If the well is located on my 40 acres, how is it that everyone in the entire section or 640 acre unit gets paid from that well?
How does that make since? If the operator is sucking the mineral from that piece of 40 acres, it is possible for them to get to Bob Franklin's 200 acres which is far far away from my 40. So how is it that Bob should get paid?
Please explain, I'm confused.
A well might be able to drain more than 40 acres, or might require the ability to drain more than 40 acres to be efficient and cost effective.
With horizontal wells, they may indeed get to Bob Franlin's 200 acres across the unit.
If your property gets drilled and is included a unit with Bob Franklin, when Bob Franklin's property gets drilled, you'll share in the proceeds as well.
If his 200 acres gets drilled?? lol What if they never put another well in the unit on his 200 acres? Then what? Is that just to bad for my 40 acres of minerals that have been depleted? Somehow that doesn't seem fair.
In terms of fairness, the field is probably tilted toward the oil and gas companies, but the rules and procedures, as imperfect as they are, are intended to help make sure minerals get developed and that folks can benefit. Lets suppose instead of 40 acres, you have 35 acres and your 1/3 step cousin has the other 5 acres. Your 1/3 step cousin realistically can't drill his own well without draining part of you, and you probably can't drill a well on your property without draining him. In Texas, in most areas, you would have to get a lease line exemption from your 1/3 cousin to be able to develop that 35 acre tract. Of course, if he understands he is going to be drained, he's probably going to want a piece of the action.
Moving on, I don't recall the specifics of your situation, but if you are in the Haynesville or Bossier, and the first well in the unit is productive Haynesville or Bossier, the rest of the unit will get drilled at some point in time. It may not happen in a timeframe meaningful to you, but if that unit has been de-risked, provided there is not some massive issue with endangered species or some such, it will get drilled and produced. Its simply a matter of time and gas prices.
The well is in the Haynesville.
And I just was wondering why through the years, every single well that has been put in the section has been on my families 40 acres. Is there nowhere else to put them? Just want to know how they come to the conclusion on where to drill.
Ken, maybe someone in your family, years ago, signed a lease that allowed the operator/s to use the land for pads; whereas maybe your family's nearby neighbors had ironclad leases which stipulated that none of their land could be used unless the landowner was fairly compensated each time.
If there are features that limit drilling in other locations, yours may be one of the best spots - high density housing, cemeteries, creeks, significant roads, pipelines, power transmission lines, etc can all limit in a unit where you might place a pad.