Drilling unit?

Im not real sure how this is suppossed to work if it takes 640 acres to make a drilling unit does that mean all property in the unit has to be leased by the same O&G company?

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Permalink Reply by FXEF on August 27, 2011 at 3:09pm

Michael,

It does not always have to be leased by the same O&G company, however it will make things a lot simpler and easier to get your royalty payments. Usually agreements can be worked out, but I have heard of cases where the lessor has been left out.   

 

 

Permalink Reply by Steven Gardner on August 28, 2011 at 1:44am
I would think so unless its some kind of joint venture but I think that would be an unusual case. 90% of the drilling units I've seen permited in Ohio are around 180 acres. I've been told these will be re-permited to larger units as more wells are drilled on the pad.. But have not seen an example of that yet.

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