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Permalink Reply by WHuguet on July 16, 2008 at 3:15

Les B is correct.

No risk penalty for unleased landowners (only non-consenting lessees), and open question on whether payout determined on well or unit basis.

Also, as said above, as a practical matter I can't imagine a well being drilled in a unit that is 51% unleased (unless the unleased owner is large and sophisticated and works out some kind of drilling arrangement or deal with the operator of the other 50%). There may be other non-cooperating lessees (working interest), but not that large a percentage unleased.

This sometimes gets mixed up with the 80% rule, which requires the consent of 80% of co-owners of a tract of land to utilize a mineral lease on that acreage.

And yes, in the good ole U.S.A. the commissioner (or State) has general authority over oil and gas regulation, and that sometimes will infringe on your individual rights (it has been held constitutional).

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