Drilling unit vs production unit

There is an interesting discussion on the Ohio Landowners page re. drilling units and production units. If I understand it correctly, it is possible to be in a producing drilling unit and still not be paid royalties because you are not in a subset called the production unit. This is new to me as I thought that if your land was in a drilling unit, you benefitted from all of the wells drilled in that unit. Is this new or did I miss something in discussions about the potential benefits of being in a larger unit?

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Permalink Reply by matthew smith on March 21, 2014 at 10:43am

Hi,Just wandering if you guys have look in west virginia,harrison county mainly.I have lease with antero.These well legs down here average 9000-12000 feet.Looking in the court house the declaration of pool puts these legs(unit) at 280-300+acres a piece.Just curious how he pools,my lease says 640,but some these well pads down here have some 13 well legs.Does he pool individual legs or a couple together.I do see some have same names but differnt last#'s like 1h and 2h,just curious if he puts them together.Acres add up fast with these legs.Would appreciate if anybody has the answer.Thanks

Permalink Reply by Kathleen on March 21, 2014 at 1:44pm
Hi,

IH is one well leg, 2h is a separate drilled well. Up here, odd numbers means one direction while even numbers mean a different horizontal drilled direction. Each driller can decide how they number or letter a well so it might mean something different down there with your driller. If you look into a drillers wells, you will see a pattern pretty quickly.
Since your lease states you can only be in a max 640, from the numbers you stated you could only be apart of a unit that had no more then 2 wells or split between two wells (if they are pooling each well as its full unit) not exceeding a total of 640 mineral acres. You would not get anything from the other legs. This is a pad I wouldn't mind having my lease say 1280 acre unit allowed. Wow 13 wells!
I wonder since they drilled so many on this pad, that they weren't worried about trying to hold a lot of minerals with one well, so they just declared pooled units for each leg as they went along.
Permalink Reply by matthew smith on March 22, 2014 at 3:14am

Thanks Kathleen,thats what i was thinking also.

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