landowner

CUL Allocation by Section

I started a discussion a few months ago on this topic, and had the experts here on this site help me understand how production is allocated between sections within a CUL.  I thought I understood, until now.

I have a small royalty interest in Section 2, T 11N, R15W.  That section is now included in a CUL with 35-12-15, and is being produced by  well number 251241m McCoy 35-2 HC.  As per practice, each section has its own LUW Code.  The well pad is actually in 26-12n-15W, so the well traverses the entirety of Section 35 and a portion of Section 2.

The well has now been producing for almost a year.  I would expect that the % allocation between the two sections would  be consistent month after month. From the Sonris site, under the Production for this well, the first few months of production attributed much more production to Section 2, but after a few months, the production attributed to Section 35 is almost twice that for Section 2.

How is this possible?

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on December 14, 2019 at 7:27

SONRIS data is subject to accurate reporting by operators and accurate entry by SONRIS database staff.  Both are human and occasionally make mistakes.  In this case the discrepancies began in May.  You should have received at least five royalty statements since then.  Does the volumes reported on your statements match those in the SONRIS well file?


landownerPermalink Reply by Steve P on December 14, 2019 at 12:06

ah, not yet receiving royalties.  been in a dispute with Comstock over validity of the 50 year old lease.  The lease has a problem with the “producing in paying quantities” legal requirement.  It’s a close call.


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on December 14, 2019 at 12:09

Good luck.  I hope you have a good O&G attorney.


landownerPermalink Reply by Steve P on December 14, 2019 at 12:20

You may recall that I hired RD on this, but I’m not willing to pay to go to court and he didn’t want to take it on otherwise.

The case is a very close call.  we are working it.


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on December 14, 2019 at 12:23

RD is the top O&G law firm for land/mineral owners in LA, MS, AR and TX.  I understand your hesitation to litigate.  It's usually not cheap.

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