When an operator joins multiple units together to form a larger allocation unit, do the sub units that make it up have to be producing? There's a unit designated in a allocation unit that has no drilling permit that I can find, I have never seen division orders on, and have never been paid on. Yet, they have a unit designation document and say this is how our acreage is included in the allocation unit.
Thx
Martin
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It is kind of an "out of the ordinary" situation but I have seen an allocation unit just as you describe out in central TX in the Eagle Ford Shale where the operator joined one producing unit with another unit that did not yet have a well in it. The Unit Designation filed in the county makes it legal, I would think, but I am not a lawyer.
In researching the decades-old Tuscaloosa Trend and the immense wealth it has generated for many, I find it deeply troubling that this resource-rich formation runs directly beneath one of the poorest communities in North Baton Rouge—near Southern University, Louisiana—yet neither the university ( that I am aware of) nor local residents appear to have received any compensation for the minerals extracted from their land.
This area has suffered immense environmental degradation…
ContinuePosted by Char on May 29, 2025 at 14:42
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