Xto drills for oil and splits pool

Royalty Statements
1

Maybe someone can advise, suggest, in robertson county i am in 690 acre tract with 26 acres, thought that was involved in any pool production, 2 gas wells later and they split the 690 acres and drill for oil and leave me out, but yet they are flaring gas that is from the pool, i would think that would be my gas, i dont understand how they can do that, any observations or similar experience, xto is the company, thanks.

2

Randy, are your 26 acres an undivided interest in the 690 acres or do you have your own 26 acre tract? How many of the 690 acres did XTO pool in gas well 1 and 2 and how many of your acres were put in each pool? Are you saying they drilled a third well, which is an oil well?

3

thanks, i own 26 acres of the 690 acre pool, all 690 acres were in the 2 gas wells, my 26 acres were in the gas pool, both wells, they divided the 690 in half, and drilled an oil well on the half i now am not in, yes, the third well is an oil well, and flaring big time, i hope that helps, thank you,

4

I am somewhat confused about XTO dividing the 690 acres in half when they were included in two gas units. What are the names of wells 1, 2 and 3?

5

Read this on the Pugh Clause, it may help.

http://pagaslaw.net/pugh_clause.html

6

Laura,

Thanks, i do have the pugh clause, but i was informed that according to my lease they can make seperate oil units out of smaller portions, they need all for the rrc regulation for gas, but suppossedly can split and drill for oil on different tracs in the original gas pool, no wells have been drilled on my 26 acres, any other thoughts will be appreciated, just doesnt seem right, does the pugh clause mean if they dont drill on my place i can get a bonus?

Thanks,looking foward to hearing back or suggestion for oil and gas attorney.

7

Randy,

I wish I had a deeper understanding of all of this. I am a novice doing my homework and trying to learn about all of this. We do not yet have an attorney, as I am a bit worried about hiring one that lives and does business in the same tiny town as our Landsmen. This business sounds like there are so many things you have to be very careful about, dot all i's and crossing all t's. Never know who is in bed with whom either. Good luck to you. Where is your land?