I am having difficulty finding information and/or litigation related to mineral rights owners receiving royalties for the take point gap in horizontal drilling. The take point gap runs from the kick off point (where the vertical drilling starts to curve) and the well bore (that occurs when the drilling is horizontal). That area, perhaps as much as 500’ is not typically included in the pooled area. However, I am considering the argument from multiple perspectives. So, are you aware of any articles or litigation that address this issue? Thanks!
There’s typically casing across there reservoir from kickoff point to first take point, so it’d be similar rules to if you only had deep rights and had to drill through shallow reservoirs to get to the deeper ones. Or a directional well that has a surface location in Lease A but the well drifted into Lease B (so, lease B owners get the production). What generally matters in Texas is where the oil/gas enters the wellbore (note: I’m not a lawyer).
Now, there is some interesting emerging litigation regarding how multi-unit wells are allocated, and if it’s allowed, that might be of interest to you since completed wellbore in each unit is usually the way it’s divided.
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