Living in Calif. I have a question as I have royalties in Scurry county. In reading the Snyder newspaper this week there was article about Cline Shale and I am wondering how this would affect my leases with Kinder Morgan & the SOCRAC . Would the Cline Shale be part of Kinder Morgan or a separate lease if on the same parcel of land?
It depends on whether you have a vertical Pugh clause in your lease, as to whether you can lease deeper rights.
James, Mr. Caldwell is correct. Read your Lease to know for sure if all of your minerals are Held By Production, or if only certain formations or strata are. Since the SACROC Unit includes arces which have been in production for fifty plus years, it's unlikely your Lease has a vertical Pugh Clause included in it. Though read it over to be sure.
If there is not a vertical Pugh Clause in your lease, then Kinder Morgan as the current unit operator, or possibly a prior Lessee/operator, would have to right to explore and develop the Cline Shale or any other formation.