If a directional drilling rig is on one property, but the bottom of the well is under another, who gets the royalties? For future users searching this topic, if it’s different in Texas, what happens there?
The answer can depend on whether a well is drilled as part of a pooled unit or is an allocation well. In general terms entitlement to royalties depends on the point of production, as determined by the take points or perforations in the horizontal leg, rather than the location of the drill site or penetration point.