I own the surface and mineral rights on an approximately 40 acre piece of property in Texas. I entered into an oil and gas mineral lease in 2015. In mid 2016, the company drilled a gas well on the property that adjoins mine. A P-12 and a plat were filed with the RRC for a drilling permit showing a 160 acre unit. In December 2016, the company filed a completion packet with the RRC including a P-12 and a plat showing a 160 acre unit. My 40 acres are included in both P-12's and plats. The company began selling gas from the well on 12-23-2016. I have received a division order from the company stating the unit is 704 acres and an effective date of "date of first production". There has not been any document filed with the County Clerk's office in my county. Obviously I would rather be paid royalties on 40 acres of a 160 unit than a 704 unit. I have not been paid any royalties at this time. I do not know if I should sign this Division Order or not, should I question the company regarding the P-12's and plats designating the "Lease Name Unit 1" as being 160 acres and not 704 acres? Any thoughts or suggestions are appreciated.
You should not hesitate to contact the oil company and ask questions. You need to talk with the landman for the well. Maybe there are plans to drill a lot of wells on the acreage. Or perhaps the company just wants to hold as much acreage as possible with a single well. Ask about a DPU. Look at your lease and see if you gave blanket permission to pool your acreage with other tracts. To get specific suggestions or comments with information about the well or unit, then you need to list the county, operator, well (API or RRC permit or RRC lease #). There may be someone else in the well or who can look up information for you.