Bad well spacing

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Why do the operators not like well spacing and royalty sharing?

Some operators like nothing better than to drill a well on the boundaries of the mineral tract they have leased in order to legally steal the gas out from under an adjacent mineral tract and its mineral owner and operator.

Some operators make money “on the push”.  They find people looking for investments who do not know much about oil and gas drilling.  An operator persuades someone to invest in the drilling of a well.  The operator pays himself out of the investor’s money to drill the well, which is where the operator makes his profit.  Because this kind of operator makes his money on drilling the well, he does not care if the long term production from wells that are spaced too closely is not that great.  And by putting the wells he can get investors to pay for closer together on fewer leases, he does not have to lease as many mineral tracts.

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