Dye Well

Does anyone have an update on this well? The last I heard, both laterals were put into production in March and we should have gotten our first royalty check this month. Does anyone have any info on this well and what is going on?

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Replies to This Discussion

Permalink Reply by TM on September 8, 2014 at 2:07pm

I looked at the 10H plat map. Kelly it says you have 5 acres in the 10H unit as far as royalties go. Below is a link for the 10H lateral plat map. It also has a list on the map of all the royalty owners in that well.

http://apps.ohiodnr.gov/mineral/oil/MRMImages/17/2/243376.pdf

Permalink Reply by Kelly Young on September 8, 2014 at 2:19pm

Thanks. I wonder why Rose Chestnut and Matt Young are not listed on this map you posted. You can see my land is behind theirs.

I knew I was on the 10H lateral, just trying to figure out why no one has gotten paid for it yet. It's been producing since March, hasn't it?

Permalink Reply by TM on September 8, 2014 at 2:34pm

I am not sure when it went into production. It shows production for 16 days for the 1st quarter of this year at 455 BO, 37057 MCF of gas. If someone got paid from this well look on the royalty statement and it will say what months they were paid for on the stub.

As far as landowners in the well, it is better to go to the courthouse and find the declaration of pooled unit map there with your lease. It will show the full acreage of the unit as well as all the royalty owners in the unit.

Permalink Reply by James Foster on September 8, 2014 at 4:50pm

TM,  This is not the production unit for this well.  This is the ODNR unit acre permit drawing for 10H.  This is submitted to ODNR at the time a permit is applied for to document A) that the well will be set back from non leased landowners according to ORC.  And B) that all landowners in this particular drilling unit are leased.  If not then at that time a forced pooling hearing would be requested and applied for and $1000 paid. This list of landowners does not have a list of everyone who will receive payment for this well.  It also does not indicate if all or some of your property is in the unit. This map shows that some of our land is in this unit when in actuality all of it is in this unit as per Declaration of Pooled Unit.

The Declaration of Pooled Unit that is on file in the Columbiana County Recorders Office is the document that lists all the landowners who will receive payment from not only 10H.  Most of the landowners in this unit should have received a copy of this if they had an ALOV lease because it was required in the lease.  If not you have to go to recorders office and get a copy or ask Chesapeake to mail to you and maybe they will. Division Orders I believe are the same as this Declaration of Pooled Unit and the name/term may be unique to a state or a driller.  Many people in this unit have received an initial check for part of Mar, Apr, May in late July and then for June in late August.  They did not receive any division orders nor did they sign anything or at least the ones I know personally.  The DPU documents were mailed out a year ago in the 2013 around March if I recall.

The unit for 10H, 8H, and 6H is approximately 640 acres.  The exact amount is on the DPU document.  Everyone in this production unit will be paid from all three wells at the rate in their lease and in the proportion of their acreage/total acreage, minus any deductions, net or gross as stated in each individual lease. 

I think that many people on this site are confused by a "drilling unit" and a "production unit".  On these maps of you read Notes: #2 at the bottom of the page it specifically says "

Permalink Reply by James Foster on September 8, 2014 at 5:20pm

I think that many people on this site are confused about the difference between a "drilling unit" and a "production unit".  On these maps (from ODNR) if you read the notes at the bottom right of the page you well see that it says

#2 THE DRILLING UNIT BOUNDARY SHOWN IS INTENDED TO COMPLY WITH THE DIVISION OF OIL AND GAS RESOURCES MANAGEMENT SURVEY PLAT REQUIREMENT IN ORDER TO IDENTIFY THE SETBACK DISTANCE.  THE UNIT BOUNDARY SHOWN IS NOT INTENDED TO INDICATE A UNIT FOR PRODUCTION PURPOSES.

#3 UNLESS OTHERWISE INDICATED, MINERAL RIGHTS FOR PROPERTIES THAT ARE CONTAINED WITHIN THE SETBACK DISTANCE BOUNDARIES ARE ASSUMED TO BE HELD IN FEE SIMPLE (aka leased) IN ORDER TO SATISFY THE DIVISION OF OIL & GAS RESOURCES MANAGEMENT REQUIREMENTS FOR THE WELL PERMIT APPLICATION AND SURVEY PLAT.

Permalink Reply by TM on September 8, 2014 at 7:14pm

I know it is not the production unit for the well. I never said it was. I said to go find the pooled unit map at the courthouse to know for sure.

Permalink Reply by James Foster on September 8, 2014 at 8:04pm

But you did say Kelly had 5 acres in this unit based on this map and that is NOT a true statement because this map has nothing to do with our production unit. Are you in this unit? This drawing shows less than half our property in the drilling unit but DPU shows all of our acreage is in the unit. Just trying to clear up any misinformation for those who are actually in this unit. Your map just adds to confusion. You also said all the royalty owners in this well are listed. Also NOT true statement. The entire unit is 640 acres and all landowners will receive royalties from this well not just the 147 acres shown in your map.

Permalink Reply by Kelly Young on September 9, 2014 at 8:50am

I just called CHP and spoke to Adam. He said the division orders for the south unit were just sent out yesterday.

Permalink Reply by Kelly Young on September 9, 2014 at 3:31pm

Also got an email back from them:

"We show your first check will be issued at the end of this month back to first sales. We don’t know the amount yet since checks aren’t posted until the last week of the month."

Permalink Reply by Kelly Young on September 11, 2014 at 7:52pm

Received the division orders today and have some questions:

- What does Unit Interest mean?

- In the pooled south unit paperwork I have, the map shows my grandma has 35 acres but 27 in the unit. Her division orders shows net acres as 18.xx acres. Should she contact them about the other 9 acres or is this correct?

- My sister has 6 total acres of land. In this unit, she has 4.xx acres. In her division order paperwork, she received it for the 4.x acres and another one for 13 acres. She doesn't have 13 acres. Should she contact CHP?

Permalink Reply by James Foster on September 22, 2014 at 3:16pm

Anyone receive their division orders for this well over the weekend?

Permalink Reply by Kelly Young on September 22, 2014 at 3:20pm

I received mine on the 11th

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