Replies to This Discussion

Permalink Reply by CJK on March 29, 2010 at 6:55am

No they do not. Every company is doing things a little differently. I know of one well where they put in for three horizontals and they only drilled one. All they did was put two additional pieces of pipe in the ground to preserve the drilling permit for a future date. It is my opinion that the companies are now only going to drill one horizontal so that they can get as much land locked in as possible.

Permalink Reply by CJK on March 29, 2010 at 7:40am

What is really important with regards to this issue is that when a property owner negogiates a surface use agreement among many other things they should have it specifically state a completion date otherwise the disturbance from the gas company can be more than once and there can be several years in between each distubance. This is just one of many considerations in surface use agreements.

Permalink Reply by marilyn ascani on April 8, 2010 at 1:53am

You dont get royalties until 90 days after the well is producing and gas is in the pipeline to the market.

Permalink Reply by J. Greg Myers, P.G., P.E. on April 8, 2010 at 4:40am

Not at the same time but likely in sequence (one after the other)

Permalink Reply by J. Greg Myers, P.G., P.E. on April 8, 2010 at 4:41am

Royalty timing depends on the time it takes to get the gas to market. Proximity to major transmission lines is the key. It could take years. If you lease has limitation on this than that is the key.