landowner

Allocation unit pulls out one tract from a unit to include

On an allocation unit, I have always experienced that they include entire units to make up the allocation unit.  But I was just notified by an operator that the allocation unit has been amended to just include one tract from a smaller unit, in which we don't have ownership so we are excluded.  Can they do that?  Extract just one tract from a unit to include in the larger allocation unit? 

Thx

Neeky

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on November 11, 2021 at 8:31

Sounds like a question for Julie.  jffree1.  I hope she tunes in.

Permalink Reply by jffree1 on November 11, 2021 at 8:45

Neeky, can you share the name of the unit so I can go look at the plat?  Do you have a copy of the plat as it was before they made the acreage change? If so... can you scan it and post it here?


landownerPermalink Reply by Neeky on November 11, 2021 at 9:52

Caddo Lake 3H.  The as-drilled plat still includes the outline of the Furrh Cooper unit but I have been told that they are only including tract 12 of that unit in the larger allocation unit. 

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Permalink Reply by jffree1 on November 12, 2021 at 2:16

Neeky, you need to see the Unit Designation for this well filed at the County Clerk's office. That will show you who they intend to pay royalties to. If, on the Unit Designation, they omit all but Tr. 12 out of the Furrh-Cooper Unit then your question is better answered by an oil & gas attorney who understands these allocation units and all the rules about sharing.

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