If a LOCATION EXCEPTION is filed and the order approved- does that automatically change the unit area?The initial unit size was 640- Location Exception filed now showing 660. (Bottom hole is in the 640 unit- take away point is within the 660) Does that mean you are now part of the unit and should receive royalties?
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I believe you need to read the Order again. My guess is the 660 you are referring to is “feet” as in the wellbore can not be any closer than 660’ to the unit boundary line. If your minerals are within the 640 acre unit, yes, will receive royalty if production is established and you actually own the rights to receive royalty.
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The local exception will generally apply to the the drill site surface location. This should not affect unit participation.
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A location exception has to do with the wellbore’s location in the target formation and nothing to do with surface location.
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@TODD_M_Baker Both can be correct. This is the OCC rule as to Horizontal.
Key points about an OCC horizontal well Location Exception: Justification for exception: Common reasons for seeking a location exception include complex geological formations, maximizing reservoir recovery, or addressing surface constraints.
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Thanks so much- I will read it again.