Fellow mineral interest owners,
Continental Resources has recently proposed—and received approval from the Oklahoma Corporation Commission (OCC)—to create an unprecedented 3,840-acre spacing unit (six full sections of land) in Grady and Caddo Counties, Oklahoma, with only a single well planned. Traditionally, spacing units are commonly 640 acres (one section) or 1,280 acres (two sections). This drastic expansion threatens to negatively impact our rights and royalties.
Here’s why this matters to YOU:
- Reduced Royalties: One well for such a large area dilutes production revenue significantly, meaning fewer royalty payments for each owner.
- Lower Lease Bonuses: Larger units decrease competition for leases, substantially reducing lease bonuses mineral owners receive.
- Less Drilling & Competition: Operators can control vast acreages cheaply, significantly decreasing incentives to drill additional wells.
- Dangerous Precedent: If allowed to stand, other operators may follow, locking up large tracts of valuable minerals indefinitely, hurting mineral owners statewide.
- Immediately contact the Oklahoma Corporation Commission to voice your concern and opposition.
- Engage your legislators and make them aware of how detrimental this precedent is.
- Share your outrage with fellow mineral owners—encourage them to act!
Together, we can fight to protect the fair development of our mineral resources and our right to fair compensation.
Please join us in this fight—our collective voice matters!
-LandGuy
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I will start to follow this issue. Another thought is the potential for longer laterals, horsehoe development and efficient pad sites. I have seen some large units formed in CO for these exact reasons.
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I wouldn’t have an issue with the unit size as long as there is a drilling schedule indicating that they plan to drill additional wells. When protested at the OCC they stated that they plan to drill more wells but couldn’t provide a timeline for said wells. A local company took them to supreme court on this matter and lost to Continental on 1/15/25. It appears that within 1 hour of that verdict Continental filed for two more 3840 acre units in Caddo. Not to mention, they are not willing to offer a 1/4 in any of these prospects.
OK forced pooling can severely limit mineral owner negotiations during slow periods. If they are attempting to define new economic potential, then I can understand why there is a reluctance to provide timelines. Do you have an area in Caddo and Grady for these units?
What are the case numbers? I pulled a few of them but only saw 1280’s so trying to find the right one that said 3840.
Here is one of them that states the multiunit horizontal 2025-000104. Boxcars FIU 1-13-30XHW. Across three 1280s. Maybe that is what you meant.
Another 2024-0003248 across three 1280s. Centerfield FIU 1-20-33XHXW.
If you want to check one of the groups like this that are drilling now, look up the Omaha wells in 1S-3W and 2S-3W over in Carter. 18 wells lined up like cigars. They are angled to hit the fracture patterns in the most optimal way. Pretty sure CLR will infill all those sections, so not seeing a well in a couple of them right now may not be a concern. They are hugging the Woodford gas & condensate line that extends from Grady into Caddo and watching out for a set of faults.
Look up the mutli units for the Bess and Jane in the same line.
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This all first started in Grady in 19, 30, 31-8N-8W and 6, 7-7N-8W. The new filings are for 8N-9W in Caddo, I forget the particular sections in that filing as I was not an owner. Economic potential for Continental should not be a concern when filing for 3840 acres spacing. Also, keep in mind that they are drilling a non-standard drilling pattern on this, being Northwest to Southeast as opposed to the standard North to South lateral. They are not even penetrating two of the sections included in the unit, in fact I would argue that it would possibly only penetrate three sections due to the drilling pattern. I’ve spoken with numerous other industry leaders and professionals on this matter and I have not heard anything good about what they are proposing.
We are in 10N Section 27 and we are getting calls about leasing our 40 acres, Thunderbird Resources is one and haven’t seen them mentioned around here. Good to see activity in Caddo County in between Kaiser Francis to the west and Continental Resources to the east. Wish us luck!
Mrs. Barnes, unfortunately that is comparing apples to oranges as the formations in 2S-3W and 1S-3W show reason for drilling at such an angle. Those formations and the way they lay are not present in this prospect. When they proposed those wells they had a schedule indicating they were going to drill numerous wells. I believe this has now become an ‘acreage hold’ tactic and not to the benefit of the royalty owner. Their filings in Carter were for a total of two 1280s and not three as they are doing in Caddo and Grady. Like you, I am 4th generation in this industry and my family would be rolling in their graves with this one.
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You need to add your range as 10N sec 27 applies to several different ranges.
I think this whole discussion is about 9W. Am I wrong? I’m referring to 10N 9W.
Hi. I have approximately 5 acres located on Section 25-8N-10W could it be in or around this area? I have recently been approached by Grasslands Acquisitions to lease for $500 per acre and he says his client intents to drill. I leased this in 2014 with a different company at $1000 per acre with 3/16 royalty at 18.75 percent and the new offer he agreed to take that up to 19 percent. I’m pretty green to all this. Any input would be greatly appreciated. Lastly, he offered to write the agreement for a 5 year term and increase that amount to $900 per mineral acre. Thanks in advance for any reply.
