I am very new to learning about how these things work, so I apologize in advance. Our family has an interest in well RS-State D- 155-92-0203H-4 which just went online last August/September. There is a well RS-Becker-156-92- 3526H-1, essentially across the road, which started producing in 2008. We do not receive royalties from the Becker well and I don’t understand why.
Can you help me understand how to research this type of information? I really appreciate it!
The State designates the spacing unit for a well, taking into consideration the physical characteristics of the reservoir so as to protect correlative rights and allow orderly development. Just as you don’t share in your neighbor’s well, he doesn’t share in yours. In any event, shale wells typically only recover oil from an area a few hundred feet either side of the wellbore.
Thank you Steve. I appreciate it. How can I learn what the spacing is for our wells. Does a 640 acre spacing mean that all landowners within a 640 acre circle from the well head are entitled to royalties? Thanks again.
Spacing units will generally follow Section Lines. In your case these are 1280 acre units comprised of two sections. Your well is under Sections 2 and 3 of Township 155-92. The other well is under Sections 26 and 35 of Township 156-92. The well names are usually a good way to decipher the locations, although not all operators use the same methodology.
Makes sense, thank you so much Steve.
Hi there. The reason you are not paid on the Becker well is because it is likely pooled into its own 1280 acre spacing unit that does not include your minerals. You likely own in 155-92-Sections 2 or 3 and the Becker well pools interests in 156-92-Sections 26 and 35.
This topic was automatically closed after 90 days. New replies are no longer allowed.