Permit Lookup

It looks like a well has been permitted on our neighbor's farm.

Is there a website I can go to find the actual permit application?  I would like to see how our farm fits into the unit that was put together for this well.

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Permalink Reply by Dolores Chobert on August 10, 2010 at 2:07am
http://www.ahs2.dep.state.pa.us/enoticeweb/
This is the DEP website. If you register they'll email you the permit notices and keep you updated
Permalink Reply by Steve on August 10, 2010 at 6:29am
Yep. I spent some time on that site and was able to locate the permit. I did not, however, find the specific information I was looking for. I want to find what acreage is included in the unit for this well.
Permalink Reply by Dolores Chobert on August 10, 2010 at 9:14am
try calling the gas company you leased with . thats what we did . they usually have an idea.
Permalink Reply by John Weightman on August 11, 2010 at 6:43am
Hello Steve
What do you mean when you say unit ?
The main question I have is: When a horizontal well is drilled who is entitled to royalties ?
When I hear the word unit I think of the 640 acre unit the state is drafting legislature currently.
Any clarification is greatly appreciated.
Thanks
Permalink Reply by Steve on August 11, 2010 at 6:53am
Bottom line is that I'm trying to figure out what financial impact of this well might be for us. I've seen royalty calculators where you need to know how much of your acreage is included in the overall acreage. My father called me last night to say there is equipment out there preparing the site. We have another 10 acres owned by my brother and I that was not leased. I appreciate the feedback.

Steve


Authorization ID: 840064
Permit Number: 129-28405
Site: FRYE 12H OG WELL
Client: Atlas Resources LLC
Issued 7/13/10
Permalink Reply by LAE on August 11, 2010 at 10:25am
A unit is not declared until gas flow to market, so that information doesn't exist yet.
Permalink Reply by Arla Woodling on September 4, 2010 at 3:44am
From my research, a unit is determined before the permit is applied for and issued. Also, one may have a 150 acre property under lease, but only 10 acres may be included in a particular unit. Meaning, you would only be entitled to royalties on the 10 acres, whether the drilling was done directly under your 10 acres or not if the well produces. Many people I have talked to think because their entire farm is leased they will receive royalties based on the total acreage, which is not correct, if the entire farm is not in the unit. Am seeing many persons with leases buying things anticipating they will be getting rich off their lease; caution has gone out the window, as they may never get a well on their property or be included in a unit and could possibly lose their property to bankruptcy. Greed can cause reasonable people to do unreasonable things.
Permalink Reply by hunter777 on September 4, 2010 at 4:38am
Both are correct.

When the gas company is applying for a permit they must present a proposed unit size/shape, however after production starts they determine the actual area that is drained to come up with the final unitization, which the state must approve. This is because things don't always go according to plan when drilling, such as the horizontal leg may not be able to be drilled as long as they planned, or there may be other geology issues.

At that point they send the unit map to each landowner included in the unit for signatures. It is important at this point to check the decimal interest on the division order, since that is what you will see on your check. The decimal interest is your included acreage divided by the total unit acreage times the royalty percentage in decimal form.

Example: you have 20 acres in a 200 acre unit and 15% royalty: 20/200=.1X.15=.015

Hope this helps.
Permalink Reply by Dolores Chobert on August 12, 2010 at 2:06am
we knew how many acres were in the unit before it went to market. The gas co. told us. we're with Ultra. I also went to the courthouse and looked it up. It doesn't hurt to cal te co. and ask them.
Permalink Reply by Carol on August 13, 2010 at 1:01am
That's not necessarily correct - my land is already in a unit, it has been recorded at the recorder of deeds, and the gas company has not even applied for a drilling permit yet. Depending on what county you are in, you could search the recorder of deeds website - search on the last name of the property owner of the well site - that's how I found out my unit was recorded. Also, the DCNR can provide you with detailed maps and other information concerning the well permits - much more than what is available on the DEP website. Go to the DCNR website and there is a contact link. They are very quick to respond and will mail or email you copies of well plats.
Permalink Reply by Carol on August 13, 2010 at 1:04am
To clarify my last reply - I meant that LAE is not correct - a unit is created long before the gas goes to market. The unit must be created before drilling starts. Otherwise, the gas company would not be permitted to drill under land that is not in the unit.

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