How does Encana's (Shell) 'Multi Well Pad Gas Factory' affect royalties?

If your section is not in the section where the actuall vertical drilling is done, but one of the sections the other 3 horizontals is located, what are the ramifications?
Is your royalty calculated on your section of 4 or yours and 3 other sections totalling 160?
Is this good or bad?What are the pros and cons?

http://encana.com/investors/presentationsevents/pdfs/20090601-rbc-c...
see page 13

Tags: desoto, drilling, encana, factory, gas, multi, pad, parish, swepi, well

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Replies to This Discussion

Permalink Reply by FXEF on January 12, 2010 at 14:42
Still drilling... I can see the rig from my kitchen window. SPUD 11-30-09 be patient.

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