I am a mineral rights owner of property in Mountrail County ND. I received a Notice of Hearing concerning a well that was drilled in a 1280-acre unit next to the section containing our property. Noted on the Notice of Hearing is the following: "That current field rules and well location rules for the Subject Lands require “the lateral, heel portion of the lateral, or toe portion of the lateral in horizontal well bores shall be no closer than 500 feet to the most nearly parallel spacing unit boundary.” It goes on to request an order to allow this company to continue to produce a “well with portions of the lateral located approximately 495 feet from the east line of an existing 1280-acre spacing unit comprised of the Subject Lands as a exception to any applicable field rules.”
The company that is asking for the amendment to the field rules is also the company who has wells on our 1280-acre section for which we are receiving royalty payments. We were listed as “owners or lessees of properties adjoining the tract which would be affected by the exception location…” The hearing was set for November and I sent an email to the Industrial Commission and expressed my concern about this exception causing lost revenue for any mineral rights owners in our unit.
My question is, if the Industrial Commission denies the exception to the field rules what happens next? Is it possible that the well that was drilled too close to the line will then be required to make royalty payments to the mineral rights owners in our section also? There is already a well that was drilled down the section line that pays revenue to the mineral rights owners in all four sections (two 1280-acre spacing units were combined into a 2546.24 acre unit) Also, how long does it usually take for the Industrial Commission to make a decision? I was told we would be notified when a decision is made but it’s been two months since the hearing.