I have six acres in Carroll County. I have been requested by Chesapeak to modify an old lease on my property to increase the size of the drilling unit. I asked in exchange that they increase the 12.5% royalty but they refused. They say they can go around me as long as the drill bore is 500feet from my property line. My question is can they do this. Does the horizontal drilling bore just go in a straight line or can they steer the bore around a property that has no lease. If it only goes in a straight line, it seems my bargaining power goes up as my property would block those behind me.
Henry are they asking you sign a new least or an addendum? Will they have the right place the pad on your land? A modern drilling pad would take up a good part of your land. If you live on the property consider how it will change your life.
This was in the CHK lease that they wanted me to sign:
the right to drill injection wells to dispose of "brine, completion and production fluids, waste water and any hydrocarbon related substances from any source, including, but not limited to wells on the Leasehold or lands pooled or unitized therewith or from properties and lands outside the Leasehold or pooled or unitized therewith, and to conduct all operations as may be required, for so long as necessary and required by Lessee for purposes as herein provided."
All for the sum of $1000 per year total, not per acre per year.
They are asking for a modification of an old lease. I was shown the map and told that they plan on putting the pad down the road but the old lease would allow them to put it anywhere on the original leased farm(since divided) as long as it was 200 feet from the farm house and barn. It does allow them to use water on my land but not disposal wells. Do they file the unit map at the recorders? I need to get a copy.