We had a gentleman come up the drive today from Cougar Land Services.  I wasn't home but he left a permit/permission slip for seismic testing.  It also had an exhibit attached outlining a pay rate of $3.00/acre.  The man said he was coming back but hasn't yet. 

 

So here's my question and maybe this discussion can be a "living" post with the answer as time goes on; does anyone know if they're starting off at $3.00/acre or did they start at a rate lower and are now up to $3.00? 

 

          

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We had a woman from TGS come to our door with a similar offer.  She stated they are doing a 360 square mile radius.  I have not heard of any other offers. 

 

I had the same experience a couple of weeks ago.  Investigated the payment for seismic testing and learned that the low rate is $5 per acre and the high end is $25 per acre with $10-$15 per acre the mid range.

 

The lease had a place for the landowner's SS#.  I tried to verify Cougar Land Services and contacted the parent company in  Stafford, Texas: they did not respond. 

 

I am leased with Chesapeake and contacted them to see if they authorized this.  They asked me for the county I am in and I sent them the information two separate times, they did not respond.  I will let you know if I hear anything from Chesapeake or Cougar.

 

Oz

He came back today and here's what I found out;

  • Chesapeake is endorsing the testing as he brought and gave me a copy of a letter from them signed by Larry Lunardi, VP Geophysics. 
  • It is the explosive type and he showed me a picture of a tracked vehicle a little bigger than a 4 wheeler with a drill on it.  They drill down about 20' and charge the hole.
  • There will be a wire of some sort that will lay on the ground for a few weeks.  This he said can be moved back and forth as needed to mow or whetever. 
  • They stay 300' away from dwellings and will work with you on locations.  He did say he didn't know how many charges they would lay or the spacing in between.  He said that was up to the survey crew.
  • Its only being done at this time in Carroll, Stark and Columbiana.
  • The survey area is 306 square miles (17.5 miles x 17.5 miles)
  • They won't share the results
  • This is being paid for by a consortium of oil companies.  He didn't clarify and I didn't think to ask if it was a consortium of drillers, refiners or who exactly.
  • He said the hole and lines will be running East and West
  • He figured it would take about a day to complete.  I have 53 acres but I guess it really depends on like he said the survey crew and what they think
  • It's going to take about a year to complete the testing
  • Tree limbs will be trimmed to get the drilling vehicle through but no trees would be cut down.

 

  

Do you think alot of folks signed for the seismograph to be done? I didnt, not for 3 dollars an acre. 

I don't really know.  I didn't yet either.   Now that I know what it's all about, here's my take on it.  I'm hoping they do this test and see the mother lode below me and turn that drill bit my way.  I'm on route 9 and the thumper trucks went by in 2008 so I think they have an idea what’s below me anyway.   I remember now the story my father told me about the old bull sauntering down the hill to the heifers and the young bull heading out full speed.  Your probably an old bull like me who's learned over time to be patient.  My dad also told me to choose my battles wisely.  I don’t think this will be the couple hundered dollar project I’ll stand my ground on but I'm surley not running down the hill for 3 bucks either. 

i was offered 25 dollars for 2 acres, i think the guy said it was the minimum

We advised Cougar that we did not want them on our land.  That was in November. And that was on advise of our attorney.  This week we received a rather terse letter from an Alliance, Ohio law firm threatening legal action against us if we don't let them do the testing on our 100+ acres.  They did mention $3/acre.  They mention Chesapeake in the letter, but what is the relationship?  Has anyone else received a similar letter?

Was the letter from Geiger Teeple Hahn?  I was in contact with cougar and told them the same thing that I didn't want them on the property for $3 per acre.  The guy thought for $3 per acre I should jump on that and I said I'd pass.   If they are doing the work directly for chesapeake  and you are under lease, there is nothing you can do imho. 

I doubt this though as they are doing this survey for there profit and compiling the info for resale to CHK.      If they are doing it directly for CHK, they should be able to provide the lease # and docs, showing that they are acting as an agent for CHK.   Cougar told me that enervest and/or CHK in my case would do it on there own if needing data for a unit.  

We just received the same letter yesterday from the law firm in Alliance threatening to take us to court if we didn't contact them within 5 days.  Have you heard anything more from them?

We received a letter from Geiger etal almost a month ago.  Many in Knox township in Columbiana County received the same letter.  No court action has been taken.  Mainly, in our situation, they don't have a case.  They are not under contract with CHK.  If they were, they would not need your permission.  They want to sell CHK the data.  They have publicly said this.  My neighbor, who has the resources, is considering buying the information. 

Can anyone post up a copy of this letter?  

For persons being contacted for seismic testing:

Do you have any property already under contract for oil or gas leasing?

If you do, check your contracts for permissions.

If NOT, you may be correct to request they stay off property.

I was advised that that a Seismic Testing Permission Contract template may be forthcoming on this blog soon, if it is not posted already.

Send me your contact, location, status of gas lease contracts, etc if you like.

Doulittle@gmail.com

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