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?
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.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More