Multiple wells AND multiple units Per pad!

I've noticed some O&G co.s are now drilling multiple wells on their pads in Ohio, but also dividing each lateral into their own 160/or so, acre drilling units.This defeats the idea of drilling one well and holding 640 acres or 1280 acres by production. It also keeps every mineral owner within the 1280 acres from having to share the royalties with everyone else in the big units. If your property is within the first drilling unit, you will get royalties from that lateral only,but not what comes from all the others. I'm having a problem putting my finger on what the reason is for this is. In Carroll co. CHPK has been all about getting 1280 acre units, even if only one well per pad.  Now in Guernsey co. the 4/5 well pads are dividing up each lateral into individual units. Go figure.

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Permalink Reply by Mike Fulper on March 4, 2013 at 11:10am

You only need to ask a DIRECT question to any landman...

Also.. ask any driller....ask EQT...

Did you go to the EQT meeting in Deerasic Park...

They will NOT lie to you...

Sorry.. its all true.....:(

Permalink Reply by Jack Straw on March 5, 2013 at 1:19pm

 

You only need to ask a DIRECT question to any landman...

They will NOT lie to you...

It is just that the TRUTH changes on a minute by minute basis...

What was the TRUTH a minute ago might now be a LIE...

To quote Bill Clinton: "It depends upon what the meaning of the word 'is' is."

One minute the TRUTH is the TRUTH, the next minute there is a new TRUTH that might be the opposite of the old TRUTH.

 

Sorry.. its all true.....:(

 

Permalink Reply by archibald on May 19, 2014 at 3:10pm

"ask EQT....They [EQT] will NOT lie to you..."

That's a pretty confident statement.  And, at least per my experiences with EQT, your confidence is misplaced.

Permalink Reply by Linda Masters on March 5, 2013 at 11:59am

If your land is in the opposite direction of the drilling site - you won't get royalties as far as I understand.

We were told that they usually drill 2 in the NW and 2 in SE direction from the well head.  If you have enough acreage you may be lucky enough to get royalties from 2 of them.  Thats just what I've been told, not concrete facts written in stone anywhere.

My son will have two laterals going through his property - they are the first two to be drilled in the Mercer County - James well.  It will be a 640 acre unit, so we'll see what happens with the rest.

 

Permalink Reply by James Foster on May 20, 2014 at 7:12am

In Ohio:

Drilling unit is shown in unit acre drawing is for ODNR only.  Shows set back requirements are met and that land is leased,  They hire surveyors to do the drawings for them.  It shows a drilling unit for a specific well on a pad. Shows who owns the land.  Company must show that landowners are leased or submit request for forced pooling hearing along with $5000 in addition to the $500 for standard permit. Unit acre drawing is on file at ODNR for each well.

The production unit is shown in division orders and filed at recorders office and hopefully landowners get a copy.  It is who will be paid from the well(s) in this unit.  The lease is what determines the size of the production unit.  You could have approx three wells in a 640 acre production unit and 6 in a 1280 based on set back rules.  So a well pad could have 6 wells, 6 individual drilling units on 1280 acres and be one production unit.  All in that unit receive money from all six wells. 

Many production units here are only 640 due to ALOV and other leases that limited the size of the production unit.  So you have 3 drilling units north and 3 drilling units south each making up a 640 acre production unit the company needs to drill one well in each direction.  If you have a 1280 then one well drilled and producing will hold the 1280 by production.  We see lots of pads with two wells one in each direction and also a few that have just one well.

Permalink Reply by evan on May 20, 2014 at 7:19am
Hey James what happens if a company puts a unit together and gets a permit but doesn't have all the land in the unit leased, this was done just to keep leases from expiring.

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