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Permalink Reply by Skip Peel - Mineral Consultant on August 12, 2010 at 4:37

Tracts within a unit with undivided interests must meet the 80% threshold but there is no minimum for leased acres set by the state other than the minimum spacing for the type of well and the controlling field order. Once those minimums are met it is strictly a business decision as to drilling in a unit with unleased acreage. There have been a few instances of operators permitting and even drilling in units where they did not realize there were unleased mineral interests. The title review for division orders usually reveals this over sight. I have always found it of interest that the state does not require a minimum number of acres under lease to a company in order to apply for a drilling & production unit order.

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Permalink Reply by sesport on August 12, 2010 at 14:41

Shelia - Question ... are you talking about rural or urban property?

thanks, 80)

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Permalink Reply by Shelia Hooks on August 13, 2010 at 3:07

rural

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Permalink Reply by sesport on August 13, 2010 at 3:42

Thanks, Shelia. Then I would suggest that the opinions of Jay & Skip are probably most accurate. My thoughts, being that I'm in a more urban section (and YES IT IS the urban fringe, lol), are that this figure might be lower for urban areas. But this is based strictly on personal experience, not any data that I'm collecting.

80)

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Permalink Reply by The_Baron on August 13, 2010 at 3:37

This is one of those questions that seems to pop up about once a month or so. Shelia, it has been discused at length before. YOu might want to try searching for past disussions.

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