Has anyone heard of a drilling company adding a second pad to an existing unit? Not sure exactly what is going on as the gas company has been very secretive about their actual plans however we are in a fairly large unit (1050 acres) with just 5 laterals drilled on it. Production is decent - not record breaking but not low, either. Pad is only starting into its 3rd year. A lot of room for expansion and no issues with the location or access. The gas company - which recently bought out our original drilling company about a year ago - up and decided to put a new pad even larger than the original one about 4500 ft from the original. This company is very close to the cuff and won't let out any details, even to the landowner where the pad is being located. Most landowners in the unit aren't even aware of the new pad. My concern is what our rights are as landowners within this existing unit. Can the drilling company add a new pad and change the declared unit, effectively taking a portion of the existing unit away? Or would the landowners in the declared unit where the 2nd pad is being built automatically share in whatever is drilled from the 2nd pad, since it is sitting within the unit? I've never heard of this practice and a search has turned up nothing. Our leases (or at least those that didn't already exist from old gas drilling) stipulate pooled unitization clearly as does the signed unit declaration and notice of decimal interests; all signed and filed at the courthouse. The fact that the gas company isn't releasing any information and is downright secretive is a huge concern. Aside from possibly trying to change the existing unit, another concern is the proximity of any new drilling. The buffer that our original drilling company made sure existed would be gone and the very real concern that production would be "stolen" from the original pad once the new pad went into production, sucking the gas our from the adjacent existing pad. This would be no concern to the gas company, of course, since they would get their percentage regardless of which unit it came out from but would be a BIG issue to those in the existing unit who would lose it. I have done an extensive search and found NOTHING pertaining to a situation such as this. Any insight would be appreciated. Thanks!
Maybe, if they build another pad and drill their laterals in the opposite direction, they wont have to shut off the producing wells during fracking.? Just taking a stab at it.
I didn't see where you listed your location (State, County, Twp.).
One thing that jumps out at me is the E&P might be targeting a different formation from the one produced on the existing pad.
Bo might also have a possible explanation.
Have you searched for new permits for this new pad? The E&P would have been required to obtain permits for soil and erosion control before turning a shovel of dirt for this pad. The well permits (in PA anyway) will list the target formation.
It doesn't seem logical that the producer can arbitrarily change unit configuration at will....something else is happening here.
In any event, the producer sees something they like here, which is good news for the area OGM owners.
To my knowledge, all wells are drilled to the NNW or SSE from the pad for both Marcellus and Utica wells....something to do with the natural fissures in the rock.
Again, could it be for a different target formation? This has been explained to me before on a different thread a year or so ago, although in that instance, the wells were on the same pad.
Yes,we are hopeful for that also. Day and night difference in how they treat the landowners.