pipeline

 

As I recall from some earlier post most of the right of ways are in place for a pipeline ( is it called the north beaver pipeline? ) running to the thompson well site.

I think some work has commenced on this project but have not seen anything such as actual pipe being put in place.  Waterlines yes ( I believe to tharp pad ) but no pipeline/infrastructure.  The fact they are putting/spending money on waterlines to that pad is a good sign though.  I am guessing more wells to drill and frac soon. 

 

So, even if the right of ways are in place has anyone heard of an expected time of completion on this project?  As everyone knows without it in place, there will just be alot of wells shut in with no production.  Some leases dictate production or limit the shut in period or the lease expires.

Of course I suppose they could just revert to trucking product away from well sites if need be and thus avoid any leases expiring and I do not think any leases state how much has to be produced.

 

Thanks for any info on pipeline progress.  If I see/hear anything I will post it. 

 

MLB

 

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Replies to This Discussion

Permalink Reply by Larry Livengood on July 4, 2012 at 2:16pm

Yep, and it looks like they're making a bee line for the Tharpe Pad.  Left turn, and onto Burdick Pad, down the Road to Fedrochaks.  Could tie up a lot of land in a hurry.  All within a couple miles.

Permalink Reply by Larry Livengood on July 5, 2012 at 2:16am

They have followed the Marathon ROW from the Thompson well across Lehi and crossed Lisbon, made the turn and heading to Tharpe.    They have moved a lot of dirt and have the construction ROW about cleared for that portion of the line.  I have a question about what happened to all the brown bats they were worried about out at the McRoberts pad in April.   Don't they live over in this part of the county?  Just asking.

Permalink Reply by craig on July 5, 2012 at 1:40pm

Larry,

A relative owns 100+ acres near the Thompson well and was told by a company Chesapeake had hired that the kind of trees that support the brown bats are not numerous enough in that area for any action to be taken. Go figure that one!
I too just drove past the ROW you speak of and you are spot on in your descriptions of what is going on.

I don't understand your statement  in the post above the last one about this tying up a bunch of land in a hurry. Please expound how a ROW will tie a lease up....if that is what you meant.

Permalink Reply by Larry Livengood on July 5, 2012 at 1:57pm

I wasn't talking about ROWs tying up land.  That will be five units in the immediate area of Lisbon & Wildwood -  Petrik, Thompson, Tharpe, Burdick, Fedorchak.  That is a lot of property in the immediate area.  When you look at the Kerry, Powell, etc..... this end of the county is tied up.

On another note... my neighbor ( in Burdick unit) just received his $1 an acre shut in payment to hold his lease from Chesapeake until they can get into production. Lease was due to run out this month, and they are using the shut in royalty instead of playing with HBP.  Fascinating. 

Permalink Reply by craig on July 6, 2012 at 1:48am

Yep, my relative received his shut in check for being in the Tharpe unit a month or so ago, just a few weeks before his lease ran out as well. 

Permalink Reply by mlb on July 10, 2012 at 5:40am

I see they are working on the pipeline on Fredericktown road.  I stopped and asked if this was going to hook up and be part of the north beaver pipeline.  The worker said for now this is just connecting to well pads but eventually will go out towards rolling acres.  Does this info make sense?  Has anyone seen similar work.

 

I'm skeptical of how soon they will move to put a pipeline all the way to rolling acres considering they have scrapped some well sites nearby that pad including mine.  I'd think if they wanted to go there soon they woud also be drilling the additional wells but time will tell.  My lease has a little over 5 yrs left on it and I am not HBP so sooner or later I will have some more concrete answers.  Tks.

Permalink Reply by craig on July 12, 2012 at 2:58pm

mlb,

I just checked out the Thompson site which I haven't been to in 3-4 months. They have a new empty small 'pad' amongst the other 3 small pads that already have various processing equipment on them. I suspect this new pad has something to do with the soon to arrive gathering system pipelines. 

The ROW for the pipeline from Tharp etc is now cleared all the way to Thompson it appears.

I believe you will see the line continued to Rolling Acres and Maga sites or North to the Powell and kerry sites next. 

I'll bet my bottom dollar that you will be included in a unit before your lease runs out. Very few folks so far have been offered a top lease to my knowledge. Most have been unitized or will be before their lease runs out. My lease runs out a little less than 1 year from now. If they are going to HBP my lease, they better get the ball rollin' nearby. Of course the Gordon permitted pad is close but not close enough. 

Stay in touch.

Permalink Reply by mkf on July 12, 2012 at 9:47pm

What is HBP?

We were offered a top lease in December (our lease runs out in November).  They wanted to pay us 10% of the sign up bonus and if they hadn't started by November, they would pay us the remaining 90%.  But they wanted us to sign for another 10 years.  I already knew they would drill before November and was wondering why they would bother to give us the 10%.  We didn't sign.

Permalink Reply by craig on July 13, 2012 at 3:37am

First off, that is BS wanting to pay you 10% of the bonus and then if they don't drill by the original lease expiration paying the balance of 90%. From my viewpoint, a top lease is a new lease and should be treated as same. You should be able to re-negotiate items as well. They may not like it though. 

Have  they drilled the well yet? 

HBP, means Held By Production, ie the well is drilled and ready to produce, but not producing for various reasons(no infrastructure finished etc.) or is producing.... Usually there is a time limit that they can HBP without selling any product, then they have to declare it as shut in, which then makes them pay you a shut-in amount per year. Which usually is peanuts per acre. 

Don't be signing any 10 year lease or top lease, alot can change in 10 years! I'd be telling them 5 years max....maybe even try for 3 yrs. 

Permalink Reply by mkf on July 13, 2012 at 11:05pm

We didn't sign and they haven't contacted us again.  I figured if they were willing to give us the 10%, knowing they would be drilling and didn't have to pay us, they have an idea something is going to happen in the next 10 years that the O&G lease doesn't cover.  They are drilling now.

Permalink Reply by craig on July 14, 2012 at 2:01am

You must have an old O+G lease from the Ohio folks.  If so, you are right about that lease not covering something they want. With the old lease from O+G I don't believe they have the ability to form these large units that they desire. Our families have the same lease, and they wanted us to sign an addendum that would allow them to essentially do what they can do with the newer leases. I suspect you are on their chit list as some of us others are, because they didn't get their way. They haven't been talking to us either, and I don't see how they will be able to drill the way they want to in our immediate area.

Are they drilling on your property or adjacent property?

Permalink Reply by mkf on July 14, 2012 at 11:14pm

Ours.  Strange.  I posted on the other discussion that I haven't seen the unit papers filed.  I wonder if that's why.  One guy from Mason Dixon told me the only reason they wanted us to sign the addendum is because O&G's was filed in Ohio so they had to file their permit to drill differently.  Apparently they did.

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