Replies to This Discussion

Permalink Reply by sesport on March 29, 2009 at 11:55

WAIT! Where did those 2 more unit orders/apps come from for 17N, 13W in only 7 days? (since your 03/21 post)

Thanks Skip, we're taking up a collection to get you a Christmas gift certificate for next year's bulk supply of highlighters. Maybe a new color? Green would be good, the color of money. ha, ha

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Permalink Reply by Skip Peel - Mineral Consultant on March 29, 2009 at 12:08

I like the green. But it is not quite opaque enough for the delicate work of shading the townships in the shale. I like the underlying map detail to be visible. Pink is best. 2 more units in 17N -13W? Are you sure? Oh, those? Les B. had 'em. And he let me use 'em this week. Actually he and I check each others work. And he has corrected a number of my mistakes of late. My main spreadsheet is approaching 500 lines. And looking at it for too long can sometime make me cross eyed.

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Permalink Reply by sesport on March 29, 2009 at 12:17

Not bad teamwork, not a bad team, either. BTW, do you have the serial #'s for those 6? I already have numbers for the older ones, need numbers for newer ones.

Best :0)

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Permalink Reply by Skip Peel - Mineral Consultant on March 29, 2009 at 12:22

You mean docket numbers? Unit applications don't have serial numbers. Les and I are locked in a debate over 13N -9W at the moment. My unit count is 31(I entered it incorrectly on the shapshot grid) and his is 32.

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Permalink Reply by sesport on March 29, 2009 at 14:47

Thanks for the correction, docket numbers it is. Get back when you can.

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Permalink Reply by Bill Fowler on March 30, 2009 at 3:38

Hey Skip - First of all, thanks for the map - its very helpful. I have a couple of questions about units that hopefully you can answer. First of all, does the applicant have to have over 50% of the land leased or controlled in the unit in order to make an application? Then once the application is approved, does the applicant become the "operator" of the unit? Or, does the unit exist on its own without the concept of an operator? And finally, what are the rights of the other WI ownes in the unit as far as proposing and operating wells when they own less than 50%? Thanks a lot. - Bill

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Permalink Reply by Skip Peel - Mineral Consultant on March 30, 2009 at 3:55

Bill. 75% is the threshold for unit application. The applicant successfully receiving a unit order from the state has the right to operate or to name an operator. As 50% does not allow for a unit designation, your last question does not pertain. A unit order "force pools" all interests within the unit boundaries. As to "force pooling", there is a wealth of information and opinion on the subject as it has been a popular topic of conversation. I suggest you look in the archives for those discussions as a full accounting is not possible with the character limits of regular discussion reply boxes.

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Permalink Reply by Bill Fowler on March 30, 2009 at 4:19

Thanks Skip. How do I access the archives on force pooling?

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Permalink Reply by Skip Peel - Mineral Consultant on March 30, 2009 at 4:39

Under the discussions on the main page you will see a command "View All". Go to that page and use the search box with the key words, "force pool".

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Permalink Reply by Catfish on March 31, 2009 at 1:30

Skip,
Are you stating that an operator has to have 75% of the land under lease in order for a unit to be formed or 75% has to be under lease and could be by more than one operator?

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Permalink Reply by Skip Peel - Mineral Consultant on March 31, 2009 at 1:55

An operator must control 75% of the acreage through leases. That does not mean that every land/mineral owner in the section signed with that company. It is quite normal for leases to be assigned two or three times from one company to another before they eventually end up in the possession of the operator. And some lessees take leases solely to have a working interest in a well(s). The have no intent to develop. Just to contribute their leasehold and be a WI (Working Interest). As long as 25.1% of acres in a section are not controlled by one party, no unit. Doesn't matter if that percentage is one or more other companies, unleased leandowners or some combination.

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Permalink Reply by Skip Peel - Mineral Consultant on March 31, 2009 at 2:19

KB. I have not reviewed the mineral statutes. I did ask a trusted O&G attorney concerning the threshold for unit application.

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