Pooling from 2 sections to 4 sections

[Randy_C_Fosse]

I have 4 new wells in Williams County, North Dakota, Sections 30 & 31 T 155N-R96W. Roxy 6-31H, Roxy 7-31H1, Roxy 8-31H and Roxy 9-31HSL-1. On the 6,7and 8 wells my royalty (.0094) is the same as the prior wells in those two sections. Roxy 9-31HSL-1 was pooled into the two sections on the east side, So its sections 29,39,31 and 32 T155N-R96W. So my royalty for this well is .0047. I understand that pooling 4 sections doubles the acreage, so your percentage is halved. My question is how do I benefit from the 2 additional sections mine were pooled into. How do I share from the oil drawn from those sections. Thank you.

[nop_llc]

Usually there is only one lease line well that four sections share in. Your benefit is being able to drain from those sections with yours. Obviously, the wells aren’t any better so the revenue is halved. You wouldn’t share in a well from that unit just like they wouldn’t share in the other roxy wells.

[Randy_C_Fosse]

This is the answer I received from Continental Resources. We brought in the additional sections to create a new spacing unit for the Roxy 9-31HSL1 to protect correlative rights for owners in all 4 sections. This was drilled as a “sectional line” well in order to capture reserves that exist outside the 500’ hardliners. The NDIC allows these section line wells to be drilled up to 250’ on either side of the section line. But, in order to drill these wells, we need to account for owners in all bordering sections.

I don’t know where the 1/2 royalty I don’t get on this well goes? Is it divided up between all wells in the 2 sections pooled into based on acreage percentage of the 1280 acres. Or can anyone please explain where the money goes. Thanks