I just received notice from Crownquest that they are requesting an exception to State Rule 26 and 27 to surface co-mingle production from several wells, all of which I have a percentage interest in, and will measure production by “periodic well test”.
Bottom line is, will this affect my bottom line? I am about to retire a couple years early (I’ve been working for over 50 years) but I don’t want to hurt myself.
Thanks in advance for any wisdom.
Most likely the operator intends to build a central collection facility to which gas and oil will be moved from multiple wells through smaller pipelines. These volumes will be combined to be sent through larger pipelines - gas to processing plant and oil to another sale point. It is a more efficient and economic system for the operator. Your concern would be that the testing be done sufficiently often and around the same time to ensure that the total volumes are correctly allocated back to the wells. As temperature affects measurements, you do not want only annual tests for some wells only in August and others only in February. Better operators test frequently.
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Commingling will make their approximation of which well/lease made how much a bit less accurate. In simplest terms, any increased inaccuracy is just as likely to help you as to hurt and the most likely scenario is no real change, so I would not sweat it. That’s assuming you don’t own the same % in all of the wells…if you do, well then I definitely wouldn’t sweat it as your pie is still a pie no matter how the slices are cut.
So I wouldn’t sweat it either way. 
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