How a drilling unit is paid out?

Does anyone know how they pay out a drilling unit? do you get paid on the percentage of land you hold in the unit or do you only get paid if your so many feet from the lateral?

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Permalink Reply by Kathleen on March 18, 2014 at 1:13am
Good morning mike,

Have you received your paperwork from the driller?
Have you visited your deed in the courthouse?
I'm going to assume no, since, besides a few wells in Carroll are all bigger then 126-200 acres.
Your lease like so many new ones say 640 acres for a reason. The driller needs to have bigger declared pooled units to hold more land with one well.
I cannot think of one driller who could hold their holdings drilling small units like that.
The ODNR will show your drilling unit, but only your drilling unit. It appears they do not care about the business side of this business, they only care about where the well is bing drilled.
This is confusing so many people. They find out their well name, go look on ODNR and only see the well platt.
That's not the finished unit.
No matter how you look at it your minerals were pooled with other minerals just to make that drilling plat.
I too once thought it would be great to be in that one smaller unit when that's how I thought it was done, but then I was shown different. If you were in this small unit, that's it after 18 months or so if they don't choke it.
Wouldn't you rather have a chance at 2 more drilled wells?
Permalink Reply by Mike Fulper on March 18, 2014 at 1:22am

Doesn't work that way...

Not in our area or with the Amarado lease...

Depends on how the company  "calls" the well

Drilling Unit... or Production Unit...

Clark well.. is DONE and paying.... just like I said...

Your not reading my info right....

Why would I want MORE people taking my $...

To be in a DRILLING UNIT is best.. period...

Let me explain something.....these wells.. will last

waaaaaaaayy longer then 18 months or 18 years...

They are not gonna dis appear...

Too much hear say out there....

Permalink Reply by The Rooster on March 17, 2014 at 1:14pm
Kathleen ..no i haven't heard anything for me as of yet.
Permalink Reply by Philip Brutz on March 18, 2014 at 1:30am

Mike, have you signed a division order yet?

Permalink Reply by Kathleen on March 18, 2014 at 1:33am
Mike,

I can't find a way to post under your post.
Good luck to you.
I'm going to stand by what I've said, since a driller cannot hold their holdings this way and you didn't say if or if not you have received your paperwork.
Your paperwork will be "a declared pooled unit", not a declared well unit/platt.
So many felt like you did about the wells, since the ODNR showed the well unit/platt. I went to the courthouse and looked up every well in my area to prove these 150-170 acre units were bigger. That's where I found "declared pooled unit" for every well that the ODNR showed smaller well unit/platt.
There is not one piece of science to say one well will last the time frame you are looking at.
Permalink Reply by Philip Brutz on March 18, 2014 at 1:38am

Kathleen, is the "declared pooled unit" available online?

Permalink Reply by Kathleen on March 18, 2014 at 1:46am
In my county it is. I'm in columbiana county. I'm not sure about other counties.
I can provide you with information needed to look up a few (basically on hundreds of mineral owners deeds) if you want. Just friend me. I'll give you last names and the courthouse link.
I feel funny posting people's names here without their permission.
In that paperwork you will see every land owner in the declared pooled unit. How much land was leased, how much of that leased land/minerals that is actually in the unit.
The drawing of the whole pooled unit. Then there is a ton of papers showing signatures of everyone who has a stake in this well. Some of this large packet is boring but parts of it is really interesting :0)
Permalink Reply by Kevin on March 18, 2014 at 1:59am

Kathleen is absolutely correct. I can look at the maps and see the drilling units, well plats, which absolutely means nothing. It is all about the production unit or pooled unit when you get division orders. The pooled/production unit I belong to is a unit of 411. It is this size because they can not drill to the south. The one drilled leg misses my property by 1000 feet yet I get royalties as do everyone in the pooled unit. The amount is all based on your decimal interest in the entire unit. They just drilled the second and third legs. Should be fracked and come on line by June. I will get royalties from all three wells.

Mike, Where are you getting your information from?

Permalink Reply by Mike Fulper on March 18, 2014 at 2:17am

You answered you own question.. your in a "production unit"  which means

your in a "pooled" unit

Now... the 2nd option is when a well is called a "drilling Unit"

then it is not "POOLED"

Everyone up north got sucked into these "production units"

Go to US LANDRECORDS.. pull up the clark well..  under EQT PRODUCTION

you have to look for it...

The whole thing is there plain as day.. read the paperwork.. it states the Clark well is a Drilling Unit and shows the % each landowner gets.. according to his acereage...

Pretty easy to see...

When they drill these horizontal.. they don't miss the Platt map by hardly

one inch....

The platt map is accurate for each well....

Permalink Reply by Mike Fulper on March 18, 2014 at 2:05am

Instead of going to a Court House... it is easier to go to US LANDRECORDS..

Look up the Clark Well....under EQT PRODUCTION...

shows the whole thing.....it is called a "drilling unit"....

It shows the % of each lease holder on what the % is they are gonna get

for whatever the well produces a month....

The FINISHED WELL is exactly what the Platt shows....

They HAD to call it a DRILLING UNIT because our Amarado leases STATE..

No pooling.. just 640 acre.....

Let me explain it easier..... IF .. there is  ONE WELL.. in a 640 section....

ONE... and it is called... a "production unit".... everyone gets a SMALL %....

very small.

.unless you own the whole 640 .. depends on your acreage of course...

 and the WHOLE 640 is held by production.... AND....it is possible

another well may NEVER be done.....so....

.everyone in that 640 is stuck with ONE small %....

One last thing.... people keep talking like these wells are gonna dis appear soon...

In our area.. ONE VERTICAL well.. in the SAME shale......produced for 65 years !!

and it only went 80 feet thru the shale...

and "sucked" out in that SMALL area for 65 years..!!!!!!!

NOW....the driller is gonna go ABOUT ONE MILE HORIZONTAL....

thru the SAME SHALE...?

One mile...... can you IMAGINE how much OIL is gonna be produced...??  think...

The landowner has NO SAY in what the well will be called.....up to driller..

The ONLY TIME the landowner has a say.. is when he SIGNS the lease and if he

is smart he will say NO POOLING if he can... most of the time.. its not.. in the lease..

In our situation.. we already knew .. we would be a DRILLED UNIT...

Go to USLANDRECORDS.. and look up the Clark well.....Guernsey county...

All of the New EQT leases will have POOLING allowed...

Permalink Reply by evan on March 18, 2014 at 2:14am

Mike I'm kind of in the same situation as you .  Let me explain.  Last fall CHK had a bunch of leases getting ready to expire they was waiting on one holdout. Well at the last minute they settled and put us all in a 639 acre production unit.  Ok so now they have their unit set up.. A month later they got a permit for one lateral and online this was listed as "drilling unit",  Each lateral will be set up as its own drilling unit but they all fall in place of the larger production unit .  I was set straight by Kathleen a while back and I checked with some, CHK, and my attorneys and they all said the same as she..  Good luck

Permalink Reply by Mike Fulper on March 18, 2014 at 2:25am

Well actually in my case.. if what you say is true..

im gonna get Royalties

from TWELVE WELLS....all in my one section...

Hardly think that will happen.. but I wont complain....

Again.. your in a POOLED UNIT.. we are not...

so in your case.. even tho it shows your wells as a drilling unit..

as all horizontals are called a "drilling unit" on the Platt map 

all in the POOLED area get a cut..

gets confusing huh  :)

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