How to get entire farm included in well royalties?

I have a 50 acre farm that I want included in a well after I lease. I want the whole 50 acres included in a well in order to maximize my royalties after a well is drilled. How do I accomplish this? I know anything can be put in a lease but has anyone had this stipulation included in a lease? Any ideas will be greatly appreciated. Thank you.

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Jim ShoosPermalink Reply by Jim Shoos on February 27, 2012 at 10:15am

Its called an "inclusion clause", which essentially provides that either all, or a specified percentage of your property must be put into a unit.  One word of caution... if an operator faced with having a lease with an inclusion clause, might opt to leave you out of the unit entirely rather than having the flexibility to include only the portion that makes sense to them.   Most leases have limitations on the maximum size of units and using your example of having a 50 acre lease, if an operator were within 30 acres of having his maximum size unit already established, he might just pencil you out entirely since having to include your entire 50 acres would put them over the limit on maximum unit size. 

Permalink Reply by oildude on February 27, 2012 at 10:18am

Jim

I had not thought of that angle. Thanks

Permalink Reply by Billy Park Whyde on February 27, 2012 at 12:10pm
If you were a member of a landowners group it would probably not matter as they have your lease paid for. My concern would ne the size of the unit.
Permalink Reply by oildude on February 27, 2012 at 12:58pm

I will probably lease with about five of my neighbors ( about 1000 acres) but my land is on an outside corner of that land mass so im not in a very good position when they start drilling. How can I make the most of my situation?

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