I have spoken to two companies wanting to lease my Carter property. Both are working for companies that want a stake in the game but aren't working for a company that would be doing any drilling.
Attached is a lease spacing clause from the lease offer. Is the spacing standard? What are the chances of the 640 acre spacing changing to tighter spacing?
This appears to be the same clause I have had in previous leases that expired.
Thanks for any insight
Bryan
2236-Leasespacingclause.jpg (96 KB)Ryan
What is the legal description of your minerals. Most of the leases in Carter County have been for 640 as the oil companies are doing a lot of horizontal drilling.
Jeff
That is standard spacing language. And actually it is just saying that whatever the corporation commission decrees on spacing is what will govern. The commission is committed to 640 acre spacing, rightly or wrongly. Despacing is very hard, almost impossible to get done. If you want to avoid larger spacing units you HAVE to be there with an attorney to protest at the initial spacing hearing.
Thanks, Bob. This helps lot and makes me feel better.
Bob Titley said:
That is standard spacing language. And actually it is just saying that whatever the corporation commission decrees on spacing is what will govern. The commission is committed to 640 acre spacing, rightly or wrongly. Despacing is very hard, almost impossible to get done. If you want to avoid larger spacing units you HAVE to be there with an attorney to protest at the initial spacing hearing.
Hi Jeff. This property is 23/3S/1W
Jeff Palmer said:
Ryan
What is the legal description of your minerals. Most of the leases in Carter County have been for 640 as the oil companies are doing a lot of horizontal drilling.
Jeff
