Can Devon drill under our property without our consent

[Rick_Carter]

We have been in a Devon unit totaling 87 acres for several years. We received a notice from Devon that an allocation well (also a Devon well) was drilled on another property (a 297-acre lease), resulting in their lateral lines crossing onto our property. The lease is subject to a production sharing agreement which provides for a bird’s eye calculation methodology for allocated production. They are only paying us for the footage of lateral length that crosses our property and not including us in the total 297-acre unit. They have sent new division orders for us to sign.

Is this legal? Can they do this without our approval?

[TennisDaze]

Answer depends on the state where the wells are located. Also, are you talking about a unit which contains 87 acres (vertical well) or a larger unit in which you own minerals under one tract of 87 acres? Is your lease subject to a DPU (Declaration of Pooled Unit) or a production sharing agreement? These are very different legal instruments.