unit size/lateral directions

I've noticed on all the maps I've seen pertaining to the horizontal wells drilled that the laterals all go nortwest or southeast. some go over a mile in those directions. Would like to learn why? Is it because of how the shale formation is laying? Also. does this mean that the unit size ,whether 640 acres,or 1280 acres, will be a long rectangle,as opposed to a square unit? Would royalties only go to the landowners within that unit?  Could your land be only a few thousand feet directly east of the well & not be part of it?

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Permalink Reply by farmgas on January 30, 2012 at 8:19am

 

What has everyone`s experience been with well pad size?   I have seen them to be about 500'x500' or approx. 5-6 acres.   Some appear to be smaller and some appear to be twice this area.   Are any particular gas companies known for excavating larger pads then others?   How many acres generally are used for a water impoundment?

Permalink Reply by Philip Brutz on January 30, 2012 at 8:44am

If you fly to this location with Google Earth 41.882543° -75.991965° in Susquehanna Pa.  You will see a large well pad with a large man made pond. The image is from this last October and will give you an idea what to expect here in OH. There are several well pads in that area with recently installed pipelines.

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Permalink Reply by Paul Martinelli on January 30, 2012 at 8:22am

Correct.....I was told same thing by a driller....If they can't buy/trade for the parcel....the competitor would get a cut.  Their most important goal was to have over 50% interest in the UNIT  so they would be the operator.

Permalink Reply by farmgas on January 30, 2012 at 8:40am

 

Paul...does the gas company drill only on their holdings in a unit like you describe or are they willing to place the well pad on another gas companies leased parcel within that unit?  Will they still have the same rights to create ROW's, roads, etc.?

Permalink Reply by Paul Martinelli on January 30, 2012 at 9:36am

Sorry...I don't have all the details.

 

I asked a Company about creating Units and dealing with parcels held by dirfferent Companies.

 

All he said was....there is lots of horse trading going on at that point, and that ist is possible for a UNIT to be leased by several Companies....each would get thier share.

 

My guess is that the well gets drilled in the UNIT where it makes most sense.

Rights to ROW and etc....would be determined by each individual parcel lease.

 

I was also told that (this particular compny) was working on a standard Addendum lease  that they would want all current HBP fols to sign. The point being that they want to have all leases with same terms if at all possible.

Permalink Reply by Steven Gardner on January 30, 2012 at 10:39am

"The point being that they want to have all leases with same terms if at all possible."

Thats rediculous.. whats the point in negotiating for a better lease in the first place. If they want my parcel included in a drilling unit then they take it at the terms of my lease regardless of who the driller is.

Permalink Reply by Paul Martinelli on January 30, 2012 at 10:44am

this mainly directed at old HBP leases where the driller needs tems changed.......they get what they need with new leases.

Permalink Reply by craig on January 30, 2012 at 11:36am

If they want my parcel included in a drilling unit then they take it at the terms of my lease regardless of who the driller is.

Of course they will reply with: Ok, we will just hold you by production forever. They won't do that because they want to get the well producing as soon as possible. Don't listen to their scare tactics.

Permalink Reply by Steven Gardner on January 30, 2012 at 12:14pm

They can't HBP forever with the lease I have... and I would not sign any additional addendums. I know with the old leases they can do any number of bad things .. incl HBP forever.

That is interesting about incl your tract in with another driller though. I had not thought about that .. I'm sure they would rather own all the leases in a drilling unit.

Permalink Reply by craig on January 30, 2012 at 11:34am

Never, ever sign an addendum without knowing exactly what the its goobledegook language means. If the gas companies want something they must give something in return, from my perspective.  

Sorry, but I've been misled a few times by sweet talkin' folks in the gas business. They don't usually lie to you they just bury the truth in legalese mumbo-jumbo. 

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