Jack's 20 acres of HS land is in a section corner. (section 21 T10N R11W)
A man from Audobon Oil & Gas called Jack Blake today and wants to give Jack a check for $500. He says it is because they (SWEPI) are drilling a well on the section next to me and the wellbore will go under our land at some point, but it will be perforated in the section next to me.
SWEPI already drilled a well in my section and the guy from Audubon said they got the bordering land owners to our section to sign these agreements for $500.00 each. He says it doesn't matter how much land you have they pay only $500.00 for this.
He said they do this to get the maximum production from each unit.
He kept saying signing and accepting the $500.00 is the "neighborly" thing to do.
Jack asked the guy if Jack would be offered more if he waited and the Audobon guy said if you don't sign, they just kind of redesign the well bore to not go under your land.
The guy wants to get Jack to sign within the next several days.
What should Jack do?
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