Is there always 640 acres to a section, or could there be less?

Is there always a guarantee that the full 640 acres will be used to divide the royalty? I understand our lease to read that it will be divided by what the lessor owns within the section. Do they sometimes only lease part of the section, or do they always lease the full section? We are nearly exactly on the dividing line of a section. Do we have to share with the adjacent section also?

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Oil & Gas ProPermalink Reply by Jay Murrell on March 11, 2009 at 3:46
BMW:

Until the unit is formed you will not share in any production. This well is just permitted though, (2/13/09) they might get the unit formed before they drill it.

Here's the formula for determining your interest in the unit, once it is formed:

your acreage/640(1) X your lease royalty = your net revenue interest (Royalty Interest)

Best ,

Jay

(1) 640 acres is the typical unit size, it could be larger. The actual size of you section is going to be 640 acres, more or less, but don't sweat that because it will probably be insignificant. Units size and Section size can get you confused so just focus on unit size.
Permalink Reply by BMW42 on March 11, 2009 at 3:53
Thank you again. Just a note - it is nice of you (and others) to take time out of your (their) day to answer my questions. It is truly appreciated.

Oil & Gas ProPermalink Reply by Jay Murrell on March 11, 2009 at 3:57
BMW:

We're (oil and gas types) just sittin' around waiting for the price of NG to go back up....:-)
it was a pleasure to be of service.

Jay Murrell

landownerPermalink Reply by kittycatmama on March 11, 2009 at 4:44
Jay, we have property in Sec. 21 t15 r14 desoto. Adjacent to it is sec.22 which is supposedly going to have 4 wells (rumor mill). That is davis property. Rumor mill also says encana will take part of sec. 21 to make a huge unit. Is there any place I can check on that

Oil & Gas ProPermalink Reply by Jay Murrell on March 11, 2009 at 4:49
Hi Kitty:

Let me see what I can find out on that.

Jay

Oil & Gas ProPermalink Reply by Jay Murrell on March 11, 2009 at 4:54
Kitty:

My source says that EnCana units in N DeSoto are going to be on a 640 acre pattern. They had proposed some larger in S DeSoto and Sabine.

Best,

Jay

landownerPermalink Reply by kittycatmama on March 11, 2009 at 13:00
Jay, can you find out any info on Sec. 7 14 14 Desoto? I have family who reserved mineral rights down there. Petrohunt had an old well in there. They cleaned the pad yesterday & hauled out all their tanks. Encana filed to be the operator in this section; however Chesapeake has 200 ac. leased which is where the petrohunt well was. Chesp. leased before petrohunt admitted they lost lease. Anything you can find out or anyone on here can find out will be appreciated. Petrohunt filed mineral releases for everyone in that section Mar.10

Oil & Gas ProPermalink Reply by Jay Murrell on March 11, 2009 at 13:08
Looks like the PetroHunt-Virginia Packert CV well in that section did not produce for a year, that's probably why CHK bought the lease, but who knows?

What year did your family reserve minerals?

landownerPermalink Reply by kittycatmama on March 11, 2009 at 12:30
so will the adjacent section that they drill into get paid? I have also heard that Encana has a HUGE Canadian rig on its way down here that will be the largest rig ever seen in this area. It will be able to do extra long laterals.
Note: Thanks to both Jays for answers. Kitty
Permalink Reply by Snake Stewart on March 11, 2009 at 15:06
I believe I have also heard this called a wellbore easment by Randy in a previous discussion.

landownerPermalink Reply by fox on March 11, 2009 at 13:37
Jim Krow---about building a pad in one section and drilling in another. Lets say the section line is 250 feet north of the pad. Now to drill north , what happens to the pipe that is in the ground in the section it was drilled from. I assume that they make the lateral turn, and the pipe will not be fracked in that 250 ft. Is this correct? And all the gas will actually be coming out of the northern section, up the casing of the section it was drilled in.

Oil & Gas ProPermalink Reply by The_Baron on March 13, 2009 at 4:55
It looks like they are also doing this to use the location more than once.

The location plats also stipulate that there will be no perferations within the 250 ft from the unit lines.

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