Does unit size change?
I received a Division Order for a second well that was drilled in Sec 10-9N-13W. The acreage of the unit for the first well (Well #242862) was 644.79017 acres and I owned .35813 acres of it and they pay me on the royalty unit interest of .000138855. For this second well in the same section (Well #247404), they say it is 639.211 acres and I own .284 acres and my royalty unit interest for payment is .00011107. I don't understand how the size of the unit (section) would change. Can someone explain this to me? Has anyone had more than one well drilled in a section and found the size of the unit changed?
Views: 1180
Replies to This Discussion
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Permalink Reply by Skip Peel - Mineral Consultant on -
Since the unit is defined by the size of the section, the total acres shouldn't change. You'd need to ask Chesapeake about the difference. I doubt that anyone could give you an answer unless they are in the same unit and they have contacted CHK.
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Permalink Reply by S S on
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Since both wells are in HA RA SU74, does it make sense that the size of the acreage changed?
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Permalink Reply by Skip Peel - Mineral Consultant on
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No. Where do you get the two different unit acre totals?
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Permalink Reply by HBP on
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They have likely revised the unit survey since the initial one. I would contact them and have them send you the most recent (assuming it is not on Sonris, some are not filed).
Also, watch for any retroactive adjustments to the revenue you received on the initial well. If they are paying you less interest now in the same unit, then they may choose to adjust those previous payments down.
And of course, you don't have to execute the Div. Order under La. law, so I would just hold on to those as you confirm your decimal and contact CHK owner relations.
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Permalink Reply by Skip Peel - Mineral Consultant on
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SS, I agree with HBP.
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Permalink Reply by 1kw6x71km1v37 on
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A unit size reduction of 5.58acres is abnormal and suspect. Did the operator use a registered surveyor on the second unit?
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Where would the results of the survey be filed on Sonris? How would I look for that info? I know how to look up some things on Sonris.
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I believe it is under Data Access, Well Information. Seems like unit surveys had their own file in Well Info recently, but darned if I can find it now.
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Permalink Reply by Skip Peel - Mineral Consultant on
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See if this helps.
http://ucmwww.dnr.state.la.us/ucmsearch/UCMRedir.aspx?url=http%3a%2...
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Thanks for the link. I see this survey was done in March of this year and they say it is effective October 2010 - after 2 other surveys were done. Interesting. By your link I figured out how to look for surveys if they are recorded - which the 2 previous surveys in this case were not.
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Permalink Reply by Skip Peel - Mineral Consultant on
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You're welcome.
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