This is probably a really dumb question but it is driving me nuts so I have to ask.
I have royalties that were running a pretty consistent number, let’s call it $100 with standard 640 acre spacing in the section. Then the operator asked for and was granted revised spacing of 320 acres and immediately spudded a new well. The month after the change in well spacing was granted the royalties decreased by 50% to $50 and have remained there. Is this coincidence or does 50% of the existing production get escrowed until the DO on the new well is issued?
What is the Section, Township, and Range?
https://www4.oktax.onenet.net/GrossProduction/PublicSearchPUNbyLegal.php
Found nothing about them changing the spacing. The completion test showed a great well but long-term production is not for some reason.
Apache has a permit for the Taylor 30-12-22 horizontal well. Approved October 7, 2013. To the Hoxbar. On the west side of Section 30, increased well density requested approved September 2013. Royalties cut 50% from October to November. Probably just a coincidence.
Ron McKenzie said:
http://imaging.occeweb.com/OG/Well%20Records/1DD0F482.pdf
http://imaging.occeweb.com/AP/CaseFiles/030640FD.pdf
http://imaging.occeweb.com/AP/CaseFiles/03065C85.pdf
http://imaging.occeweb.com/AP/CaseFiles/03065C87.pdf
http://imaging.occeweb.com/AP/CaseFiles/occ5043968.pdf
https://www4.oktax.onenet.net/GrossProduction/PublicSearchPUNbyLegal.php
http://imaging.occeweb.com/OG/Well%20Records/03068F9A.pdf
Found nothing about them changing the spacing. The completion test showed a great well but long term production is not for some reason.