Replies to This Discussion

Permalink Reply by melissa humphrey on September 15, 2012 at 1:48am

THX----Wayne-tireless

Permalink Reply by LW on September 15, 2012 at 3:47am

Thank you!  Perhaps you can answer a question.  And hopefully make sense.  When we were initially put in a unit, we received the paperwork showing all of the well information.  That has changed, but we never receive anymore paperwork.  I realize that the units can change all of the time and wellpads are not assigned to just one unit.  I also  learned that there is going to be a lateral from another unit and well pad that runs through one of the units that we are in. So overlapping units?

Is there anyway of knowing when a change like this has been made to the unit?  Which well it is? If the lateral is spread across 2 units, then how do they determine who gets what? Can the unit keep changing even after production?   Lots of questions...

Permalink Reply by LW on September 15, 2012 at 9:25am

That should say 'make sense of my question'

 

Permalink Reply by Wayne Miller on September 16, 2012 at 3:14am

 At first CHK was sending copies of unit declarations to everyone affected when they were recorded, but they have since stopped. I think the only way to get this info now is to watch for amended filing in the courthouse. I have posted all of  the amended units that I've seen in the weekly updates to the units map. The latest instrument # is included in the info on the map.

I have not personally experienced the following, so maybe someone else can verify. 

After actual production starts they send a "division order". This typically happens about 120 days after production starts and you are paid retroactively to the start of production.

 As for overlapping units, I see a few especially in areas between TLM and CHK, but I would think those will be negotiated before production starts.

  If units are changed after production starts then new division orders are issued and royalities are then divided according to the new orders.

 Nothing in the past will be changed just from that date forward.

Permalink Reply by Stacey Hackett on September 16, 2012 at 9:41am

we received our amended unit papers last night on the Hopson unit, we went from 103 acres in the unit to the declaration page reading 82 acres unfortunatley who ever copied the amended unit papers copied everyone in the units wrong, so they are printed sideways and you cant read any of the total acreage or the acreage in the unit

Permalink Reply by melissa humphrey on September 20, 2012 at 4:44pm

Not 100% sure but fwiw we have noticed the gasco only sends the original division order. They make changes and changes but you may not get any more hard material unless your decimal interest changes significantly. Go to LANDEX, search name of unit* and new editions if declared will pop up. Buy it and see what has changed.

We have never heard of overlapping units.

Permalink Reply by Wayne Miller on September 21, 2012 at 7:54am

In the area of the border of Litchfield and Windham Twps, Comstalk (CHK) and Acres (TLM) also Senn (TLM) and Struble (CHK) units overlap according to the latest maps recorded in the courthouse. Only Comstalk 3H was producing in June '12. It goes under the Acres unit. The Acres 4H, 5H, 6H and the Senn 3H all of which were projected to go under parts of the CHK units permits have all expired or have been cancelled. I assume this means that TLM will amend those units before production.

 If you click on a unit in my units map the latest Instrument # is listed. Is Exhibit "A" in CHKs filing which shows owners- acres- acres in unit- etc the same as "division orders"?

Permalink Reply by LW on September 22, 2012 at 5:15am

Thank you for the answers.  I might have been wrong to say overlap.  What I observed was a lateral coming into 1 unit from another unit.  The well pad was not right next to the boundary.  It seems to me that since they could be pulling gas from both units from 1 well then it could be overlapping for royalty purposes.  It's not recorded yet, nor drilled and it may not happen, so still hearsay.  Do you know of this occurring in wells that are currently in production?