3-D Geophysical Survey

   I've had a recent request from a company to perform a 3-D geophysical survey on my property located in the Ohio Utica Shale region and under an O&G lease to a major producer. Has anyone had experience with this technology, positive or negative? I've been offered a nominal fee per acre for this. Any others who've had similar proposals? The company claims to be independent, and desires to market the results to O&G companies operating in the Utica region.

   Based on experiences described by various GMS subscribers on this website, It's difficult to trust any company's stated intentions. An unfortunate fact of life.

BluFlame

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Permalink Reply by Dustin on April 13, 2012 at 6:08am

Whose seismic company?  They have shot fiberoptic and 3D through my town and had one or the other go across our land.  Wouldnt even know they have been there after they leave except for the small dirt spots where they drilled.  as far as i know they stretch the seismic line across a specific location and bore small diameter holes and put a charge down them and record the activity.  Minimally invasive...and it may help your opportunity for a lease in the long run.  I personally know the owners of one of the geophysical companies around here and hes a good guy...i let them run the seismic for nothing. 

Permalink Reply by Jack Straw on April 13, 2012 at 6:41am

Geophysical Contractors shoot seismic surveys expecting compensation by structuring the survey in one of three ways:

1). They shoot the survey for one client, at a guaranteed price. The data will be proprietary solely to the client who contracts for the survey. This is typically referred to as a "Proprietary Survey".

 

2). Or, they shoot the survey for a numbers of clients, each of which shares in the total cost. Each client subscribes to participate in advance; each client will have proprietary possession of the ensuing data. The Geophysical Contractor knows how much they will be receiving before the start of the survey. This is typically referred to as a "Group Shoot",

 

3). Or, the Geophysical Contractor endeavors to shoot the survey - speculating that they will be able to sell the data to a sufficient number of purchasers such that they recover their costs plus make a profit. From a profitability standpoint, this is the riskiest (but does have the potential for the greatest rewards - should there be a lot of interest in the particular area). This is typically referred to as a "Spec Survey".

My guess is that you are dealing with a company that wants to shoot a "Spec Survey"; but, with the above definitions you should know what to ask in order to find out.

 

Oil & Gas Companies are more likely to drill wells in areas in which seismic data are available. The availability of subsurface data reduces their risks of drilling a dry or subpar well. So, if you are interested in having your land participate in a well, it could be to your advantage that seismic data becomes available.

 

As to compensation; it does tend to be minimal. The Geophysical Contractors are service companies, they do not participate in any Oil or Gas that might result from drilling. These companies hope to be profitable, but do not get a share in any riches resulting from subsequent drilling.

There are two types of energy source:

The first of these is Vibrator Trucks which impart energy into the Earth by lowering a heavy steel plate onto the surface ground and use the weight of the truck and hydraulics to vibrate the plate over a sweep of frequencies.

The second energy source is provided by shallow drilled shot holes (with a small explosive charge). These holes might be drilled to something like 25 feet.

The compensation for shot holes should be more than for Vibrator Trucks (as shot holes can be more intrusive).

The method of recording the data is essentially the same (regardless of energy source).

The method of processing the data varies slightly, depending upon the type of energy source.

 

All IMHO,

                   JS

 

 

 

 

Permalink Reply by Bluflame on April 16, 2012 at 1:46am

Jack, Dustin & Kathleen,

   Thank you for your informative messages. This is the best aspect of GMS!  Robert, my property is in Belmont County.

Sincerely,

BluFlame

Permalink Reply by Kathleen on April 13, 2012 at 6:55am
We have a seismic company working a large area here now. Besides the fact they are keeping the ribbon companies in business by flaging who gave permission (blue and white) other colors for the survey, than i think the third color is where they are finished but that one is a guess, I haven't had any problems with them and enjoyed talking to the gps guys that are apart of this process.
The minimum pricing here was 25 dollars or 3 dollars per acre. Basically no one got less than the 25 no matter how small their parcel was.
I've heard of other parts of the country getting more but not by that much. I have seen them go around the neighbors in the area that didn't give permission. I asked what happens in that situation and was told when the geo mapping is done those areas will just be a black spot on the map. And they will not give you the results for what is under your property, I'm sorry to say. I've heard there is two methods one using thumper trucks and the other using soda can size charges dropped into holes dug by the co. Part of the flagging is so they stay so far away from wells and septic tanks. Are area is being done with the explosives and again I have no complaints.
Permalink Reply by Robert Stamper on April 14, 2012 at 3:17am

What county are you in? 

thank You,

Greater Perrry County Landowners Group

 

Permalink Reply by Jack Straw on April 27, 2012 at 2:43pm

canceled

Permalink Reply by frank speaker on May 1, 2012 at 7:57am

they hope to sell the survey for 200 million dollars. Am I being too greedy to ask for more than $5/acre when they are selling the info for $1,000/acre?

Permalink Reply by Josh on May 1, 2012 at 8:37am

I dont think your being greedy and I heard they want to sell the info for aloy more than $1000/acre.   To me that doesn't even make sense.

Permalink Reply by Jack Straw on May 1, 2012 at 11:24am

RE: "they hope to sell the survey for 200 million dollars"

That seems to me to be a highly excessive amount, where did you get that figure from?

I think that your $1000/acre is too high and 200 million dollars for a single survey is much too high.

It would have to cover an absolutely huge area; 200 million dollars @ $1000/acre would be 200,000 acres - or  312.5 square miles - a square 18 miles x 18 miles.

Unless you have very large acreage that is not strung out, they can "undershoot" you without permission or payment. They will lose some fold (coverage) of the shallower section. Perhaps a little degradation of data at the depths of interest - but they can shoot (or vibrate) at additional stations on nearby property and still get the data they want from beneath your property.

Their energy source will either be small explosions in shallow (about 25' deep) shotholes, ot they will use vibrator trucks; likely shotholes.

If they are using shotholes, you might argue for an amount in excess of $5/acre - you might get $10/acre if you are lucky.

But, keep in mind that they might just "undershoot" your land; then they still get the data, and you get nothing.

 

JS

 

 

 

 

Permalink Reply by frank speaker on May 1, 2012 at 1:35pm

The survey as planned will cover 300sq. mi. It is indeed very expensive; they'll need a helicoptor to get on the property and will be lucky not to crash land. They want the right to enter the land in perpetuity. They'll compensate for damages above normal wear and tear (what does that mean?) but won't compensate for damage to a tenant's property. They already skip over properties and have many refusals so their receipts per acre surveyed will be far more than $1000/acre. Against that an offer of $5/acre seems wholly unbalanced.

Permalink Reply by Jack Straw on May 1, 2012 at 2:37pm

Who is the Seismic Contractor that has approached you?

In what State and County and Township are you located?

 

RE: "they hope to sell the survey for 200 million dollars"

That seems to me to be a high amount, where did you get that figure from?

RE: "they are selling the info for $1,000/acre"

That seems to me to be a high amount, where did you get that figure from?

RE: "they'll need a helicoptor to get on the property and will be lucky not to crash land."

Helicopter crashes do occur, but civilian helicopter crashes are a rather uncommon occurance. What is special about this particular situation that they would be lucky not to crash?

RE: "They already skip over properties and have many refusals so their receipts per acre surveyed will be far more than $1000/acre."

Where did you get that information and figure from?

I detect a lot of hyperbole in your post.

It seems as though you are not interested in participating in leasing or having well(s) drilled.

It is likely best that you set this out.

Anyways, they will probably just undershoot your land and get the data they want in that fashion.

 

All IMHO,

                JS

Permalink Reply by Dustin on May 1, 2012 at 11:27am
In my opinion yes that's greedy...but ask for what u want. They aren't taking anything from your land, they aren't destroying anything on your land and they are out to make a profit too. If u ask for that prepare to be the blank spot on the map. Then your chances for the real money of bonus and royalties go down. Ask for what u want but b realistic. I'm guessing the cost of these operations per acre is pretty high with electrical equipment, cables, man power and heavy equipment.

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