Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on December 21, 2020 at 10:09

Some in the business still use the term, CUL.  Whether a multi-unit well is called a CUL or an HC (Horizontal Cross - the state's official abbreviation) doesn't matter.  Well production is reported the same and allocated between producing units the same by the state.  Operators may treat that production differently on royalty statements by an adjusted decimal interest fraction.  It is possible that the comment refers to a well producing from two sections that are unitized in the same unit.  A ~1280 acre, two section drilling unit.  Those have become common but production is reported the same as a single section unit, no need for allocation.

• ▶ Reply