Number of wells per production unit.

Question. Does the amount of wells producing on a 640 acre production unit increase the amount of royalties paid out to a person who's land is in that particular unit? Scenario: I have 20 acres in a unit of 640 acres containing 20 wells on the whole unit. The wells are each producing at or above 5mill mcfs a day. Will I be paid a royalty from each producing well?

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Permalink Reply by The_Baron on August 20, 2008 at 4:45
Every leased landowner in a unit will receive royalties on their pro-rata share of all the production in a unit. (20 acres in a 640 acre unit = 0.03125%). Your royalties will be the percent of the unit you are by the royalty you negotiated on your lease.
Permalink Reply by Margaret Wren on August 20, 2008 at 4:53
I have royalties in Bossier parish (LCV) sec36 t17n 11w there are 15 producing wells, I get royalties from all of them! It looks like a 16th is going to be drilled, as they have cleared and prepared another site. We will see....

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