What happens when bottom hole location is in different section than surface hole?

I just saw that another well has been permitted in our section but it shows the bottom hole will be in another section. Do we get the royalties, split the royalties, or do the bottom hole owners only get the royalty?

Views: 130

Reply to This

Replies to This Discussion

Royalty goes to landowners in section that the bottom hole is in.
Keep in mind that the perferations in the lateral will only be present in the section/unit where the bottom hole is located. That said, there will be for all pratical purposes no drainage of the reserves from the surface location is in this type of situation.

Only party that would receive any compensation from the non-producing section would be the surface owner who granted surface rights for the pad location.

RSS

ShaleBiz.com

Control Systems - Custom & Cost-Effective

Right Angle Controls is a provider of high quality, safe, and reliable control solutions, ranging from annunciator panels to safety-critical ESD systems to gas turbine and diesel/recip fuel controls. Our programmers have 20+ years of experience in PLC-based control systems, namely Allen-Bradley. We can provide completely integrated hardware solutions, or improve your existing software. Our in-house library of PLC software allows us to deliver Logix-based systems quickly and cost effectively.

advertisements