HBP

Has anyone heard of a gas company being able to HBP all the land you have on a lease, even if it is in more than one section. I thought, if you had acreage in three different 640 acre sections, that they would have to drill on all three to HBP. Thanks.

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Permalink Reply by ELLIS HUGH on February 26, 2009 at 8:26
It is my understanding that,

If there is no horizontal pugh clause, all of the land on the lease will be HBP if any portion of the leased property is included within a producing unit.

So, no, they won't have to drill in all 640 acre sections to HBP all lands on the lease.

Sorry.

--EH

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