Property "units"

In a earlier discussion Mr. Knapp explained that the gas co. will assign the units for production useing "unit operation designation" filed at the court house, he also explained that these units could be any size because Pa had no legal limits other than what was stated in your lease. In the lease that I have been presented with it stated "no units can exceed 640acres plus 10% or 704 ac. I was wondering what the typical unit size is in Pa? Is it all based on the geological investigations? It's only logical that royalties would be higher for each landowner in a smaller unit. Has anyone heard of a unit that is has a 100acres or less?

 

 

Views: 1988

▶ Reply to This

Replies to This Discussion

Permalink Reply by FXEF on January 19, 2011 at 5:04pm

Gerard,

Yes, 7-8 Mcfd per lateral. 

Permalink Reply by philip andrews on January 15, 2011 at 1:39pm
We are in 2 units. Talisman is the gas co. The unit are in Wells township, Bradford co. Pa. and are 2600' ft. wide and 10,500 ' long. 4 wells are north & 4 wells are south.  At this time a well is being frac with 14 stages north and 14 stages south  .  EACH UNIT IS 640 A. Also the units are next to each other.
Permalink Reply by Sean on January 19, 2011 at 12:45pm
Dear listers, what happens when your property is in the middle of a unit but you are leased with a different company and you are not receiving any royalties while your neighbors are? It feels as if you are being robbed of the gas below your property.
Permalink Reply by FXEF on January 19, 2011 at 5:02pm

Sean,

The O&G company you leased with is responsible to pay you the due royalty. You need to make sure your land is part of the producing unit, then contact your O&G company.

Permalink Reply by Sean on January 20, 2011 at 4:01am
I am not entirely sure I have my facts straight until i talk to my partner again but he said that the company with all the landowners in the unit is talisman and we are signed with chief, and when he contacted chief they said they are not doing any negotiations with talisman to trade leased properties. So we concluded that since they are in a "pissing match", we are like an orphaned child. We did get to see a map of the unit and we have two separate pieces of land that are in the center of the unit. When this all originally came about, no one knew that it might be best for all neighboring properties to sign with the same company. Is this the way to view it? My personal home property is coming to the end of our lease this summer and I don't know if I should just go with the same company my neighbor is signed with since they are drilling a well on him now and i only have 62 acres. Thankyou for any responses, none of this is my expertice any i need to get educated!
Permalink Reply by john ginkel on January 20, 2011 at 4:20am
Has the unit been registered at the courthouse and is producing? Did tilisman make the unit? Has chief ever discussed the unit with you?
Permalink Reply by Sean on January 21, 2011 at 12:48pm

yes the unit is producing and is registered. Talisman made the unit. We contacted Chief and they said eventually it will be traded. But we are concerned about the initial payments being the top heavy payments which decrease over time. Do they back pay you? 

Permalink Reply by Mike Knapp on January 21, 2011 at 3:47am

Sean,

 

In PA, gas companies cannot come within 330' of your property line with their wellbore, specifically to keep your gas from being stolen by a well on a neighboring property. 

 

-Mike

Permalink Reply by bill h on January 21, 2011 at 3:24pm
I've never seen such a statute.  Can you give a reference?
Permalink Reply by FXEF on January 21, 2011 at 3:52pm

Bill, this may be helpful.

Pennsylvania Code

25 Pa. § 79.11. Drilling permits


§ 79.11. Drilling permits.
 (a)  No person may drill a well subject to the act unless a permit under the Oil and Gas Act (58 P. S. § §  601.101—601.605) is obtained and the requirements of the act and this section are met.
 (b)  The requested location of the well may not conflict with a spacing or pooling order previously entered or pending before the Department, and the requested location shall be at least 330 feet from the nearest outside boundary line of the lease on which it is located. If the application is accompanied by a signed or certified copy of a voluntary unitization agreement unitizing all or a portion of the land on which the well is to be located with all other lands or portions thereof lying within 330 feet of the requested location, the permits will not be denied on the basis that the requested location is within 330 feet of the nearest outside boundary of the lease. If the application for a requested location within 330 feet of the nearest outside boundary is not accompanied by a voluntary unitization agreement as set out in the preceding sentence, and if the applicant—being otherwise qualified to receive a permit—desires to request the Department to waive the 330-foot limitation, the applicant may file a statement with the application requesting a hearing before the Department and stating the reasons why the exemption should be granted. Notice as provided in the act will be given to all operators owning land within 330 feet of the requested location. The Department will then determine at the public hearing whether the application for a permit will be granted.

 

Permalink Reply by bill h on January 21, 2011 at 4:54pm
thanks....I wonder about the underground horizontal though....
Permalink Reply by FXEF on January 21, 2011 at 5:18pm

Bill,

BHL and lateral perforations must also maintain the 330 feet from unit boundary line, however I don't where that wording would be found in the code.

 

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service