Replies to This Discussion

Permalink Reply by MJ on May 7, 2013 at 3:31pm

why would'nt they?   I personally don't know the answer to your question julie.  Just sayin....

Permalink Reply by Julie on May 8, 2013 at 7:24am

I have learned not to assume anything. I am trying to learn and understand the workings of the oil and gas business as it relates to the landowner and our area. If anyone has knowledge as to if and how the various drillers share the pipelines I would appreciate your input.

Permalink Reply by 0i7okn54zwbdo on May 8, 2013 at 7:35am

They wouldn't share the smaller lines that they run from one well to a gathering or transmission line.  those are laid from point A to point B and service just one well (or potentially several from one pad).  Those kinds of lines usually are not shared.  The larger gathering lines, like the liquids lines being put in all over the state, are for anyone who wants to pay to put their stuff in.  Those are typically built by the midstream operators.  Hilcorp and NiSource have a joint agreement here in Mahoning county, which isn't unusual.  If someone wants to egt in to that line they'd have to pay.

Permalink Reply by Julie on May 8, 2013 at 7:51am

Thanks Marcus for your reply. Do companies like BP OR Halcon ever install the larger gathering lines?

Permalink Reply by 0i7okn54zwbdo on May 8, 2013 at 8:49am

Usually not.  The risk is pretty high in the oil and gas industry.  When you consider how much money a company has invested in an area it's tough for them to compound that risk by adding hundreds of millions more into the pipeline and/or processing business.  The Hilcorp/NiSource deal is special in that they both get what they want and they share the cost burden.  That's less common once a company is either public or gets to a certain size.  Halcon will invest in literally any stupid get-rich-quick scheme, so it wouldn't surprise me if they jumped into the midstream business.  I'm shocked they're not selling Sham-Wows.

Permalink Reply by Julie on May 8, 2013 at 4:42pm

Marcus, I have heard that Halcon has been approaching people here in Ohio and signed some for a pipeline, a 16 inch pipe I believe.

Permalink Reply by 0i7okn54zwbdo on May 9, 2013 at 1:52am

I heard that too.  I'm wondering if they're planning on building their own mini-system that services just their proposed wells.  Still gathering information on that subject.

Permalink Reply by Julie on May 9, 2013 at 3:49pm

Marcus, if you find out any further info, please post it. Thanks

Permalink Reply by Steven Kacerski on May 10, 2013 at 8:57am

Marcus,

I had an agent stop at my farm last week who was contracted by Halcon to sign people up for a proposed pipeline to go from the Brugler well south to Petersburg.  Total length would be about 40 miles and would start next year. The company scheduled to install the pipeline is Polaris Energy Services LLC. It would be a 16 inch line. There is currently a pipeline being laid for the Brugler well that is going to the north. There has also been pipeline laid for Halcon's Phillips well in Mercer County to lead to a compressor station.

Permalink Reply by 0i7okn54zwbdo on May 10, 2013 at 9:06am

The line from Phillips to the compressor station will be a private one that Halcon will use for their wells in the area.  This new line that you speak of (I heard rumblings about this but you are the first to confirm) sounds like a small gathering line for surrounding production from outside of the Halcon family.  Wonder why they're doing that?

Permalink Reply by Steven Kacerski on May 10, 2013 at 9:13am

The agent did tell us it would be a gathering line.  He told me the plan is to transport the gas to a processing facility in Petersburg. He didn't provide us with an agreement to review. He was only there for a preliminary meeting to take our tempature on the idea. I told him he should put the pipeline on my neighbor's property since they are signed with Halcon and Halcon is the one putting in the pipeline. 

He also told us Halcon would only limit the number of pipelines per agreement to two.  They would not do a separate agreement for each individual pipeline. 

Permalink Reply by 0i7okn54zwbdo on May 10, 2013 at 9:31am

"They would not do a separate agreement for each individual pipeline. "

That's common.  They should pay you a price per inch per foot.  So for example one 16' line @$1/in/ft. would pay $16/ft.  Two would pay $32/ft. etc.