Can Chpk (or any O&G Driller) prepare a Well Pad without first pulling a Well Permit from ODNR (in Ohio). Is there anything about Ohio State Law that states: The Driller must first file for and receive their Well Permit BEFORE they can start working on the Well Pad ?
Is there any clause in the O&G Lease that actually requires the Permit to be approved by ODNR before the Driller can begin pad construction?
Could this "trick" be used to hold-by-production any acreage that has an old lease that just requires any type of construction to be performed by the Driller?
Where in Mahoning County did they scrap a pad that was already built? The Geatches well is completed. The Jarvis pad was built. It had a leak in the liner, and had to be rebuilt. Where else in Mahoning County has a pad been built by Chesapeake?
An oil and gas company can extend a lease for two years beyond its primary term for the price of a permit application and moving a little dirt. That is a lot less $ than paying the signing bonus again. Many boilerplate leases specify that this (and sometimes even less) is sufficient to be considered "commencement of operations" and that is good to hold the lease beyond the primary term for as long as the permit is good. Some leases even specify that this minimal activity is considered "production". This is why it is SO important to fully understand every word in the lease you sign.
"... Go back and read your lease ..."
The completed pad is not on my property.
I already know that I do not have this issue with my lease.
In Pa. it is necessary for the landowner with the site to approve the site on the DEP report. Don't know if the oil companies adhere to that...but it is a fifteen day approval time for the landowner to approve the drill site location. For you lessors out there involved in units you should check with the owner of the land with the well pad to see if they had a signed release with DEP that was done.
Of course you need to contact the DEP in Ohio to see what the rules are there or pull up the DEP info online...that's where I found the rules concerning an installation of the well pad and drilling for wells.