IS SHELL Slowing Down In Tioga County PA?

I heard a rumor today about SHELL. I heard that they were slowing down all drilling and shutting down drilling until 3D testing is done?  Could be up to 24 months.  Is this true?  Does anyone have any facts? What will happen to the commercial business and rental market in the area? 

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Permalink Reply by Robin Jackson on July 16, 2011 at 1:27am
What is your source for that info? The Governor Marcellus shale group just met two days ago and it isn't going to be made public until next wk..
Permalink Reply by N Bohl on July 16, 2011 at 1:48am
I was reading last night about it. Most of the stories I could find tie in the impact fee with it - as a news story that is. Most of the stories I could find were also coming out of Harrisburg - sort of bloggy, quasi-newspaper stuff. It easily deserves a thread of it's own.
Permalink Reply by N Bohl on July 16, 2011 at 2:10am

http://www.post-gazette.com/pg/11196/1160607-100.stm?cmpid=MOSTEMAI...

 

Robin. This is the type of story I found last night.

Permalink Reply by Wayne D on July 23, 2011 at 2:37am
Wow! I never knew forced pooling was that close. From my reading the governor isn't going to sign it and the support is not there for an overide. 
Permalink Reply by Keith Mauck (Site Publisher) on July 6, 2011 at 8:35am
Permalink Reply by Ann Ticopa on July 7, 2011 at 4:29am

Certainly activity has slowed in some parts of TC ... but picked up in other parts.  One change is that, while East was drilling single wells to hold T/BR leases and evaluate sites, SWEPI has moved toward drilling all six wells at a site initially.  So, for every six wells, there is a lot less traffic on the roads

. 

I doubt that seismic testing has much to do with SWEPI's pace of drilling in TC.   Depending on an individual resident's situation, it can be a good thing or a bad thing that Shell doesn't have to produce and sell gas at the current low price.

 

 

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on July 7, 2011 at 6:45am

I wonder if this is one reason why Chief is sending out lease addendums to establish on older contracts...such as the FORCE MAJEURE clause which will extend the lease time without payment to the Lessor and the SEVERANCE clause...which also protects the Lessee to be able to still enforce the provisions of the contract even if prohibited by law by removing any clause that would prevent them from continueing.

Please look up these on google and see if they are presently on your contract leases...for you may also et a letter requesting to add these addendums to your lease.

Permalink Reply by jeff k on July 7, 2011 at 10:15am

 

Asked that very question today to a manager working on our gathering system

Cut from Basin oil and gas article below (this was one of his reasons)

Some of the drilling from my company is focusing on locking up land in units with at least 1 well for now. the good part is they are spending money and getting all the gathering pipelines run to recover costs.

Higher and more stable oil prices may be leading some operators to switch from drilling for natural gas to drilling for crude, but drilling activity in the oil patch could still not be described as booming.
With a stable crude price at a level that many consider high enough for independent operators in Texas to make a profit, why has drilling activity been so slow in coming back around? In other words, with $70 oil in September, why is drilling and production still slow in the oil patch?
Asked that question, three independent Texas operators agreed on several different reasons for the sluggish return to the peak activity experienced in the summer of 2008, including depressed natural gas prices that have been below $3 per million British thermal unit (MMBtu) for much of the summer. But they all claimed that one overriding factor is affecting the industry -- uncertainty.

Permalink Reply by Robin Jackson on July 9, 2011 at 3:05pm
There was over 2,000 permits issued in Tioga County this year..only 900 so far are done. I don't believe it is slowed down at all. I live on Rt. 15 in Tioga C ounty and traffic isn't slow at all. It is very busy here and I count water trucks starting around 4am.., dump trucks around 6am and they come and come and come on and on and on..It doesn't stop. Just because Shell isn't working right now many other companies still are working. My husband delivers gravel for pads and he has delivered gravel to many pads in the last two months..
Permalink Reply by jeff k on July 10, 2011 at 2:41pm

  According to rlstore as of june 178 permits were issued so far in tioga co. ...Total for 2010 was 643 permits so there is a decline from last year (so far). unless i'm missing something

  Good to here there is a lot of activity up our way yet, and good for your husband too

 

Permalink Reply by cheliped on July 11, 2011 at 1:22am
jeff k - has the permits increased in butler county? 
Permalink Reply by jeff k on July 11, 2011 at 4:05am
Butler Co.
2010 ...151 Total
2011 ...83 as of June

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