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Oil/Gas/Well spacing orders


We recently finished probate on my father in law's mineral rights.  The well is in Dewey County, Sec. 3, TWP 16, Range 14.  The lease was signed in 2010 by our Step Mother in Law (my husband's step mother# and it was classified by the leasing agent #JMA) as a "dresser drawer" lease.  It is now producing, according to the last report from the producer in May 2012, and shows gas and oil.  The well was initially drilled for gas.  According to the spacing orders, the gas is what they drilled for and has been set at 640 acres.  We are wondering what the spacing orders should be for the oil.  We were under the assumption per the lease that the oil would be 40 acres.  Is that how it works or will the oil also be under the gas spacing orders of 640.  Thanks for your time.

It is classified as a gas well for spacing purposes, even though it is producing some oil (or condensate...i.e. liquid gas) as well as gas. The 40 acres you saw on the lease likely referred to pooling and unitization, which is not the same thing as a spacing order. I looked up the spacing order (#593840) for this section and it is indeed 640-acre spacing currently for the Woodford formation, from which this well is producing currently.

It's probably a good thing that it's not 40-acre spacing for the liquids/condensate being produced, because if it were you'd only be paid for them if the well was producing from the same 40 acres of the section that you owned in. If your interest lay outside that spacing unit, you'd get no payments for liquids.

Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
<a href="Hope this helps you out.
Frederick M. "Mick" 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 several articles which have appeared in various oil and gas 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 landwork over the past ten years, and also worked as a professional landman and lease buyer for a time. 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 (NARO); American Association of Professional Landmen (AAPL)

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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