Chesapeake to SWN

Recently part of our lease was sold by CHK to SWN. Still trying to get all the details. My question is this:

If CHK drills, and our entire property is in the pool, what happens to our royalties? Do we only get for the acreage CHK holds? Or does SWN also pay for the acreage they hold?

Views: 635

▶ Reply to This

Replies to This Discussion

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on August 23, 2013 at 6:50am
The royalty comes off the top of production regardless of who owns and operates the lease or leases within the unit.
Permalink Reply by Erik Mahler on August 23, 2013 at 7:02am
So we'll still get the royalty % for all the acreage in the pool regardless of who owns the lease or who drills the well?
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on August 23, 2013 at 7:30am
You will get the royalty that you are entitled to per the lease for each of your acres that are included in the production unit. It doesn't matter who owns what leases within the units (and its not unusual for there to be multiple owners).
Permalink Reply by Gringo on August 23, 2013 at 7:07am
Need details to really explain. Most of these assignments are filed under a blanket assignment, not under all the individual parcel/persons affected. You can get a copy from the courthouse. Assignment language varies greatly. I have seen companies reserve certain formations. Your Q is a little confusing, but the short answer would be if CHK drills they are the operator and payor. It is possible 2 companies have units next to each other splitting your property and each would operate and pay their unit. Get the details it will probably clarify what the different situation could be.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service