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Oil/Gas/Wellbore Ownership vs. WI Ownership

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James wrote at 2010-04-05 14:54:32
The previous answer addressed the difference between a ROYALTY interest and a WORKING interest, but did not address what a WELLBORE interest is.



A wellbore interest is similar to a working interest, except that ownership is restricted to one well only.  For example, if you purchase a wellbore interest in a well, and another well is drilled on the same lease that is covered by the working interest, then the working interest owner would be eligible to participate in the second well, whereas the wellbore interest would not (since they only have rights to one well, not to any others in the unit).


Sam Tian wrote at 2016-08-22 08:56:09
Hi James,



Does this mean wellbore interest is "carved out"interest from the royalty or from the WI?



Many thanks!



Sam(email:217207@qq.com)


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James H. McConnell, CPL

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READ CAREFULLY BEFORE ASKING ME A QUESTION I will try to answer questions about Oil & Gas leases, minerals, royalties, and servitudes, if the questioner has provided a good description of the lands. I require a section, township and range for any land not in Texas. I require a survey name and an abstract number if the lands are in Texas. I will answer questions about offers to lease or purchase mineral interests only if all terms of the offer are in the question, including the term of the Lease or conveyance, the royalty and the amount offered. Failure to provide this information will result in the question being rejected. I have answered more than 3800 questions on this site and get as many as fifty in one day. I do not have the time nor am I inclined to deal with detailed questions requiring an attorney. I am not a substitute for an attorney. If you do not write in a cognizant form, I will reject your question. If you have done real research and have a question I find interesting, I will answer it. If you haven't done any research on your own, I will not do it for you. If you do not rate the first answer, do not send a follow up, because I will reject it.

Experience

I have been a Professional Landman for more than thirty five years. I have drilled and operated oil & gas wells in Louisiana and Texas and an familiar with the rules and Regulations of the Texas Railroad Commission and the Louisiana Department of Conservation. I have testified in court as an expert witness.

Organizations
American Association of Professional Landmen CPL #5303

Education/Credentials
BA NSU, 1971

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