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Instead, the other mineral owners just lose out on the gas in their minerals that is getting drained by Ms. Southwest’s well #2. She legally stole it from them. All they can do is drill properly spaced wells on what minerals they have that is not already being drained. So we end up with 6 wells drilling what 4 wells could drain, getting out less total gas, all against almost everyone’s interest except Mr. Southwest and the people who own drilling rigs. And again, if the pool extends further than our 400 acres, more offsetting will occur. Another thing bad situation can, and often does, occur. A mineral/royalty owner could own 30 acres. The neighbors on either side of the first mineral owner could drill wells that are far enough away that they do not drain gas from the first mineral owner. However, the space that is left in between the original wells is too small to justify drilling a well. There will be too little rock that has not already had its gas drained out by the first two wells. So the first mineral owners is “spaced out”. The gas cannot economically be recovered. The first mineral owner cannot make money and the gas is left uselessly in the ground. |
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