Replies to This Discussion

Permalink Reply by MB on June 21, 2009 at 5:35

Would love to hear Skip Peel/Jim Crow/Jay the Geologist/KB/Les's responses. Best

Permalink Reply by Skip Peel - Mineral Consultant on June 21, 2009 at 6:21

Not the surface location of a drilling pad nor the direction and distance of the well bore are of importance concerning royalty. The perforations in the wellbore determine what tract or tracts are being produced (drained) and receiving royalty payments. All mineral owners within the unit where the perforations are located will receive their proportional share of production. Landowners not included in the unit are compensated for a wellbore easment and Rights-of-way by operators who use their surface to drill into adjacent tracts. I hope I understood your question and you find this explanation to be an adequate answer.

Permalink Reply by Two Dogs, Pirate on June 21, 2009 at 6:25

Horizontal wells are drilled into each section as a separate unit from the mega pad leaving less enviornmental damage on the surface. Your royalty is calculated from the product produced from under your section or unit.

Permalink Reply by VSC DeSoto South on June 21, 2009 at 17:16

I f I understand correctly then, even if the pad is in another secion, if they run a lateral under your section/unit which they perforate and it produces, your share would be the production from the amounts under your section/unit. That makes sense. If it all laterals are in your 640 acre unit, you would be included for all production in the unit.

The 'pro' would be that there is less service damage.
Any cons?


Thanks much.

Permalink Reply by Missy on January 13, 2010 at 4:43

IS there any compensation for the surface owner who will have the off unit storage tanks located on their property?

Permalink Reply by Les Bamburg on June 21, 2009 at 8:06

VSC, as others have stated royalty is paid to mineral owners in the section/unit where the lateral is perforrated and producing. A lateral cannot be perforated any closer to the unit boundary than 330 ft. This generally means the maximum perforated length that a lateral can be is 4620 ft (5280 - 2 * 330).

Permalink Reply by Two Dogs, Pirate on June 21, 2009 at 9:50

Les wouldn't a cat-a-corner lateral be around 6,700 feet?

Permalink Reply by insomniacnla on June 21, 2009 at 16:05

VSC,

Are you referring to the Encana wells in Sec. 26 in 15n 14W? If so, I think that at least 2 of the 4 wells being drilled in Sec. 26 are for Secs. 24 and 35. I have been trying to keep of with those.

Permalink Reply by Les Bamburg on June 21, 2009 at 16:19

Two Dogs, yes in theory but that would destroy the future well spacing for a unit (section). To date most wells have been drilled in a north-south orientation with a handful drilled east-west.

Permalink Reply by Dixie on January 10, 2010 at 3:07

Would someone tell me the size of a superpad compared to a regular pad being drilled by SWEPI/Encana for Haynesville Zone, if there is any?

Permalink Reply by VSC DeSoto South on June 21, 2009 at 17:20

I was referring to the illustration on page 13 of the Encana presentation in my initial question.
Thanks for the reference to the 2 wells though.

Permalink Reply by JAMES SMITH on January 11, 2010 at 10:45

Anyone know about how the well in Sec19 t14r14 producing? How much? Etc??

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