What is the minimum spacing of a nearby well to require royalty payments

Regulation
1

Hello everyone,

I am new to this whole thing of mineral rights. My grandfather gave me his rights in 1983.

Is there a minimum distance at which other companies need to start giving you mineral royalties?

I have partial rights to the NE/4 of 4-19N-3W and have one well directly on this property and then there are 3 others at the south end of the section that are also paying me royalties based on my fractional part of the entire section. The company for all 4 wells is Kirkpatrick Oil Company. I was wondering about other neighboring wells in connecting sections, can royalties ever be due?

Looking towards the future with you,

Rob

2

I don't know if you still need this question answered or not, but typically (in fact I'm about 90% positive this is always the case) you will only be paid royalties for sections you own interest in.

3

A well does not have to be drilled on your property in order for you to be due royalties, but your property does need to be pooled into the drilling unit for the well. Wells require a minimum acreage for the "unit" which is determined by the spacing rules for the particular field. Texas Statewide Rules for oil are 40 acres with 330/660 spacing. This means the drilling unit must be at least 40 acres and the well must be 330 feet from the nearest lease line and 660 feet from the nearest well producing from the same field. Say an operator holds two adjoining leases, one with 30 acres and the other 10 acres. The well might be drilled on the 30 acre tract but royalties will be paid to the owners of both leases based on the percentage they hold of the unit.

4

Mr. Fine,

My sisters and I inherited property in Texas, it has been in our family for a hundred years plus. Most of the land around us is owned by an oil company. This oil company has drilled 3 wells near our property line and has done a directional drill in the opposite direction of our land. When I started asking questions about the wells I received a call wanting to buy our little piece of property, I told them we were not interested in selling. When I ask the company if there is an oil pool of owners or a geological map of where they think the oil is pooling they tell me they will not give me that information. Can you tell me the distance property should be from the drilling site to be in an oil pool.