I’ve received a lot of paperwork from Charles Helm/Casillas regarding two new wells on the Whetstone well in McClain Co. My question is about increased density and getting lease money. Casillas told me I won’t be getting any lease money since it’s held by production. I’m confused because I have a depth clause on my original lease in 2017. Ms. Barnes helped me with my lease terms back then. I thought that at any time they drill deeper in the formation that I was to receive lease money. Any thoughts on this is greatly appreciated. Relief Sought: Increased Density Legal Description: Section 25, Township 6 North, Range 4 West
No new lease. The density is for the same zone. Your depth clause most likely is below producing zone, the Woodford.
Check the wording on the depth clause. They are usually below the producing formation, not in the formation. it is to allow the release of formations below the first producing zone so they can be leased again.
I believe they are going deeper, that is why I ask. I realize its the same formation. I still don’t understand the increased density. If its increased to me that means just what it says. So are they suppose to pay extra in the case of increased density or was I told wrong a few years ago. Does it matter if the lease was signed 3 years ago or 10 years ago, etc. Sorry but I am still a novice in all of this jargon.
They are increasing the number of wells in the same formation. There will not be any new lease bonus. Your original lease will stay in effect for as long as there is continuing production.
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