Replies to This Discussion

Permalink Reply by Brian Day on October 27, 2010 at 1:36pm

All East leases are not the same. As for why the 640 acre units might become a thing ofthe past? Even a horizontal well only draws maybe 150 feet on either side of it. If the horizontal is a mile long or less, this does not constitute 640 acres. It is probably less than 200 acres. Some of you mathamaticians out there can do the calculations. It has been a long day for me and I am too tired to figure it out again. Sorry. Why would the state allow one well to tye up 640 acres and produce only the tax revenue etc. for only one well when it could be drawing taxes off of six wells on the same 640 acres? That is really poor business sense. If the unit sizes are forced down to say 200 acres by the DER, then more land is freed up for higher leases, higher bonuses (higher income tax), higher royalty rates (higher income tax), more wells per acerage (Multiplied Higher Taxes.) A 640 acre unit is a standard from western states where large plots of land are owned by single individuals and are originally sold out as sections (640 acres.) Such a measurement is convinient to O&G companies in so many ways.

Permalink Reply by Lynn Wigglesworth on October 27, 2010 at 2:39pm

East's plan is to put 6 horizontal wells per pad. There are 3 running NW and 3 running SE (that's the way the natural cracks in the Marcellus generally run), spaced 1000' (I think) apart. I haven't done the math, but I've seen a unit map (it was a rectangular unit, maybe 2 miles long), and those wells seemed to fill up the 640 acre unit pretty well.

Permalink Reply by Mike Herceg on November 8, 2010 at 1:43am

Were you notified that you were in a unit ? and do you know who is in the unit with you ? Was there any drill site within the unit ?

Permalink Reply by Lynn Wigglesworth on November 8, 2010 at 6:42am

If you are asking me, I'm not leased. There is a well (vertical) drilled near me, and the unit is declared (it goes around my property...I'm in the way of one of the horizontals). The well was drilled over 2 years ago, and there's no sign of drilling the horizontals or putting down the many miles of pipeline needed to hook it up. East hasn't even made me the current offer of $2000/15%...the best offer I ever got was $1500/15%. I suspect it will be years before they really need my property to finish the horizontals.

Permalink Reply by Sandra Earnest on September 7, 2010 at 8:11am

You don't get aby royalties until your gas well is on line. Then the cash comes in.

Permalink Reply by Jim Bob on September 7, 2010 at 9:06am

I understand this. I was just asking if anyone on here was currently getting them. I know a lot of people who have leased but have never spoken with anyone who was getting royalties.

Permalink Reply by Lynn Wigglesworth on September 7, 2010 at 9:09am

Me either. Not in Tioga county, anyway.

Permalink Reply by Jim Bob on September 7, 2010 at 11:19am

I know that Lynn said there are none in the Delmar/Shippen area. Are there any completed outgoing lines in Tioga County?

Permalink Reply by Scott Blumenstock on September 9, 2010 at 5:47am

I am planning on a shut in clause that I have seen in a few leases that give the company 180 days to hook up to a pipeline or they start paying a fee. A friend of mine with just two acres in a lease gets 45$/day for any shut in wells. I only have 50 acres, but my plan is for 100$/day for shut ins over 180. After all, they could theoretically shut in a well and not tap it for 10 years.

Permalink Reply by 2pwyhp2o205y9 on September 9, 2010 at 5:54am

Interesting idea Scott. I hope someone in here can give us a basic clause to use if we ever have a chance.

Permalink Reply by Lynn Wigglesworth on September 9, 2010 at 6:13am

Good luck! Sounds like a good clause to have. I hope you can find a company that will agree to it.

Permalink Reply by paleface on September 10, 2010 at 12:39am

Scott the shut in is usally paid by the acre from $5.00-$200.00 is what i've seen?

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