determining a unit

Does anyone know if a unit is predetermined prior to the application for a gas well permit?

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Permalink Reply by Stephanie Lindquist on May 20, 2013 at 10:58am

So far the other gas co has done GPS tracking on our wells and septic and done water testing on our well. What concerns me is the close proximity of the well pad being 1000 feet from my primary water source  and it not even being my well or the company that I am leased with.

Permalink Reply by Keith A Williams on May 20, 2013 at 2:15pm

Booger,

All the language in the lease is about the PRODUCTION UNIT. The DRILLING UNIT again is only to satisfy the ODNR requirements.

The drilling company most definitely is going to declare the largest production unit that the leases allow. We just need to remember that all the leases must be considered together. If one lease says the max unit size is 160, then the max is 160 for that production unit. If a parcel does not have a horizontal pugh clause, then the company only needs to include 1 (?) acre in the PU in order to hold all the acres covered by that lease. If there is a pugh clause, then you might see an off set to include all the acres in that lease. Remember the drilling company has to balance all these factors together and then meet the companies goals. The Goal may be just to HBP as much as they can. The goal may be to max the number of wells that they can get in an area. Just think of all the complications!!!

HTH

Keith

Permalink Reply by Booger on May 20, 2013 at 2:44pm

Keith,

thanks..........i assume the majority of leases, probably all recent leases contain a pugh....but i'm pretty sure the well was producing for some time before they declared a larger unit, including 5 of his acres.......maybe they had to wait to get some neighboring landowners to amend their acreage limitations.......we just assumed they had to do it to hbp.

Permalink Reply by Jeffrey E. Fort on May 21, 2013 at 3:58am

After reading this discussion, I would like to add one thing. Every producing well has to be 1,000 feet from another well and 500 feet from a unit boundary. The idea is that the well will drain out to 500 feet. Actually, although I am just an attorney, I believe microseismic would show that fracking "reaches out" something less than 500', say 350', and the production begins where the boring pierces the formation. As for terminology, check out a blog I wrote at http://www.oilandgaslawreport.com. "Oil and Gas Terms ... Confused?"

Permalink Reply by Joseph-Ohio on May 21, 2013 at 4:22am

A horizontal lateral setback from a unit boundary vs. a 350' fracture reach would leave 150' undrained doesn't it ?

Why is that ?

It doesn't make a whole lot of sense to me.

How about the rest of the world ?

 

Permalink Reply by Jeffrey E. Fort on May 21, 2013 at 4:31am

300' undrained as the same limitation applies to the well next door. All one can say is that the law is perhaps overly protective of the neighbor's right not to have their property drained. The producer is free to seek a variance of the 500' requirement.

Permalink Reply by Booger on May 22, 2013 at 3:54am

Joe-O,

i remember reading somewhere (on this site) about bore to bore interference......at 1000' spacing........the guy was saying that when the next bore over starting producing, the first bore's production dropped significantly........he was complaining of a unit boundry next to his property that might be draining his minerals and there was no way to prove or dis-prove it.

Permalink Reply by Stephanie Lindquist on May 22, 2013 at 5:31am

This is all a little frightening to me with this well pad being so close to my water well. Can you be included in a unit if you are leased with a different OG company?

Permalink Reply by Paul Martinelli on May 22, 2013 at 6:25am

Yes.....a unit may contain land leased to different companies.

 

They work out the details....if the leases can't be all obtained.

Permalink Reply by Tom R on May 22, 2013 at 6:36am

Stephanie, yes, you can be included in a unit of a different driller if the one you leased with assigns your lease or goes into a joint venture with another operator. Not sure if this is happening in your case, I looked on LANDEX and don't see any activity after the assignment to Cabot on 7/10/12. I don't know if this will provide much reassurance, but several of my neighbor's water wells are much closer than 1,000 ' from well pads and none of them have had problems as a result of the drilling.

Permalink Reply by Stephanie Lindquist on May 22, 2013 at 9:19am

Thank you for looking on Landex. It does make me feel a little better about my water well, I have heard horror stories about nearby wells contaminating water supplies and it concerns me. We have had our water tested last year by Cabot, and this October by someone hired by us, water was fine. 3 weeks ago Southwestern tested it and found higher than normal amounts of methane and maganese. They are drilling and fracking wells within 2 miles of us in the past 6 months.

Permalink Reply by Stephanie Lindquist on May 22, 2013 at 9:48am

Ok so I tracked down the application for the well permit on RLSTORE.COM . Went to Landex and only found a "ratification" filed for that well . Is that the well permit? Don't want to purchase the document if it isnt.

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