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Permalink Reply by Rita McConnell on April 7, 2009 at 10:08am

If an exploration and production company were to drill a horizontal well on your property that extended laterally under your neighbors property,that property would also have to be part of a lease agreement with that company.

Most companies try to sign leases with contiguous land owners, so that when they study the geology below in more depth, they can site the well(s) in the location that makes for the greatest production, and ultimately the greatest potential royalty for the land owners involved.

In the case of horizontal wells, which can extend horizontally as much as 8,000 feet or more, companies study the geology of their leases and "unitize" lessed land into a boundary where the well heads and lateral lines will be located. It often includes more than one property, but not always all of each property. So, potentially, a company could drill multiple wells on one landowners poperty, extend them horizontally underneath the property of neighbors, and all would recieve a royalty based on the number of acres they have under contract.

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Permalink Reply by Madelyn Shermeyer on April 7, 2009 at 10:25am

Thank you for your reply.
No guilt feelings necessary if my land were leased which I doubt it will be but that's OK too.

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Permalink Reply by Rita McConnell on April 8, 2009 at 3:31am

Always happy to help when I can.

You should think of your oil & gas rights as an asset to be managed. You don't have to apologize for wanting to develop them if you feel thats the way to proceed.

Good luck.

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Permalink Reply by Markus on February 1, 2013 at 6:02am

OK

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