Lease Line distance

Shales Barnett Shale
1

Can anyone tell me how far the penetration point for a well has to be from a lease line (other than the one on which they are drilling) in order to keep from paying royalties? We have a particular abstract under lease and the penetration point for a well off our lease is 500 feet from our lease line. Shouldn't I be included in the Pool? The drill path does go away from our lease line.

2

I believe the stand off for this situation is 467' but may vary by specific field rules. Similar stand off footages for last take point and distance of horizontal from parallel lease lines.

3

Thanks PrZZZ. According to the TRRC plat on well API 337-35066 Our lease line of Abstract J. Hash is 330 feet from the Penetration point and 390 from the First Take point. This is just interesting to me especially since they seem to By-pass this abstract all together and include the A-Pea survey that runs along the west side of our lease and yet is seemingly disconnected. Any insight you can give on this would be greatly appreciated.

2259-ThomasAUnit2H.TIF (482 KB)
4

First off, I assume that you are leased to Pioneer.

Field rules here in the Barnett may be 330' stand offs - I know that some fields have footages that low.

Pioneer probably has this whole area staked out / platted out with units so as to best tap all their acreage - initially with 100% wells. Agree that the "A. Pea" survey doesn't make sense but it may make sense if you saw the entire picture as they have it laid out.

There is room here for many more horizontals on this unit when and if Pioneer ever wants to do that. Figure another 6-8 depending on the ultimate spacing pattern / plan (i.e. drainage areas per well). They may even have some ideas about putting locations on the far east edge of the unit in the A. Pea survey 7500-8000' laterals down the road.

But with all that being said, it is difficult to try to second guess what an operator's master plan is without seeing all their cards and being privy to all their inside info as to well performance and future drilling / capital expenditure plans.