Replies to This Discussion

Permalink Reply by FXEF on February 12, 2011 at 12:13pm

Hunter,

Each mineral owner can do with his minerals as he wishes and signs his own lease.

• ▶ Reply

Permalink Reply by Steven R. Rothenberger on February 13, 2011 at 3:38am

FXEF

If the surface owner who owns 75% of mineral rights signs a lease and the 25% mineral owner does not do you think the O & G Co. would put that property in a unit or drill a horizontal on it?  if so how would the royalties be divided?  I have and estate next to my property and the Gas Co. whats to drill a well on them but only 2 of the 6 Heirs will sign the lease and the Gas Co. is telling me that they won't drill until they get the other 4 Heirs to sign and if they don't then I will not be put in a production unit with 2 Horizontals on my ground, any help understanding this will be appreciated.

thanks,

• ▶ Reply

Permalink Reply by FXEF on February 13, 2011 at 11:31am

Joe,

It's hard to say what the operator might do, because each state has different mineral rules. The size of the neighboring tract may also be a factor. The O&G company maybe saying they will not drill, in hopes that those leased will try to persuade those holding out to sign. Usually if the O&G company has leased enough land to form a unit, they will not let 4 mineral owners block the drilling.

The royalties are divided proportionally as to the number of mineral acres each mineral owner owns in the drilling unit. 

• ▶ Reply