Forced Pooling? Do we have it or not?

I attended a seminar the other day by Terry Englander, most probably THE LEADING AUTHORITY on the Marcellus Shale in the world. He indicated two very interesting facts that I thought completely different about.

First, he said that there is force pooling in every state except PA and KS. He also stated that force pooling is only in effect above the Onondaga Horizon. The Utica is below the Onondaga, so force pooling is able to be done everywhere. (Oil and Gas Conservation Law Act 359 of 1961)

Secondly, he indicated that a frac can extend out as much as 2000ft and because of the Law of Capture, gas can be recovered from under an unleased property with no compensation to the unleased property owner.

 

Anyone with competant knowledge care to comment?

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Permalink Reply by Finnbear on November 17, 2011 at 1:14pm

Are those 4 old leases on parcels larger than are needed for a well?

 

Permalink Reply by Jack Straw on November 17, 2011 at 1:20pm

Yes for three, no for one.

Permalink Reply by Finnbear on November 17, 2011 at 1:40pm

What mechanism is provided in that one for combining it with other acreage to make a drilling unit?

Permalink Reply by Jack Straw on November 17, 2011 at 8:47am

To avoid confusion, my posts are in reference to the way things are in the state of Pennsylvania.

Each state has its own set of laws, rules and regulations relating to O&G leases.

In less progressive states, the rules can be less landowner friendly.

In less progressive states, there could be fewer protections.

JS

Permalink Reply by fred riley on November 18, 2011 at 5:25am

Is it reasonable to surmise that without any information from any parities involved, that we landowners haven't a virtual clue as to where their drilling lines go out and under?

How long before PA knuckles under to the 'forced pooling' laws?

What if you are never approached for a lease, and good sense would tell you that a deep well nearby almost HAS to go under your property? How could you and your representation (lawyer) ever find out? 

 

Permalink Reply by Jack Straw on November 18, 2011 at 7:40am

Hi fred,

In PA, drilling map information is in the gas well drilling plan submitted to the PA State Department of Enviornmental Protection by the company drilling the well(s).

http://www.dep.state.pa.us/dep/deputate/minres/oilgas/new_forms/mar...

 

An O&G company would not knowlingly defraud an individual by drilling a well under their property without prior agreement. The O&G company would have way too much to lose.

It is possible that an O&G company might (through gross error) screw up. I would have to believe that this would be a very rare occurrance.

However, there has been a discussion on gomarcellus concerning an individual who owned the O&G rights; however, without his knowledge the Surface Rights owner leased the O&G rights (rights that the Surface Rights owner was not entitled to lease). The O & G company obviously did not do their due dilligence in researching the courthouse deeds. A well was drilled, and that individual is working on asserting his rights. You may wish to follow that ongoing discussion. Below is the link to that discussion:

http://gomarcellusshale.com/forum/topics/our-land-is-being-drilled-...

 

I hope that this is of help.

I hope that this allays your fears.

Knowledge is Power.

 

JS

 

 

Permalink Reply by Jack Straw on November 18, 2011 at 7:51am

fred,

       An additional thought; if you know who the company is who have drilled the well, contact their Land & Lease Department. Typically these people are friendly and willing to help with questions posed in a polite fashion. Explain that you have concens and ask them for a copy of the drilling map (with the location of the well bores projected onto a surface map. This might be the simplest and quickest way to obain information and assurances.

 

JS

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