Famous Buell well (Buell 8H) about to be shut down!!! Chesapeake doesn't own horizontal drilling rights!

Looks like Chesapeake's "best shale well ever" is actually owned by Kenneth Buell.

You can find all the relevant court documents (very hard to get your hands on - rural public records...) and analysis here:

And the Buell well will soon look like this.

p.s. the well is in Harrison County, Ohio.

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0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on July 11, 2012 at 4:22am

"This is about protecting landowners rights. That's the bottom line."

What about mineral owner's rights?  They own an asset that cost them something at some point, they have an expectation that they can monetize that investment.  

Permalink Reply by Buell Well on July 11, 2012 at 5:04am

You mean the North American Coal Royalty Company? Not your typical mineral owner, for sure, but what about them? (of course, under Wiseman v. Potts Mr. Buell owns his mineral rights, not the royalty company, but let's put that aside for the sake of argument)

The North American Coal Royalty Company/Chesapeake can drill vertical wells on Buell's property all day. That is THEIR right. Nobody is stopping them. In deed, Judge Nunner affirmed that they have that right.

Permalink Reply by Buell Well on July 11, 2012 at 5:12am

Moreover, mineral owners can be abused by this "rollover, CHK needs another dollar more than the little guy" attitude just as much as landowners. You don't think CHK may try to interpret certain provision of a lease in a way that negates mineral owner rights as well? There is nothing magical about CHK's modus operandi that limits their arrogance to dealings with surface owners...

Remember how the Jewett/Buell cases started - it's all spelled out in the court filings I've linked to. CHK acknowledged that did not have sufficient horizontal drilling rights from those parcels by coming to Jewett/Buell and offering a low-ball surface use agreement with no protections for their land. When they sent CHK back counter proposals, CHK cut off communication and simply invaded their land, bulldozed, poured acres of concrete, threatened them with bankruptcy if they took recourse within their legal rights, and started drilling.

They could do the same thing to a mineral owners. They offer you $500/acre, you say no, and they drill under your land anyway. So much for landowner mineral owner rights, Marcus..

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on July 11, 2012 at 5:27am

They could do the same thing to a mineral owners. They offer you $500/acre, you say no, and they drill under your land anyway. So much for landowner mineral owner rights, Marcus..

No they couldn't.  Unless you're talking about forced pooling there's no way to drill a well without having a lease in place.  ONDR will not issue a permit unless there is proof of a lease or a forced pooling agreement.

Permalink Reply by Buell Well on July 11, 2012 at 5:32am

...and Judge Nunner will not allow them to drill from land where they don't have the the right to conduct their operations. THANK GOD for Judge Nunner and ODNR. And if they ignore the buffer zone from unleased parcels, Marcus, WHO do you go to for injunctive relief and damages, both economic and punative? The Courts and judges who uphold rights. Why are you tearing down peoples' rights and the institutions and public officials who defend them?? It's crazy and hypocritical after you make a plea for mineral owners rights.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on July 11, 2012 at 5:25am

NACR has a right to make money off of an asset that they own.  It doesn't matter if they are an individual or a corporation, they have rights.  As far as drilling vertical wells that is irrelevant to case.  There's no Utica production through vertical wells.  The judge essentially said "you can't sell your house, but I'll allow you to sell the upstairs bathroom if you want to".  It's a backdoor way of shutting down a mineral owner's interest.  

Permalink Reply by Buell Well on July 11, 2012 at 5:34am

North American Coal Royalty Company's right is to drill vertical wells or horizontal wells with laterals extending to the property line. You obviously have not read the January opinion, at least not carefully.

Permalink Reply by Buell Well on July 11, 2012 at 5:40am

Hogwash...Buell owns his mineral rights and even if he didn't North American Coal Royalty Company will get a hefty $2,000/acre an acre (or whatever they signed for) in 4 years from the Jewett property if CHK does not set things right. Assuming for the sake of argument that they do own the mineral rights, North American Coal Royalty Company's beef is with CHK, not the Jewett Sportsmen Club or Kenneth Buell.

It's very telling you want people to pick between mineral owners and landowners, instead of a billion dollar company doing the right thing, and the LEGAL thing. Hint: it is neither right, nor legal to rip-up a counteroffer, shut down negotiations you initiated with a landowner, trespass on their property, bulldoze, pour concrete, threaten economic ruin when they protest. That's authoritarian, and that's corporations doing what the Soviet Union or North Korea used to do to its citizens. Trampling on peoples' rights is bad, regardless of whether it's Barack Obama or Aubrey McClendon driving the steam-roller.

Permalink Reply by DDS on July 11, 2012 at 5:58am

I will be the first to admitt that I am by no means any type of expert but I can see additional ramifications if the mineral rights that were thought to be owned by North American Coal Royalty Company (Company) were transferred by a judges ruling to Mr. Buell. 1) Why should the mineral rights go to Mr. Buell and not the original owner of the mineral rights before the Company purchased them.  2) If Mr Buell knowing purchased the land without the mineral rights then the previous owner should be able to renegotiate the selling price based on this new information, I am sure the asking price would have been different provided the mineral rights were included.  Again I am by no means any expert I am just throwing out scenarios to think about.

Permalink Reply by Buell Well on July 11, 2012 at 6:08am

You would have to ask the members of the Ohio legislature who passed the Dormant Minerals Act. And the judge in Morgan County who interpreted it in Wiseman v. Potts.

Just want to remind you that this is a separate issue from Chesapeake lacking the necessary drilling rights to its "best well ever". Just want to caution people not to confuse the two issues, as it can get complicated. No need to make it more complicated by confusing issues.

Good question though! very important issue...

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on July 11, 2012 at 7:51am

"The North American Coal Royalty Company/Chesapeake can drill vertical wells on Buell's property all day."

"North American Coal Royalty Company's right is to drill vertical wells or horizontal wells with laterals extending to the property line."

You're the expert, which one of your statements is true?

Permalink Reply by Buell Well on July 11, 2012 at 8:37am

LOL - they are both true!!! Is the right to drill a horizontal to the property line somehow inconsistent with the right to drill a vertical??

At least we know who is NOT the expert.

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