Bottom Hole location/ Inclusion In Drilling Unit

Just thought I would put this out there for discussion. Does anyone know how close the horizontal drill bores bottom hole location must be to your property line before they include you in the drilling unit?

Background: We are already in a drilling unit 285E Clinton County PA. While checking well plats around our acreage I noticed another drilling unit 285C has two horizontal well bores bottom hole locations plotted very close to the property line?? Any advise?

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Permalink Reply by Doulittle on February 27, 2012 at 11:47am

word I got was approx 500 feet from edge of track running parallel to track line. I can find out more specifically if you need clarification. Later

Permalink Reply by Clinton44 on February 27, 2012 at 11:51am

Any additional you can find would be great thanks!!

Jim ShoosPermalink Reply by Jim Shoos on February 27, 2012 at 4:09pm

In PA there is no DEP mandated setback from a lease line for a Marcellus well.  Theoretically an operator could parallel your lease line and he is not "required" to include you in that unit.  PA has a little something called "the rule of capture" which essentially means that a lateral (as long as it does not physically underlie your property) can suck as much gas out from under your land as possible with no corresponding obligation to compensate you. 

Permalink Reply by Clinton44 on February 27, 2012 at 4:14pm

Well that stinks!! I used the Google Maps measuring feature and calculated they are within 500 feet of the property but not underneath it...  

Permalink Reply by melissa humphrey on February 27, 2012 at 5:05pm

Usually units are formed end to end and side to side.

There is question of whether fracing is subsurface tresspassing.

It is artificial and Rule of Capture may not give cover.

Permalink Reply by Chartist on February 27, 2012 at 5:34pm

they're drinking your milkshake!

Permalink Reply by Clinton44 on February 27, 2012 at 7:18pm

I know, cant be to disappointed we still have six wells in the other unit that we are pooled in!

Permalink Reply by PA roughneck on February 27, 2012 at 5:27pm

Once you're leased there probably isn't much you can do.
  Before leasing, however, one can seek to add an 'offset well provision' to the lease. I've a friend in NEPA who had such a provision and when the gas co drilled the neighbors unit pretty much right up to the lease line, he contacted the gas co and reminded them of his offset well provision.
  "The fundamental purpose of the offset clause in a freehold lease is to protect the freehold owner-lessor from drainage resulting from the inaction of his oil company-lessee.http://www.fhoa.ca/understd.htm#offsetwell

Seeing as how the operator of his neighbors unit and his lessee were the same, they simply added a few of his acres that lie adjacent to the unit, on into the unit-thus allowing him to collect royalties on those acres that might otherwise have been drained via the 'rule of capture'.
  I know this is probably to late to help you out Eric, but thought I'd share it with those who might not yet be leased. Some companies (probably most) might not agree to one, but it never hurts to try!

Permalink Reply by Clinton44 on February 27, 2012 at 7:26pm

Thanks!! for all your replys, Melissa made a good point, I have been reading about the possibility if any of the fractures crossed onto your land being considered subsurface tresspass..

Does anyone know of any court cases where any precidents have been set as to whether or not fracs on your property constitute subsurface tresspass?? 

Nice advise from PA roughneck for any future lease signers, especially for larger land owners that they would have a hard time drilling around.. 

Permalink Reply by JK on February 27, 2012 at 7:31pm

I am taking notes as always. Keeping a notebook going!  It's good for WV too.

Pa roughneck, thanks!

It seems we ALL need this added to our leases.

I have SUCH a long list!  So happy to have the information.

Permalink Reply by Doulittle on February 29, 2012 at 7:44am

Good info. I need to check if same provision applies in Ohio.

Permalink Reply by Clinton44 on February 28, 2012 at 9:03am

Dennis, You make a good point, which I have though about as well, whereas the wells in our unit might be drawing gas from neighboring parcels that are also not being fairly compensated.

This is exactly why this situation should be addressed by the agencies monitoring the drilling. For instance there should be set backs that are enforced, if the drillers push the envelope and get to close, they should have to pay royalties from the well in question ( not saying they should have to include you in all wells in that unit maybe a prorated percentage scale could be developed??) to the affected property owner. 

For who really knows how far the fracks go and what effectiveness they have, as in all the well completion reports that I have read the distance is not given it is listed as proprietary information.

I have noticed in plotting GPS corordinates of bottom hole locations that the average distance between horizontal well bores is always around 900 feet which would indicate that in an effort to capture all the product from an area that you would want your fractures to intersect as much as possible which in turn tells me that the frac distance is probably in the area of 400 to 500 feet.

I have also read that the shale is a tight formation and gas travels very slowly from unfracked areas. In any case I am sure this will all be figured out eventually...

 

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