Replies to This Discussion

Permalink Reply by Bird on September 5, 2008 at 5:14

Yes, a section is one square mile. Also a township is six square miles, usually. The unit set up for drilling is usually a section of 640 acres and all mineral right owners should draw royalties from production. All is negotiable, some are signing for 25%. I like a clause of a bump up to 30% after the cost of the well is recovered.

• ▶ Reply

Permalink Reply by texasshale on September 11, 2008 at 6:17

The number of wells is determined by how your lease is pooled with other acreage. It is limited by the practical aspect of the pooling.

• ▶ Reply