Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on May 12, 2018 at 10:28

Mineral and surface owners of record in a section, and adjacent to a distance of 1000', are sent a notice letter when an operating company plans to drill one or more alternate unit wells.  This is required by the state for spacing purposes and is part of a public hearing whereby the operator receives approval to drill the well(s).  When approved the application becomes a field order which is effective indefinitely and comes with no requirement to actually drill the well(s). The operator must still apply for and receive a permit to drill. No notice to mineral and surface owners is required for the well permit so you won't be receiving anything else in the mail.  To track a permit for that well(s) you will need to search the state O&G database, SONRIS.  Here is a link to the SONRIS Help Group that will show you how to do that and other simple searches that mineral owners should master.

http://gohaynesvilleshale.com/group/sonris_help_center

Permalink Reply by JTM on May 13, 2018 at 0:48

Thank you. 

Permalink Reply by Skip Peel - Mineral Consultant on May 13, 2018 at 0:54

You're welcome.  Let me know if you need any help.

Permalink Reply by JTM on September 19, 2018 at 2:51

Update. Royalty payments for well 240267 T16-R14W-17  (Taylor well) in South Caddo ceased last month. I assumed it was because Chesapeake was completing the new cross lateral alternate well number 250954. The alternate well is now producing so I called Chesapeake to see if a Division Order was coming my way. They advised the new well was not part of my lease. Onebane Law Firm sent me a pre-application notice in January with a map of the proposed well. It begins in section 20 and ends in section 17 where I have minerals. The well shows to be producing in section 20. Do I have a claim on royalties from this new well? Not sure if any other royalty owners in section 17 are in the same situation.

Permalink Reply by Skip Peel - Mineral Consultant on September 19, 2018 at 3:03

Although there is no "as drilled" well plat in the database at this time, the reported length of the perforated lateral indicates that the subject well is producing from Sections 17 & 20.  Yes, your unit encompassing Section 17 will receive its pro-rated share of production based on the linear feet of perforated lateral lying in 17.  I suggest  that you contact them again and assert your claim.  They can confirm you ownership interest in #240267 by your owner number.  If that doesn't do it, send them a copy of your lease and a demand letter by certified mail.

Permalink Reply by JTM on September 19, 2018 at 5:21

Will Do.. As always thank you for your help.

Permalink Reply by JTM on May 29, 2018 at 2:02

I did find the info I was looking for in SONRIS as you advised. thanks again. I'm still not savvy to the format. From what I can tell there is a well, number 250954, that has an effective date of 04/24/2018. I assume they are gong to drill this well. What is the average time from effective date to production. I was passing by the Taylor property yesterday and I c
ould see a rig derrick from Colquitt Road.

Permalink Reply by Skip Peel - Mineral Consultant on May 29, 2018 at 2:16

The Taylor 17&20HC #1-Alt (S/N 250954) with a surface location in Section 8 will drill south and produce from sections 17 and 20, if it is drilled successfully.  There is no way to know when the well will be drilled nor how long before it produces or pays royalty.  Best to check periodically to see when a rig spuds (spud = first day the drill bit hits the dirt).  You can then follow the drilling through periodic reports on SONRIS until the rig TDs (reaches Total Depth).  From there reporting will cease with the exception of a work order for the completion operations (frack).

The only rig running in the area you mention is Patterson UTI #586 which is drilling the Feist 20&17 HC #1-Alt for Chesapeake from surface location in Section 29 - 15N - 15W.

Permalink Reply by JTM on May 29, 2018 at 15:43

Thanks. Will do