I could use some help here folks! My family has a very small mineral interest in a 320 acre tract of land (3%) in Texas. We've had an Oil and Gas Operator call several times about wanting to lease our portion and we have just not committed yet. The operator claims to have 97% of the minerals already under Lease. If we choose not to lease can the operator legally proceed and drill a well without us signing a lease? The wells in that area are shallow and are usually smaller spacing (20 acre-40 acre). So, the well more than likely wouldn't be pooled with any other tracts.
The short answer is yes, the operator can go ahead and drill the wells on the tract. What would likely happen to you is that you would become a non-consenting cotenant. Here you would receive no royalties until the well has paid out. Then you would receive from that point forward undiluted royalties after expenses. This would happen on each well. If the wells never pay out, you would never receive any royalties.
If the oil Company has gotten approval to place it in an approved pool they can. That is in Oklahoma and I would expect the same in Texas. Also,if they have a old lease that applies to you, they can if that old lease is still good?0r currently producing.
I don't believe however they can actually drill on your surface if not leased. Your interest in the mineral will be held in suspense or treated as the pooling order allows.
Yes they can. The mineral estate is the dominant estate and as such had the right to come and drill, explore and remove minerals. He said that he owned 3% of the minerals with the balance leased. ANY mineral interest can drill a well.
Also, what do you mean by pooling order? He said his lands are in Texas, not a forced pooling state like Colorado, Oklahoma or Arkansas.
Most leases have a pooling clause whether the state applies integration or not.
Rereading the post then the ownership is a partial interest of a larger tract and thus, you are a very subservient interest with no executive control. I was thinking of the surface interest. If you own 10 acres of 320, and there is no lease, then they cannot site a well on your surface property. And yes, in many states you would be pooled and forced to participate in the unit. And if you don't in a no-pool state, then your risk being fenced out permanently making your minerals worthless.