Replies to This Discussion

Permalink Reply by Highwayman on March 14, 2012 at 2:42

Chesapeake is the operator of the original Black Lake Unit and holds all of the leases by its production from one oil well.  I would think that Wagner would not be drilling in the original unit unless part of a deal with Chesapeake.

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Permalink Reply by Skip Peel - Mineral Consultant on March 14, 2012 at 3:20

Those owning minerals within the boundaries of a unit whether voluntary or compulsory receive royalty payments from any and all producing unit wells no matter where those wells are located.   However from our prior discussion I think the Wagner well is just outside of the existing Black Lake field wide unit.  If memory serves, Wagner applied for and was granted this new drilling unit, PET RC SUA.  Only those mineral interests located within the boundaries of unit PET RC SUA will receive royalty from the Olivier well.  You can't assume that you will receive royalty for a particular unit just because you were sent a notice letter containing the unit application.  State law requires that notice be given to all mineral interests of record within the proposed unit boundaries and adjacent to the unit boundary to a distance of 1,000'. Those who own adjacent minerals are not included in the unit and do not receive royalty payments. 

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Permalink Reply by The Shadow on March 14, 2012 at 5:21

Thanks Skip.  I knew we were not a part of the Olivier well, but there are some sites within the field unit that Wagner has sent us letters about with plats.  Have not seen any activity at these sites yet.  

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Permalink Reply by Skip Peel - Mineral Consultant on March 14, 2012 at 5:28

None of the plats are contained in the public record as far as I know and there are no state regulations that require notice (letters) other than applications for drilling units and alternate unit wells.  If the plats you speak of are for alternate unit wells they will appear soon in the Commissioner's public hearing schedule.

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Permalink Reply by Mattie on March 13, 2012 at 6:58

Thanks, Skip.  Sorry I couldn't be more helpful.....just some good memories from the past! 

 

FYI, I missed seeing you in Shreveport last weekend - short visit - will be back during "mudbug season", and hope to catch up soon! 

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