When it comes to Allocation Well language in a lease, is it possible to put a minimum number of feet that must be included in the allocation well? We had a clause when it comes to pooling, the entire acreage (51) must be pooled. We had no such minimum stipulation in the allocation language, as such, the division order is a very small percentage. They only allocated 162ft of the property.
Denhawken,
The presence of “Allocation” language in leases varies significantly depending on the geographic area that the minerals are in. Would you mind sharing where your minerals are located?
Have you calculated what the division order would have been for the 51 acres assuming the unit was the same size? You would be surprised how you might come out better with an allocation versus pooling and vice versa.
Hope this helps!
~Rachel
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