Where an operator has produced from a well with 40 acre spacing for many years with rights to deeper zones not currently being produced, and a horizontal well by another operator is being proposed, what are the rights of the original operator? Can the horizontal well be produced from the same zones, or are deeper depths pooled? How is the royalty calculated if the original operator's deeper depths are pooled?
P Thomas,
Unless you have caused the 40 acre operator to release all other formations and acreage out side the 40 back to you, that operator has control of all minerals in all formations as long as the operator is producing from the vertical well. It is not uncommon for an operator to drill another horizontal well in the same formation but with a much larger drilling unit. The H well and new unit will require a new permit and perhaps pooling.
Your royalty is calculated on what is produced and sold from units including your minerals regardless of the source or type of the product.
Does your original lease allow the lessee to pool your acreage?