Formed Units
Can someone explain to me how units can be formed covering the west half of one section and the east half of another section to form a unit? The reason I ask is I own property in one of the sections mentioned but not in the unit. A well was recently drilled about a quarter mile from my property in the inside the unit but I will not receive royalty payments because my property is outside the unit but inside the section the well was drilled.
Can someone explain this to me? People outside my section will be paid for gas produced in my section, not theirs. Another way the O&G companies shaft landowners.
Can someone explain this to me? People outside my section will be paid for gas produced in my section, not theirs. Another way the O&G companies shaft landowners.
Views: 103
Replies to This Discussion
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Oil & Gas ProPermalink Reply by The_Baron on -
Calm down.
Units can be any shape.
They are usually formed along section lines in North La for convienience.
From what you describe, this is still a 640 acre unit. Very standard.
You will receive royalties on all wells in your unit, regardless of section. So if this well is in your same unit, you will get royalties.
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Permalink Reply by Sidekick on
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Sorry! The reason I am upset is my property is located in the western half of section 20 Twn 12n Rng 12n. The units formed is HOSS RA SUF and HOSS RA SUG. The well drilled is in HOSS RA SUG, which covers the east half of section 20 and the west half of section 21. The well is about a quarter mile from my property in HOSS RA SUG but my property is in HOSS RA SUF, all in section 20.
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Oil & Gas ProPermalink Reply by The_Baron on -
In theory, the well will not drain your property (wells have required setbacks from unit lines). Hopefully the will make a successful well and they or someone else will drill some in your unit. Watch this well, the Hosston can be a tricky sand sometimes.
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Thanks for your reply...sorry to sound so hostile! Just trying to understand the purpose for these units. This well was going to be drilled with or without the unit being formed. It just seems wrong to me. If a well is drilled in section 20, the landowners of section 20 should share in production and not landowners in another section.
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Oil & Gas ProPermalink Reply by Two Dogs, Pirate on -
What was your signing bonus and royalty, when did you sign a lease? This unit could be a chance for you to make a better deal.
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What do you mean? The lease was signed approximately 5 years ago for low bonus and 20% royalty. From what I find through research, the units were formed at about the same time. There is another well that I receive royalty on that has me HBP.
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Oil & Gas ProPermalink Reply by The_Baron on -
Do both units have the same operator? Hopefully they will drill more wells inn your unit if they are successful with the well close to you.
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landownerPermalink Reply by Bobi Carr ("parker") on -
Sidekick,
Hopefully gas will rebound before they drill a well in your unit.
(Got to look for the silver lining).
GOOD LUCK.
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Oil & Gas ProPermalink Reply by The_Baron on -
I as I said above, there is no rule that requires units to be on section lines.
Their all just imaginary lines on a map anyway.
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Oil & Gas ProPermalink Reply by Jerry Bruce on -
go get an education on it and you will realize that it has to do with the state and the regs set by the state and realize that you are just whing and not getting shafted and from your descript your prop is in a completly different unit
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