What happens when bottom hole location is in different section than surface hole?

I just saw that another well has been permitted in our section but it shows the bottom hole will be in another section. Do we get the royalties, split the royalties, or do the bottom hole owners only get the royalty?

Views: 290

▶ Reply to This

Replies to This Discussion

Permalink Reply by FXEF on August 27, 2010 at 15:31
Royalty goes to landowners in section that the bottom hole is in.
Permalink Reply by DJG on August 27, 2010 at 16:48
Keep in mind that the perferations in the lateral will only be present in the section/unit where the bottom hole is located. That said, there will be for all pratical purposes no drainage of the reserves from the surface location is in this type of situation.

Only party that would receive any compensation from the non-producing section would be the surface owner who granted surface rights for the pad location.

RSS

Support GoHaynesvilleShale.com

Top Content 

1 Haynesville Fairway could support drilling into the 2050s?

Haynesville Fairway could support drilling into the 2050s?
2 What is the meaning of a Unit Well?

What is the meaning of a Unit Well?
3 Mitsubishi Corp in talks to acquire Aethon Energy Management

Mitsubishi Corp in talks to acquire Aethon Energy Management
4 Site Not Loading Fully?

Site Not Loading Fully?
5 BPX hits it out of the park with 3 Bossier Parish CULs

BPX hits it out of the park with 3 Bossier Parish CULs
6 Chevron acquires Smackover Brine Leases in AR and E TX

Chevron acquires Smackover Brine Leases in AR and E TX
7 "Rebalancing Volumes"

"Rebalancing Volumes"

Blog Posts

Tuscaloosa Trend Sits On Top Of Poorest Neighbourhood For Decades - Yet No Royalties Ever Paid To The Community -- Why??

In researching the decades-old Tuscaloosa Trend and the immense wealth it has generated for many, I find it deeply troubling that this resource-rich formation runs directly beneath one of the poorest communities in North Baton Rouge—near Southern University, Louisiana—yet neither the university ( that I am aware of)  nor local residents appear to have received any compensation for the minerals extracted from their land.

This area has suffered immense environmental degradation…

Continue

Posted by Char on May 29, 2025 at 14:42

Not a member? Get our email.

Groups



© 2025   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service