If a 1280 acre pooling order is established and a well is drilled on 360 acres of it, say the nw 1/4 of one section to the nw 1/4 of the next section, does everone in the two sections get paid or just the owners of the area where the well is drilled?
You may mean 320 acres but no matter, Everyone gets paid in accordance with the rules of the approved pooling order. Usually is is on a net acreage basis for royalty but not always. Sometimes its is an estimate of physical measurements of formation thickness etc.. In horizontal drilling development of multiple zones (the niobrara has 4 in some areas) the pie is decided up no matter what zone is drilled and completed and regardless of the mineral ownership of each well.
Pooling is a fair way to even out all of the inefficiencies of production and the non-homogeneous nature of oil deposits.
Seemed odd to me also but the permit application is for 360 acres. The directional shows it starting in the nw corner of the nw 1/4 which we own and goes north through the sw 1/4 of the next section into the nw 1/4. So if we have 50% interest in the N 1/2 (320 acres) of the one section where the well will be we will get paid on 160 not 80.net acres. Is this correct?
Barry,
If you send ne a personal message with the API number or other legal reference to the APD, I will check it out. Could be you are in a highly corrected Township or the Applicant is forced to jurymander a non standard unit due to regulations.
Barry Songer said:
Seemed odd to me also but the permit application is for 360 acres. The directional shows it starting in the nw corner of the nw 1/4 which we own and goes north through the sw 1/4 of the next section into the nw 1/4. So if we have 50% interest in the N 1/2 (320 acres) of the one section where the well will be we will get paid on 160 not 80.net acres. Is this correct?