ROYALTIES

IF I OWN THE LAND AND MINERAL RIGHTS WHERE THEY PUT THE PAD DO I GET ROYALTIES FROM EACH ADDITIONAL WELL DRILLED?

 

 

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Permalink Reply by Carol on February 7, 2012 at 8:19am

Bill - these are all horizontal Marcellus wells in my unit  - 8 wells, 632 acres total in the unit.

 

Permalink Reply by Marinell on February 7, 2012 at 11:25am

Watch out, Carol.  You are going to get a few marriage proposals from the guys on this site.

Permalink Reply by mike4t on February 8, 2012 at 4:41am

Carol,

This is pretty disappointing news.... a lot of the estimates, even on this site are saying $10-$30/acre/day...... well above your $2-$3/acre/day actual royalty. Are your 2 current wells choked down or are they running full capacity @ 2.8 avg?

Permalink Reply by rat hole willy on February 6, 2012 at 5:12pm

we have been seeing pads split into 2 units, a north and a south unit, this happens when someone still has a contract thats has a max unit size of 640 acres. so  the " pad "  can be spilt down the middle 640acrs to the north and 640acres to the south or anything less that will get them to the next unit. u will only collect on the land u have in a unit. in this case the well heads would be at one end of the unit and not the middle.  

Permalink Reply by Billy Park Whyde on February 6, 2012 at 6:02pm

Try breaking that down a bit as to the effect upon a land owner. From what I could see is two individual units that would be treated as two separate units to deal with the acreage.  

Permalink Reply by bo boboski on February 6, 2012 at 11:25pm

What would stop them from declaring that each individual lateral bore & it's drainage area is the"unit" . even if the pad & their leased land would support 6 laterals. they could run one lateral, pay royalties to only those it affects,while all the other landowner's in their 640 acres get zilch?  They would have to wait for them to come back someday to drill again. ?

Permalink Reply by rat hole willy on February 7, 2012 at 12:10am

billy, thats is correct . 2 individual units. if u r in the south unit u get paid on the south well (s) if u r in the north unit u get paid only on the north well (s)

 

Bo, i dont see why they would want to do that, then they have to drill all 6 wells just to tie up the leases.

Permalink Reply by mike4t on February 7, 2012 at 5:21am

@UTICA SHALE

so you're saying that the one to five acres m/l that the well pad sits on could be in four production units? doesn't sound right to me

Permalink Reply by mike4t on February 7, 2012 at 6:17am

So what you're saying is that I could have a well pad on my property and possibly NOT be included in any production unit?

 

That also implies that the O&G cos could exclude any and all area around a well pad until the bore becomes horizontal and to where the fracing starts since this is not "producing"

 

If the well bore does not become horizontal for say, 1000ft, ie not producing, and there are bores in 4 directions(= 2000 ft x 2000ft) then the O&G can exclude 90+ acres from production?

 

REALLY ???

Permalink Reply by Carol on February 8, 2012 at 2:08am

In my area, there are a total of 3 well pads that are each split into 2 units - north and south.  All of the wells are on the same pad but there are two separate units.  I'm glad I didn't end up in one of these units - they are only drilling one or two on each unit and holding all of the acreage.  My unit was one of the last ones to have 8 or more wells drilled in this area.  All of those people are now held by production on one or two wells. 

Permalink Reply by marilyn ascani on February 7, 2012 at 3:38am

You can go to the courthouse and get a copy of the unit map.  It will tell you how exactly how much land you have in the unit. 

Permalink Reply by Billy Park Whyde on February 7, 2012 at 4:13am

When the production comes out in March I believe it will give us a better view of whats going on. I myself would rather be part of a 640 acre unit  with the total production divided upon the acreage the landowners have in that unit.  However if a unit does not need all of the 640 acres say I throw in 100 acres in a long rectangle where it is not neccessary say they used only 20 acres of the 100 perhaps the other 80 should be released if they do not inten on incorporating that into another unit, if that makes sense?

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