What is a Unit when it comes to oil and gas? A few years back I bought a bunch of working interests. One of these was listed as just Arnett Unit? What is a Unit? Do I own any actual mineral rights? Tract 1 is 320 acres with a participation of 0.675 and Tract 2 is 317.6 acres with a participation factor of .325?
What in the world did I buy and is it worth anything? I ask because my wife and I received letters in the mail asking to purchase our producing mineral rights in Jones county?
I figured they were worthless because production is zero and even property taxes dropped to zero this year on them?
The word “unit” definition varies depending upon the state. Go back to your deed and read the description of what you bought. It might have been only a working interest in a well bore royalty that extends over two tracts of land or it might have been mineral rights. Have you been paid on any royalties? Probably nothing new since the taxes went down. A unit can be a particular set of acres that are gathered together in order to drill a well that will drain those acres efficiently.
Sounds like only the leasehold interest which is the right to drill, but not the mineral rights. So only lasts as long as there is production according to the original lease. However, that last work “interests” may include mineral rights. An attorney would be a better person to ask.