A well plat or pool is set up with the pad being somewhat central in the pool. A well is drilled and goes in a southerly direction. The well plat is set at 524 acres.
Several months down the road another well is planned for the same pad but it goes in a northerly direction. Can the driller then say that royalties on the second well will include only some of the original acres? Say 435 acres not the original 524?
I just got copy of a permit for the second well that shows this. I am in the first well but not the second.
Can this happen?
thanks
Tags:
Stan,
Joe and Fang are right on the money. Most leases have language allowing for unit changes at gas companies sole discretion.
We are in a unit that was split into a north and south sections 500 plus acres in each and we receive royalties from the three wells that have bottom hole locations near our property line the other three in the north unit we receive zero royalties
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