Thank you “dome” for your valuable advice. I have a couple more questions…
Pipeline Option? Anything to know about that?
And, what about Pooling? Is that bad or good? The lease states, “Lessee, at any time, may reduce or enlarge any pool or unit” and “Lessee is expressly permitted to drill one or more horizontal wells that traverse two or more units pooled”…The paragraph is actually quite long but this is the gist. Any major issues regarding pooling?
I just found and downloaded the free book this site offers. I will keep learning on my own, but I do appreciate any additional, easy to understand info. It’s so helpful!
Thank you
KnDfort, My understanding of any pipeline leases would only involve the surface owner, not the mineral owner. Perhaps someone more knowledgeable could address that one. As to pooling that is pretty much the norm involving the long longitudinal drilling lines resulting from horizontal drilling. Really no other way to bring the various parcels involved together to produce and figure individual payments. Over time the Designated Pooled Unit (DPU) will probably be modified, ours twice in 5 years, or new DPU’s formed with new drilling activity. Hope that helps. Some of the professionals here certainly may have further comments from their experience.