Replies to This Discussion

Permalink Reply by bo boboski on January 27, 2014 at 1:58pm

If you are officially "in the Unit",  then yes, you should get royalties. Even if the horizontal bore does not go thru your land. If the O&G co. put you in, then maybe one of the future wells on that pad will go thru you.

Permalink Reply by AT on January 27, 2014 at 3:48pm

William, 

    Did you get leased through DPS Penn/Chesapeake? They are in the area leasing up the smaller parcels near you, including the Bethel Church property, for the wells about to be permitted on the Hall pad.

Permalink Reply by williet57 on January 28, 2014 at 12:04am

Yes that is what we are working on now

Permalink Reply by AT on January 28, 2014 at 2:06am

Great! Glad to hear you are finally getting leased!

Permalink Reply by evan on January 28, 2014 at 2:24am

I think there's a production unit and drilling unit , can't remember the difference but im in a 639 acre unit .  They drilled the first well but before they did that they changed the unit to 137 acres , just enough for the first horizontal. So really  I'm in a unit but I won't receive any royalties until maybe they drilled nest in another small one hundred thirty some acre unit. Just because your in one of their drilling units doesn't mean you ll receive money you have to be in production unit or vice versa

Permalink Reply by LewisClarku on January 28, 2014 at 6:13am

Thats good to know I wasn't aware that there was a difference between a drilling unit and a production unit but that makes sense on some level....I've been trying to get some type of official / industry definition of what constitutes a drilling unit and maybe what you describe sounds logical....like the drilling unit is the surrounding lands around the drill pad site....and the further breakdown or finer definition is a production unit (which is contained inside the drilling unit) is the acreage where the actual lateral lines produce OG for sale.....sooooo if they drill the laterals that run under your land then you should be receiving royalties and if the laterals do not then you don't.....you still may be in a drilling unit....which is still hopeful that down the road they put in another pad or run laterals in your direction but you're still not receiving royalties....make sense?? 

Permalink Reply by evan on January 28, 2014 at 6:22am

The way I understand not all companies break it up like this. I'm in a Chesapeake unit and I ve heard they do it this way Alot but I know that some don't..  There May be areason why they do it like this just not sure why.

Permalink Reply by Kathleen on February 18, 2014 at 12:20pm

Hi Lewis,

Sorry, but the answer is no, it does not make sense. One big reason is the other mineral owners would go nuts. The scenario you described would give the people in the 1st well royalties but leave out the rest in the pooled unit.
The driller determines how big a unit will be. Lets say 600 acres. Someone surveys the area to draw up the 600 acre unit.
Any tiny drop of land/minerals that is within that 600 acres is now included in that 600 acre unit.
Every mineral owner is given a percentage decimal of their ownership in this 600 acre unit.
One well is drilled in this 600 acres measuring 150 acres.
Well is put in production.
Everyone receives their decimal percentage of royalties from that one well.
All 600 mineral acres are now held by production.
Another 150 acre well is drilled 3 years later on the pad and the 1st well is still producing.
Everyone in that 600 acre unit still receives the exact same royalty interest in the unit. Now the owners just hope more minerals are produced since they are receiving royalties off two wells.
This continues until all wells are drilled in that 600 acre unit.
The well does not have to be near, next to, or in your minerals. You just have to have minerals included in the 600 acre unit.
The ODNR only shows the mineral/landowners of the well, not the unit.

Permalink Reply by catt on January 28, 2014 at 1:27pm

AT....what county are you referring to.....Bethel Church and the Hall property.

Permalink Reply by AT on January 28, 2014 at 5:11pm

Harrison County, German/Green township.

Permalink Reply by LewisClarku on January 28, 2014 at 6:23am

Another question....if a drill pad is placed on your land does one receive royalties from everything that exits and is sold from each of the well heads....I've been told no....or is the well head site independent and what determines a production unit is land under which the laterals run and the drill head is simply the tool by which the production/ output is measured and royalties are distributed?  I wish someone could clear this up.

 

Permalink Reply by williet57 on January 28, 2014 at 7:46am

Thanks for all the above info,hopefully my attorney knows this

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