I'm very new at all this but I need to know if anyone can tell me about additional wells in our section. Will we receive royalities from all producing wells in our section? If not, how is it determined who gets paid and who doesn't? Any help is greatly appreciated.
Charles, every horizontal well permit includes a location by section for the PBHL (planned bottom hole location). That section is where the perforations in the wellbore are located and the section/unit where the royalties are paid. You may review all the wells in the sections surrounding yours to determine the PBHL's for those wells. I suggest that you spend some time learning how to use the state database, SONRIS Lite, to follow the development activity in your, and the surrounding, sections.Here is a link to help you get started.
Hey..I really appreciate the info.. This is new to me and it's confusing. My family was told that we were going to get paid for a well in section 34 but then were told they made a mistake.. Now, we're told that the well ,even though it's in section 34, the actual pipe is in section 27 ? Thus, we don't get the royalties... It's like everyone putting a stray into a punch bowl... My concern is how to identify who's drawing from eaches punch bowl? Really hate to be suspicious on this but I do have concerns.. Don't tell my family for over 2 months that we're fixing to get a big check and then say..oops..my mistake..the drilling went in a different direction then what we thought.. This came from the company themselves..To many flags are popping up for my comfort..I'm considering getting an attorney at this point..Really hate it, but I have to protect my family..
Charles, an experienced Oil & Gas attorney is a very good idea. Just be aware that you have to check credentials as not all attorneys are qualified to advise on Oil and Gas related contracts. That is an important consideration, however you can determine the development activity on-going in your section on SONRIS Lite for your self. Specifically as it relates to which wells are actually drilling into and producing from the section/unit where your mineral interest is located. That's relatively easy with help from the members of GHS and does not cost you a cent although us regulars like it when "newbies" contribute to the site. Thank you, Keith.
Charles, you just need to look up information and become better informed. It can be done rather easily once you get the hang of it. Wells have to be drilled where they are permitted and the permits are available online.
VSC, the easiest thing is to turn on the appropriate layers in SONRIS where you can see surface locations. I'll attach a map later.
On SONRIS, turn on Oil/Gas wells, Oil/Gas well Bottom Holes and Bores, Well pits, Townships, Sections, Populated Places, Primary Roads, Local Roads. Click "T" next to some of these to apply the labels.
Here's a screenshot of the map:
Well 1 and 2 are HA (Haynesville Shale) wells that drain your section. The square or circle in the middle of the line end is the surface location. The long line is the horizontal well bore. The little dot on the south end is the bottom hole location.
What looks like one long horizontal bore is actually two wells coming from the same surface location. One bore goes south, one goes north. The surface location is actually not exactly the same, but they're real close.
Well 4 and 5 are HA wells that drain (draw gas from) section 15-9-27 to the north. Their surface location is in 15-9-34.
Well 3 is a vertical well in section 34.
Well 6 starts in section 34, but drains section 14-9-3.
The wells marked 1,2, and 3 are the only ones that might pay you.
1, and 2 are HA wells that drain your section.
Well 3 is a CV (Cotton Valley) vertical well that is in your section. It's listed as unit CV RB SUBB. I assume CV RB SUBB covers the entire section and it should pay you, but I'll have to look that up in SONRIS to be 100% sure.
Well 5 is a horizontal Cotton Valley well.
Cotton Valley vs. Haynesville Shale is a distinction between different rock formations. It probably doesn't mean anything in particular, but there has been some hanky-panky in the past about designating a well as one formation vs. another as a way to shaft the mineral owners.
Have I succeeded in increasing your confusion level?
I should probably make an example of going through SONRIS step by step to look up information like this, but that's going to be a bit of work.
And you will need a certification from Keith. LOL! He and I have discussed a SONRIS class in Shreveport a number of times in the past. I have a willing sponsor and know the appropriate staffers at LOC. The problem has been the BP Macondo Well which may be less of a problem in the future. I hope to offer a class in the Fall.
CV RB SUBB does map exactly to section 34. Some of the CV units in that area do not align with section boundaries. See the PDF below.
Skip, I may just go muddle through each click it took to get to that map, take a screenshot of each and show others the way I drunkenly stumble through the SONRIS minefield. A PDF file will probably be the best way to go.
Hope you don't mind if I ask a question since I am trying to learn how this all works. Here goes. If Mr. Woodward has an interest in section 34 where well #239653 has been productive (quite productive) since late 2009, why hasn't he seen any royalties? Second point of confusion comes from the fact that there is now a LUW of 615792 associated with the Haynesville unit and the CV unit is associated with LUW 614950. Is it common to have a unique LUW for the Haynesville units? He may have a significant interest base on the LUW name and the well names within that particular section.
Remember I am really new - like I just joined and start looking at this stuff a couple weeks ago. Thanks for any expertise that you may be able to provide.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More