Replies to This Discussion

Permalink Reply by Chris on September 11, 2013 at 4:20am

If they enter the shale under your property, than you should be getting royalty.  Many wells are being back drilled so they can enter the shale almost directly under the surface hole

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Permalink Reply by Donald on September 11, 2013 at 2:25pm

I do not understand this can someone explain it in more detail? if the lateral goes north west, and their is 10 landowners in the unite, I am only getting paid for whatever acreage I have in the unite. if I have 50 Acers, I might just have 10 acres in the unite. if another lateral goes  south east, I might not have any acreage in it. so if their is eight wells on the pad., how am I being paid? am I looking at this wrong?

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Permalink Reply by Chris on September 11, 2013 at 2:29pm

Each lateral is considered its own separate well. You can potentially be getting paid by multiple eells drilled from the same pad..ie the Donald 1-2h, Donald 1-2h, Donald 1-3h.

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Permalink Reply by Donald on September 11, 2013 at 2:39pm

if a lateral is not under my property, how am I being paid?

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Permalink Reply by TM on September 11, 2013 at 2:47pm

You get paid if you are in the unit. The bad part is you could have a lot of acreage but they might not put it all in the unit. If your in a unit with say 3 wells you will get paid from all three. Everyone in the unit shares in the royalties. You can also be in more than one production unit depending on how your land is situated.

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Permalink Reply by Donald on September 11, 2013 at 3:04pm

if I have 50 Acers and the pad is on the SE corner of my 50 Acers and the well lateral goes SE off of the pad, I'm not in the unite... is that right? so with multiple wells on the pad, how would I be paid? 

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Permalink Reply by Chris on September 11, 2013 at 3:08pm

It depends where they enter the shale. If they back bore they can enter the shale directly under the pad, and you would be in the unit. If they enter the shale off your property, than you might be out of luck

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Permalink Reply by Bob Byler on September 11, 2013 at 3:00pm

Donald, if the Pad is on your land you will receive royalties from each well drilled, according to the acreage you have in that unit. It is possible to have only a fraction of an acre of your land in a unit though, if they drill from the edge of your land away from it. A neighbor of ours wouldn't sign anything until he had a signed agreement that his entire 140 acres would be in a unit by the time the permits expired. They agreed. In fact he is in 3 units from the same pad. 9 wells so far & split units. So yes! Be careful if you haven't signed yet. They could be on your land for yrs. & be paying you peanuts while the neighbors are running to the bank with wheelbarrows!

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Permalink Reply by Donald on September 11, 2013 at 3:13pm

Bob

I understand what your saying, but seems I would want a overriding royalty on any well drilled on the pad, even if I am not in the unite.

do you know if their is any lease langue that covers this?

 

 

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Permalink Reply by Bob Byler on September 11, 2013 at 3:21pm

I've never seen a lease initiated by the companies with that in. You would have to add it. PLEASE take this humble advice. Get a good OGM attorney. I've been through this for the past 6 yrs. in PA. The gas companies are ALWAYS 5 steps ahead of us landowners. They've been doing this for over 150 yrs. with a battery of attorneys. Having one of your own helps level the playing Field? He will pay for himself 10X over!

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Permalink Reply by Donald on September 11, 2013 at 3:24pm

Thanks Bob, I just don't want a pad on my property without being paid for every well that's drilled on it.

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Permalink Reply by Bob Byler on September 11, 2013 at 3:32pm

You are wise! You are thinking ahead. Stick to it, but the wording is the key. Believe me, something written by a layman WILL be twisted by them. I guess one calls that "the business world." Good luck!

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