landowner

Well permitted without our acreage leased

Can an operator go ahead and permit a unit with our acreage in it and drill if they do not have our acreage leased?. A few facts:
-Acreage is in Texas
-Drill site is not on our tract
-Our tract makes up about a quarter of the unit acreage and we own an undivided interest

If they proceed to drill without having us leased, what options do we have?

Tags: drilling, lease, without

Views: 59

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Replies to This Discussion


landownerPermalink Reply by Frank on August 12, 2010 at 15:38
You need over 320 acres in Louisiana to control a section or common place unit. You'd be SOL if they held 50.000001 % here. Not sure about Texas. Ya'll got some strange mineral rules. God bless, Huey!

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on August 13, 2010 at 6:01
Frank, can you give us the regulatory statute or conservation rule that mandates 320 + acres for the formation of a drilling unit for a 640 acre section?

Oil & Gas ProPermalink Reply by MLE on August 13, 2010 at 5:07
If you're not the drill tract, and they still have a majority of it (your tract) leased, they can pool that tract in their unit as long as they've let the Rail Road Commission know that there is unleased interest in that particular tract.

landownerPermalink Reply by FXEF on August 13, 2010 at 6:15
In Texas does a UMO pooled to a unit draw 100% royalty after well is paid out?

Oil & Gas ProPermalink Reply by MLE on August 13, 2010 at 6:28
Yes, the well has to pay out before the umo can receive royalty payments.

Oil & Gas ProPermalink Reply by Les Bamburg on August 13, 2010 at 6:53
MLE, I assume you mean revenue less operating expenses rather than royalty.

Oil & Gas ProPermalink Reply by MLE on August 13, 2010 at 7:08
I do indeed.

landownerPermalink Reply by MARG on August 13, 2010 at 12:21
With today's prices, it will be a much longer time to get a well paid for, won;t it?
LOL or COL?????????

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on August 13, 2010 at 12:28
MARG, Please do not COL. Keep in mind that the depressed nat gas prices will not last forever and will only impact those wells drilled in the next few years. With 80 acre spacing, there are a lot more wells to come.

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