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 Barry D on January 22, 2016 at 3:53pm

How much acreage is in your property?

Permalink Reply by Rick S. on January 23, 2016 at 2:48am

I don't have a lot of acreage in the unit. In fact none of the laterals touch my property but one comes close enough that they are using 2.3 acres.  The total unit size is 536 acres.  There are 4 laterals coming from the well pad.  My original question was are my royalties (however small) based on the production of all 4 laterals or just the one that comes close to my property.  The well is being drilled by Antero in Monroe County. 

Permalink Reply by Barry D on January 23, 2016 at 3:49am

Rick,

What township?

On whose property is the actual pad?

Do you know a well name, permit number?

Permalink Reply by bo boboski on January 23, 2016 at 3:56am

Rick, we can maybe see that info on the ODNR site by bringing up the well and permit/platmap.May even list royalty owners info. BUT; since you have acreage in the unit, you should be able to get all your questions answered by calling Antero.

Permalink Reply by Barry D on January 23, 2016 at 4:03am

bo,

That's why I asked about the township.

I thought if Rick didn't know how to do this it would be faster for me to find the info.

Permalink Reply by Buckets on January 28, 2016 at 9:03am

The focus should be on whether or not your property is within a unit, not whether or not a lateral is nearby.  Whatever the production is in the unit, whether it be 1, 2, 3 and so on, laterals, you will get royalties off of each producing lateral but it is based on how much of your property is falling within the unit.  If you have 100 acres but only 50 acres of that parcel fall within the unit, then you only get royalties based on the 50 acres that's in the unit. 

It isn't unusual for units to be next to one another, so you could easily have one parcel that falls within many different units.

Permalink Reply by Barry D on January 23, 2016 at 4:19am

Rick,

Is the property - 3 tracts of land in Seneca Twsp on Crawford Hollow Road?

Permalink Reply by Rick S. on January 23, 2016 at 4:22am

Hi Berry, you nailed it.  I know where the laterals go, etc.  Just need to know if I will get royalties from all the laterals or just the one touching my  property.

Permalink Reply by KAS on January 23, 2016 at 4:27am

If all four laterals are in your production unit you will will get royalties from all 4 wells.  Our production unit is 3 wells; 519 acres and our acreage in unit is 28.5+.  2 of the wells go under our property and one does not.  We get royalties from all three wells in our prodcution unit.

 

Permalink Reply by Rick S. on January 23, 2016 at 4:30am

Thanks Kas, that about answerers my question.  Now just have to get Antero to use the other 130 acres.

Permalink Reply by Barry D on January 23, 2016 at 5:06am

Rick,

Here is the Plat for the Kurtz Unit 1H

You can see in the top left corner your property that has been included in the unit, a 1.93 acre pc and a .335 ac. pc. The Plat indicates that the unit is 536.741 acres and there may be as many as five wells.

If the Drilling unit of 536.741 acres is also the Production Unit you will receive royalties for all wells included in the Production Unit. Even if the actual well bore of each well does not touch you property.

Confusing isn't it?

If your lease includes all of your property and there are no Pugh Clauses (or similar unitization clauses) all of your property will be HBP by this unit. Even though at this time only 2.265 acres is actually in the unit.

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Permalink Reply by Rick S. on January 23, 2016 at 9:13am

Thanks Berry, that is a much better plot then what I received from Antero

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