gas propduction in gas storage feild

we have 360 acres of land on the pa boarder.currently it is in a storage feild at the ariskiny level,can marcellus gas be produced here with the storage feild

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Permalink Reply by Philip Brutz on September 15, 2014 at 12:46pm

Inchworm Antenna is very knowledgeable on this subject.  You want to friend them. http://www.google.com/cse?cx=partner-pub-4090140519734877:360646248... 

Permalink Reply by dr j on September 15, 2014 at 3:53pm

Yes.

Permalink Reply by paleface on September 16, 2014 at 12:23am

 So far Dominion hasen't allowed drilling in that storage field.

Permalink Reply by Jack Young on September 16, 2014 at 2:39am

I'm afraid you can't produce the Marcellus in an Oriskany storage field without impacting the storage operations because the fractures will penetrate both and you'll end up producing storage gas along with what comes from the Marcellus. The storage field operators won't allow this, and their storage operations are protected by federal regulation. The only hope is that eventually there will be so much excess gas around winter and summer that so many storage fields won't be needed and some can be decommissioned. Sorry to have bad news, but we have lots of acreage in storage fields and had these discussions with the operators years ago. Their positions are very clear, and there's no way to force them to change them.

Permalink Reply by dr j on September 16, 2014 at 8:07am

Search "storage field' on this site.   I may be speaking out of turn ie Oriskany/Marcellus but they are certainly drilling "through" storage fields in the Berea sandstone - which are DGF ( depleted gas field) storage fields to produce the Utica.  

In my experience, if "they" tell you they cannot drill through a storage field to "protect" their field, they more than likely trying to protect something else...... like their potential ability to gain from what's below that field.  

Think about it - they are casing these wells through thousands of feet of geological formations, they can case it through a storage field. 

Permalink Reply by pg guy on September 16, 2014 at 6:52am
Jack -
What are odds that they would permit drilling through the Marcellus to the Utica, where Utica is prospective? There would be a couple thousand feet of rock between the Utica and the Oriskany, the biggest issue (as I understand things) would be to be sure of an effective casing program through the Oriskany and Marcellus.

Also - if there is a chance that well completions in the Marcellus could result in product being produced from the Oriskany, what about the possibility of Oriskany storage wells producing Marcellus hydrocarbons when Oriskany storage pressures are drawn down? Any possiblity that Oriskany completions for storage (or prior to conversion to storage) would also have penetrated the top of the Marcellus?
Permalink Reply by paleface on September 16, 2014 at 8:46am

 Jim Maxwell what township is your property in? It might be a Utica area.

Permalink Reply by Jack Young on September 16, 2014 at 12:50pm

There's no question that storage wells in the Oriskany can produce gas from the adjacent Marcellus - the storage companies admit that privately. And they often end up with more gas at the end of a number of injection/withdrawal cycles than they started with, and that may be why. Typically nobody gets paid a royalty in this extra gas either - it's a little secret the operators keep to themselves.

Typically the storage operator won't want any formation completed that's within about 250' above or below the storage reservoir. So the Utica could definitely be produced under an Oriskany storage field quite safely. The storage operator typically has leases covering all depths, however - old 1/8th royalty leases that will last as long as the storage field remains active. So it's very unlikely that anyone besides the field's operator will ever test or produce the Utica there. As long as they case effectively through the storage reservoir, as you suggested, there's no reason they can't go for the Utica one day. But it will be their call when and if that happens, unfortunately.

Permalink Reply by Gringo on September 16, 2014 at 1:36pm

Long read but informative.

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Permalink Reply by dr j on September 16, 2014 at 2:23pm

Jack,

A good informative reply to your reply would entail a summary of several years of research and more time than I have at present.  The storage leases are some of the most interesting documents in this whole "gas play" thing and are the subject of not a little litigation.  Since most "field operators" are not producers, they won't produce the field...... but will try to find a producer who can.   And they have.   

If you are bored and have several hours, search "Brinker Storage Field" on this site.   It's a Columbia Gas storage field.  Columbia has "partnered" with Hilcorp to produce the Utica and there are active producing wells on the field.   The leases were subject to extensive litigation with multiple outcomes.    Once again too lengthy for this forum.   Just suffice it to say the "only" reason there is any caution on the operators part to producing  the formations under a storage field, is legally determining if their leases allow them to do so.  

And yes, many storage fields "return" more gas than was injected. 

Permalink Reply by Jack Young on September 17, 2014 at 1:23am

Clearly you imagine yourself an expert. Sadly, your main point about the reason the deeper rights aren't being developed is completely wrong! (How many actual storage leases have you read?) I'll stick with my position on this one, as I know that's how the industry (and the courts) view the situation as regards the standard storage lease.

Permalink Reply by dr j on September 17, 2014 at 2:09am

I don't consider myself an expert but I do have some personal experience.  I will stand by my point based on my personal experience.   I have read quite a few storage leases. 

You can certainly stick with your position -  I have no idea of your background as you have no idea about mine.  Not only have I read storage leases, I have dealt with "the industry" and "the courts" in regard to storage leases.  

Experience trumps theory many times...... 

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