Unitization Question

If there is anyone out there currently in a production unit, maybe you can answer this question: If there are multiple shallow wells, currently producing within a unit, shouldn't everyone in the unit be receiving royalties off of these wells in addition to any horizontal wells? We have multiple horizontal wells (waiting for royalties to begin) and I would like to know if we are entitled to royalties on the shallow wells that are within the borders of the unit.

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Permalink Reply by Steven Gardner on August 18, 2011 at 7:56am
I am not in a production unit but I'll take a stab at this... The units on the shallow wells should be 40 acres or less (Ohio?) depending on the depth being produced and everyone in those units should already be receiving royalties. Now the rest of it is all in the lease.. are the horz wells under the same lease as the shallow ? The horz permits are a different unit (and different depth) and should be much larger... but if your acreage (or part) is in both units then you should get royalties from both units. Read the lease and look at each of the drilling units. What state are we in ?

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