Same acreage in multiple units??

We have 148 acres within 2 units. The polling and unit declaration documents show 95 acres in one unit and 71 acres in the other. This adds up to 166 acres.  So can  the 18 acres be in 2 different units?

 

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Permalink Reply by Mark McGrail on January 27, 2014 at 1:19pm

I don't believe the same acreage can be in two units.Perhaps the acreage in one unit was amended when the new unit was created.

Permalink Reply by LewisClarku on January 28, 2014 at 3:57am
Good question In theory I suppose it could....it would have to be the same O & G company and would be dependent upon how the laterals run.
Permalink Reply by LewisClarku on January 28, 2014 at 4:03am
On a separate and related topic....what is the time between being notified that one's land is in a drilling unit and the actual placement of the drill pad? When you're notified do they tell you how much of your land is included as well as the size of the drilling unit? Thanks
Permalink Reply by Canter on January 28, 2014 at 5:57am

the unit I am in...the pad was put in last August 2013, three horizontals were drilled last Oct 2013,  I do believe that  they are either drilling laterals or preparing to soon. I received my unit declaration last Saturday Jan. 26th 2014. So who knows when anyone will be notified. My guess is, its when they get around to it.  good luck with your wells. (I do not live close to the unit so, I miss out on whats going on there.)

Permalink Reply by LewisClarku on January 28, 2014 at 4:11am
Is it possible to have a drill pad on your land and not be included in a drilling unit? Seems unlikely but I thought I'd ask....I'm trying to understand what are the "rules" for defining a drilling unit....do lateral runs from the well head simply have to cross under one's land? Or is there some other formula?
Permalink Reply by Mark McGrail on January 28, 2014 at 4:21am

Lewis,

There are some companies who are considering doing just this very thing. However, I asked that question of ODNR Chief Rick Simmers, he told me it would not be allowed.

But, if a land owner finds themselves in this situation they need to inform the ODNR.

A lateral does not have to cross under your land for your property to be included in a drilling unit.

Permalink Reply by Mark McGrail on January 28, 2014 at 4:30am

Lewis,

Section 1509.022 appears to allow this, and technically it does. However, it does not mean that the land owner does not have to be compensated. This will not be allowed by the ODNR as I understand it's position.

Permalink Reply by Harry E. Rose on January 28, 2014 at 4:56am
Would it not be possible if the laterals were in different sands?
Permalink Reply by pg guy on January 28, 2014 at 6:19am

I think Harry has hit on something pretty interesting. If landowner A leased only Utica, and was previously unleased for any other strata, landowner B leased only for Clinton, and landowner C leased for all strata, then a portion of landowner C's acreage could be unitized with B's acreage by an operator for a vertical Clinton well, and a different (even overlapping) portion of C's acreage could be pooled with A's acreage for a Utica horizontal well. 

Permalink Reply by lance on January 28, 2014 at 7:31am

Why must it be so complicated... Is it a way for them to get around paying you even when you're in a unit... I was under the impression that as long as you belong to a unit en you will be compensated according to how many acres you have in it regardless whether or not they cross under your land... And I thought the Utica was what we're all after any way.... At least here in Ohio...

Permalink Reply by Ron Griz on January 28, 2014 at 7:38am

I posted, the initial question.  Both wells/units are in the same, PA.  Marcellus shale.. and both units declared in April of 2013, by Anadarko.  They have just connected one of the pads to a pipleline in December. When looking at the drilling Plat plans it appears that one of the laterals from each pad come to within about 200 yds of  each other.   

Permalink Reply by James Young on January 28, 2014 at 8:10am

Yes, the same acre(s) can be in two units... (lucky you!!).  The NG Companies don't like to do it, and they may possibly Amend your units before production starts, but it sometimes happens.  So you'll get paid royalties for the same acres from two different wells.  95 acres/ total acres in that unit and 71 acres/total in the other unit, x your lease stated percent....    I have a neighbor that not only is getting paid twice on the same acre, but there are two unit maps for the same well number. the first one (#XXX) is 640 acres total size and the other (#XXX-A) is 480 acres, and many of the acres overlap .... pretty weird looking unit maps when you put them together.  It amounted to some leases restricted the Unit size to <640 acres, and the NG Company wanted a 1000+ acre unit from that well pad,  so they split the laterals and made "two units" from one well location. Bingo both units less than or equal to 640 acres... 

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