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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on February 22, 2011 at 9:16

Donna, Section 23 is a Chesapeake drilling unit.  There are recently permitted wells to your immediate north,south, east and west.  You are surrounded.  LOL!  I don't think you will have to wait too long before Chesapeake starts your well.  Good Luck.

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landownerPermalink Reply by Donna on February 22, 2011 at 9:36

Thanks Skip, but will it matter that I leased with Comstock, not CHK?

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on February 22, 2011 at 10:47

If it does it will be in regard to royalty based on a higher wellhead price than you would have received from CHK.  When an operator, in this case CHK, is given the authority to force pool all mineral interests in a proposed unit, they are required to be bound by the lease agreements in force no matter which company took those leases.  You'll be fine.

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landownerPermalink Reply by Donna on February 22, 2011 at 10:54

That's a relief, ty!

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Oil & Gas ProPermalink Reply by Les Bamburg on February 22, 2011 at 17:35

Skip, if Chesapeake is marketing the production then they may be the ones setting the price for calculating royalty.

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Oil & Gas ProPermalink Reply by Les Bamburg on February 22, 2011 at 17:34

Donna/Ty, it means you will need to look to Comstock for royalty payments.  It is possible that Comstock will have an agreement with Chesapeake to make royalty payments on their behalf.

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