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I own a very small portion of land in Carter County, Oklahoma. We have leased the land and recently received court documents to establish a 640 acre drilling and spacing unit in Section 9, Township 4S, Range 2E in Carter County.  Stating a waiver of notice was submitted on our behalf.  Do you know how long something like this takes to get started?  I am hoping this means there is a good chance they will drill and find natural gas.  If i own only a few acres and they do find it am I looking at a small amount of royalties or ?  I have no idea about any of this if we are looking at $100 or $5000 or ?
Any information you can give me would be helpful.
thank you

You can figure your potential royalty in a 640-acre drilling and spacing unit thus:

Acres owned divided by acres in spacing unit times royalty. The result is your ownership in the well, expressed as a decimal. Once you have that you can multiply the decimal by any amount of oil or gas you think might be produced in a month, and then by the current price of oil and gas that month, to give you an estimate of what your royalty that month might be.

Example: You own 20 acres in a 640-acre spacing unit that is producing 5000 barrels of oil per month that's selling for $90/barrel. Your lease is 3/16 (.1875) royalty. Your math would be:

20/640 X .1875 = .00585938, which is your "decimal interest" in the unit. Multiply .00585938 by 5000 barrels of oil to get 29.30. Then multiply that by $90 to get $2636.72, which would be your estimated royalty income that month.

Most wells in Carter County won't produce 5000 barrels of oil per month for very long, but one well just a few miles from here that was completed in early 2012 has been producing between 2000 and 3400 barrels of oil each month since being drilled. It's in 1-4S-2E.

A drilling permit was issued for your section to XTO Energy earlier this month. It's good for a year basically and it does indicate they plan to drill a well. It's not a guarantee however, so don't get your hopes up too much just yet. Likely you'll see a "spud notice" in one of the local papers once they begin drilling. Even if they drill a producing well it will likely be six months or so before you'll see your first check, and that first check will likely be your best check as it will include the first several months of production all in one check.

I can also tell you that XTO is CURRENTLY drilling a well just a couple of sections over from you to the northeast (section 2.) It was just started 3 days ago and will likely be several months before we know how it comes in. If it comes in nicely then it's more likely they'd drill your section 9 I'd say. They are also currently drilling a well (spud on December 20th) in section 3, which is adjacent to your section 9 actually. Same story there. Good well means more likely yours will be drilled.

Hope this helps you out.
Frederick M. Scott CMM RPL
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Frederick M. Scott


Oil and gas leasing, lease negotiations, how to best deal with the oil and gas companies or their representatives, buying/selling mineral rights, forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.


I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the process. I have written articles of interest to mineral rights owners which have appeared in various industry magazines and newsletters. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law, mineral appraisal, and land and title work over the past ten years, and have also worked as a professional landman. I've seen the business from "both sides" and therefore feel confident I can help out most of the folks who ask questions in this forum.

National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.

Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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