Looking at Yoakum County TX - Sec 41, Bk D - Well 33382. Would Royalty owners in this highlighted section get payment? Where is the actual drilling happening? And where is the oil coming from?
Sorry for such a basic question.
If my understanding is correct and these are allocated wells in Texas. If a person owns in the green areas ( more variations than shown), the answer is yes based on a % wise of the wells. If they fall outside into any part of the Red areas ( more variations than shown), those areas do not apply, only what would be in the Green areas. I did not show all variations, but I think this shows how it works. Use a grid that applies N, W, S, E to any part and its sub divisions the same and I think you may understand it. The actual drilling starts where the Pentagon shape (FTP) shows up on the map and goes to the other end of the line, the round dot. (LTP). Unfilled round dot means it is permitted but not drilled and not producing, green dot means it is drilled and producing. I hope this helps?, As far as Pooling, I am not sure of it. MK
This really helps!! Thanks!
Since my Deed says we have our interest % of the complete Section, when (if) those two well start producing we would get royalties from each . . . correct?
Yes that is correct. If you have the full section (all 640 acres) as a base for what minerals you own, then any wells that are drilled or pass through the section will be to your advantage. Percentage wise is unknown, as I do not know the lengths of the wells, your percentage of what and whether they are pooled or allocated wells. Usually after production starts you will receive Division Orders for those wells, around two months after production and your first check will reflect those months plus some as it will take about 4 months min to get in to pay status, then you will receive a check per month, based on the previous month for Oil and two months in arrears for Gas unless more wells are added and they temporarily shut them in to protect them. Enjoy the ride 
MK
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Thanks Mikro1TX!! I’m learning so much thanks to people like you!
Sorry to say, the well you asked about was never drilled and the drilling permit expired 2+ years ago. The other permitted location shown on the map you posted also expired without being drilled.
Well #33382 was permitted in April, 2018 and Windy Cover Energy got two extensions on the normal two year expiration date by which they would have had to begin drilling but ended up letting the permit expire on 12/31/20.
The way horizontal wells are shown on RRC’s GIS map often doesn’t reflect the way the laterals actually run and it doesn’t show where the first perforations (take-points) are located so it’s better to look at the plat the operator files when they apply for the drilling permit.
The plat below shows the drill site for the well you asked about was supposed to be in the adjoing section north of 41, just across the line in Cochran County, but the first take point for production would have been at the north end of Section 41 and the last take point at the south section boundary. The permit application shows the unit would have included 560.1 acres, and it wasn’t being drilled as an allocation well.
Regarding your question about where the oil was coming from, the permit was to go to a max vertical depth of 6000’ with the horizontal leg to be in the San Andres formation. The other well that Henry Resources had permitted in that section in 2016 but never got drilled was also supposed to target the San Andres.
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Thanks for digging deeper Dusty, I was just answering based on what he asked about how it was shown. I did not look into the specfics of the wells. Duh, I am such a DA. LOL
MK
Dusty1 . . . I just saw all those thousands of dollars pass pass before my eyes!!
Looks like I need to learn: 1) how to find and retrieve drilling permits, 2) how to determine if a permit is still valid, 3) if the well is being drilled and 4) learn about the different types of wells (regular, allocation, etc.),
I tried, but this is "a swing in a miss” . . . STRIKE One!!
I can’t thank you enough for taking to time to help in my education process. This is a tremendous help and points me in directions I never knew existed! I owe both you and Mikro1TX a huge debt of gratitude! Thanks Again!
Dusty1 . . . I believe I have found most of the information you shared! Thanks for the lesson!! Plus, Professor Google as helped me learn what an allocation well is!! I’m rollin’! Slow but sure . . .
Mikro1TX . . . You may be a lot of things, but you are not a dumbass!! You help me a lot!!
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Great. You understood how to find the area you were interested in on RRC’s map and a lot of well information can be accessed from there. If you didn’t locate that plat, go to the permit and look for the attachments at the bottom of the last page.
Figuring out if a permitted well is actually drilled can be tough unless you have access to a subscription service. Lots of operators fail to add spud dates to their permits and don’t get around to filing completion reports until long after what are supposed to be RRC’s deadlines. Checking RRC’s online production reports for wells the operator reports in pending status, or checking the Comptroller’s site (CONG) for first sales numbers, is often the only way to know if production has started.
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