Question, re: multple laterals/royalties

The way I understand it is you have one vertical well that several laterals that branch off from it.  If only one of those laterals touch your land do you just get royalties from that single lateral or do you get it from all the laterals?  It seems that all the laterals feed into one place.

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Permalink Reply by KAR on January 23, 2016 at 1:30pm

That's the plat used to permit the well, not the as-drilled plat. 

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Permalink Reply by Robert Odenthal on January 27, 2016 at 4:20am

You should only get from the lateral and its allocated production from the area that it drains related to your property. The other branches are draining the gas from other landowners. 

Permalink Reply by Rick S. on January 27, 2016 at 5:00am

Robert, that brings up another question.  I have one lateral that touches my property yet the unit is 536 acres which I am assuming encompasses all the laterals.  If I only get royalties from the lateral touching my acre why then am I being told the total unit acres is 536.  Would not it be less  if I only get income from one lateral?

Permalink Reply by Barry D on January 27, 2016 at 5:05am

Rick,

It would be less

But, the other laterals aren't drilled and in production, right?

Who is telling you This?

Permalink Reply by Barry D on January 27, 2016 at 5:07am

Robert,

Royalties are based upon the production unit. If Rick's property is a part of a 536 acre production unit he will receive a proportional share of all oil and gas produced. Doesn't matter that some and probably most will not come from his land.

Permalink Reply by KAS on January 27, 2016 at 7:28am

Agree with Barry.  That is how we are set up with on a joint Rice/Gulfport well.  2 wells go under us; one doesn't.  Our production unit includes all three wells and we get royalties from all three. 

Permalink Reply by DESJR on January 28, 2016 at 1:50am

KAS if none go under your property and you are in a unit, you still get royalties regardless?

Permalink Reply by KAS on January 28, 2016 at 4:47am

Yes as long as your land is in that production unit you get a percentage of the wells in that unit.

Permalink Reply by Buckets on January 28, 2016 at 9:08am

This is not true. You don't have to have a lateral run directly under or touching your property to receive royalties off of all the laterals.  If the person has signed a lease they will receive royalties on all producing laterals and the royalties will be based on how much of the parcel falls within the unit.

Permalink Reply by Buckets on January 28, 2016 at 8:54am

You get royalties off of any laterals that are producing as long as you signed a lease and your property falls within the unit.

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