy solutions. While shale drilling primarily targets…

Continue

Posted by Keith Mauck (Site Publisher) on November 20, 2024 at 12:40

Not a member? Get our email.

Groups



© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service