landowner

Who gets royalties?

Well S/N 242133 is in Section 12 T11N-R12W, but the well name HA RA SU74 is i Section 13.  Encana is drilling the well.  According to Well Information report 3/4/11 well is being drilled (spud 2-15-11; set 10 3/4 to 1875' w/ 894 SW) and report 3/11/22 well is "waiting on another rig to drill horizontal".  Do the royalties go to section 12 owners or section 13 owners or both?

Also if anyone is in this area, is the rig actually on site? 

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landownerPermalink Reply by Nancy Taylor Ds2 on March 16, 2011 at 11:13
This is in DeSoto Parish.

landownerPermalink Reply by Spring Branch,mineral owner on March 16, 2011 at 12:00
The surface location is in Section 12 but the bottom hole is in Section 13.  Section 13 mineral owners will get the royalty from this well.  I don't know if the rig in on location, but from what you read, I would guess no.

landownerPermalink Reply by Nancy Taylor Ds2 on March 17, 2011 at 8:46
Why wouldn't the rig be located in Section 13? 

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on March 17, 2011 at 9:08

Because this is a "horizontal" well.  There is no production from the vertical well bore (in this case, Section 12) only from the lateral or horizontal portion of the well bore in Section 13).  Since these drilling units are a square mile section and the longest allowed lateral length for a well is ~4,620', it helps to start from outside the section to get thay maximum length.  It takes several hundred lateral feet to turn the well bore from the vertical to the horizontal.  This video is a good visual example.

 

http://www.oerb.com/Default.aspx?tabid=242

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