How is it determined who and how gets royalties off the pad site?

Please explain

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Permalink Reply by John Smith on May 10, 2012 at 2:55am

so a well pad will have the six well bores all within 500 feet radius?  1000 feet diameter?

Permalink Reply by Clinton44 on May 10, 2012 at 3:02am

Yes that is a good estimation for distance between well bores of about five hundred feet. A few pads i have seen  do have more than six wells per pad, some go as high as 10 or 12 whether they drill all wells that they have permits for especially with gas prices being so low who knows...

Permalink Reply by John Smith on May 10, 2012 at 3:04am

so the rectangle they talk about is 1000ft x what?  they go about a quarter of a mile under ground? away from center of pad?

 

Permalink Reply by Clinton44 on May 10, 2012 at 3:07am

They go about a mile underground and then hotrizontally away from the center of the pad usually in PA it is in Northwest and sotheaterly directions

Permalink Reply by John Smith on May 10, 2012 at 3:17am

do you know of a well bore map online?  picture to look at?  example

Permalink Reply by Clinton44 on May 10, 2012 at 3:25am

The link below has a good description of a drilling unit as well a picture of a well plat

 

http://gomarcellusshale.com/forum/attachment/download?id=2274639%3A...

Permalink Reply by david plumly on May 10, 2012 at 3:04am

Ok if this unit is layed out and you dont sign a lease and you have 50 acres in this unit can they drill with out you or will they drill and send you a check for  1/8 ? Or do you hold the project?

Permalink Reply by Kathleen on May 10, 2012 at 3:10am
I do not know what state you are in. In Ohio they cannot drill under you without your knowledge. They have to stay 300 ft away from your property line there is a bill trying to get that to 500. Forced pooling is not to easy since they have to show the offer, when they were presented to you and what you decided. They have to have 90 % of the unit leased before they could even start the forced pulling application.
Permalink Reply by Clinton44 on May 10, 2012 at 3:10am

In PA there is no forced pooling we are in PA , not sure about Ohio I think they have forced pooling then they pool you and you get the minimum royalty. In the one unit we are in there was a lease holdout someone who was opposed to drilling they basically offered them the world on a silver platter still would not sign, so they reconfigured the unit and drilled around them much to the dismay of some of their neighbors who were cut out as well!!

Permalink Reply by KFS on May 14, 2013 at 1:42am

Great information. Thank you. 

Permalink Reply by John Smith on May 10, 2012 at 4:38am

mahoning county, ohio

Permalink Reply by Chris on May 14, 2013 at 2:50am

I do this everyday, so maybe I can put it simply:

John Smith owns 100ac.  Lets just all 100 acres are included in the unit which is 1280, and he signed for 20%.

(1.000(being interest in his property) X 0.20 )  x (100/1280)

 

0.20 x 0.781125=0.015625, or 1.5% of the Net profit interest in the unit.

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