a live well would typically produce about 4.4 billion cubic feet of natural gas during its lifetime, which can be 50 years or more. If the wholesale price of natural gas were to average $5 per thousand cubic feet during the well's life, that production would be worth $22 million, making the landowner's share $3.3 million.
But the money will not come all at once, nor will it even come in a steady stream.
Gas production is a matter of diminishing returns: A well's output begins with a rush, then declines into a long tail so that about half of total production happens within the first two years. Thus, about half of a landowner's payments will come within the first two years. Using the above numbers, that would add up to $1.65 million.
All of that assumes that a single landowner receives all the royalties from a particular well. In reality, a company must often negotiate leases with several landowners to assemble enough land for a "drilling unit" -- 640 acres, or one square mile.
How much the companies offer depends largely on how much they expect to get for the gas they find.
This should be a good start but there is a new technic this year in stead of useing fluids when you or I find it again I'll post. This fluid is to high of a risk for me.
Because the earthquake was only 6 miles deep, it created fissures in the earth. One witness told CNN that the earth opened up and that water poured out.
iReport: Did you feel the quake? Share photos and video
The quake struck at 3:40 p.m. Sunday (6:40 p.m. ET) about 110 miles east-southeast of Tijuana, Mexico, according to the U.S. Geological Survey.
So my post on March 29, 2010 at 4:17pm of what my thought of risk is no longer valid then we are really messed up. Go head New York State and block out the real risk and be a puppet to the Texans and pay them 70% for your energy. Within one year we can put a whole in big oil pockets just by contacting Originoil and telling them you want them and then they will tell you what you need to do. Our world is not supply and demand today but Demand, Do and Supply. Their System is the closest to recycle as you going to get right now to satisfy all parties of the People. www.originoil.com And keep your cash longer in your community and state. You can not have a world economy without a strong community and state that you can prosper in.
If you’re for individuals rights, you’re on the right track. To change this, you will suffer in the long run without protecting the other person rights. These two news articles cover your first step into the question to drill or not. You should reviewed and considered with more research
Here are two news articles that should be reviewed and considered with more research
What makes this site so great? Well, I think it's the fact that, quite frankly, we all have a lot at stake in this thing they call shale. But beyond that, this site is made up of individuals who have worked hard for that little yard we call home. Or, that farm on which blood, sweat and tears have fallen.[ Read More ]