2022 Project Expansion

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    As described under the “About” tab on this website, Sinclair Oil & Gas Company and its agents Four Sevens Operating Co. LTD and FS Minerals Ltd. (collectively "Sinclair") have been leasing acreage within the City of Big Spring since 2017 in order to drill horizontal oil wells.  In 2018, Sinclair requested that the Railroad Commission of Texas approve certain “drilling units” in order to pool all oil and gas production attributable to four wells that would be drilled beneath a certain geographic area within the City.  The Railroad Commission approved the applications, and Sinclair drilled those wells in 2019 and 2020.  Thereafter, in 2020, two more wells were drilled within city limits to the west, outside of the previously state-approved units, as an expansion of the project.  These were the Marcy 1WA and the Comanche Trail 1WA wells.  In 2022 Sinclair will be seeking Railroad Commission approval to form pooled units of approximately 640 acres for each of these wells, in order to fulfill a commitment to city leaders that no tract included within the boundary of its production units will be left out.  This will be a westward expansion of the project approved by the Commission in 2018.  Sinclair has already obtained oil and gas leases covering a majority of the acreage in the proposed Marcy and Comanche Trail units and filed declarations of pooling fixing their outlines; however, some mineral owners within the Proposed Units, primarily owners of individual city lots, have not responded to Sinclair’s earlier inquiries.  For lack of response, there are town lots and small tracts within the boundaries of each unit which are presently excluded.  In other words, there are presently some small holes in each unit, which Sinclair seeks to fill.

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    In 2022 Sinclair will be going to hearing before the Railroad Commission seeking authority under the Texas Mineral Interest Pooling Act to include the small tract owners presently excluded from the Marcy and Comanche Trail units, even though they have not responded to leasing offers.  The owners will first receive an offer letter, proposing to lease their tract in exchange for payment of an agreed bonus, and offering other alternatives as well, including purchase of their mineral interest.  If there is no response to the letter, the mineral owners will then receive a notice of hearing from the Railroad Commission.  A copy of this hearing notice will be published in the Big Spring Herald for four consecutive weeks.  At the hearing, Sinclair will present evidence in support of its application, and outline its plans to the Commission.  Any party desiring to observe or to oppose the application may appear at the hearing.   

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    Sinclair is seeking unit sizes of approximately 640 acres, but the Commission may as a result of the hearing elect instead to form smaller units of about 160 acres each.  In such event, Sinclair intends to pool the smaller units into a single larger unit to match the existing unit boundaries.  After the hearing the Commission will issue a written proposal for decision outlining its recommendations.  Parties desiring to do so may respond to the proposal in writing, observing the filing deadlines it will set forth.

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    Questions about these applications may be directed to Sinclair’s land agents Chad Loudermilk or Cody Hix at 682-708-8196 or by e-mail to Chad at cloudermilk@foursevens.net.  Elsewhere on this website you will find tabs including copies of the 2022 offer letters, maps, lease form, drilling cost budget, and farmout agreement form.  Also you will find materials from the prior application which went to hearing in 2018, along with a copy of the Commission Order approving the first phase of Sinclair’s proposed development.