Multiple wells AND multiple units Per pad!

I've noticed some O&G co.s are now drilling multiple wells on their pads in Ohio, but also dividing each lateral into their own 160/or so, acre drilling units.This defeats the idea of drilling one well and holding 640 acres or 1280 acres by production. It also keeps every mineral owner within the 1280 acres from having to share the royalties with everyone else in the big units. If your property is within the first drilling unit, you will get royalties from that lateral only,but not what comes from all the others. I'm having a problem putting my finger on what the reason is for this is. In Carroll co. CHPK has been all about getting 1280 acre units, even if only one well per pad.  Now in Guernsey co. the 4/5 well pads are dividing up each lateral into individual units. Go figure.

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Permalink Reply by Mike Fulper on March 4, 2013 at 4:46pm

The only people going to get any royalties

are the ones WITHIN the WIDTH AND LENGTH of the Fractured line....

NOT.. from the well hole...

.they go out 1500 feet till  the Fracturing starts..!!

.with side by side lines...some could get Royalties from 2 or more fractured lines..

It is possible a Well could be drilled on a property

and if that property does not extend INTO the fractured line... NO ROYALTIES....:(

It is a lie when they telll you that everyone within a 640 block will get a royalty off a well within that 640 block...

They tell people that to get em to sign a lease....

 

Permalink Reply by Mike Fulper on March 4, 2013 at 5:13pm

They only pay from the length and width of the fractured line...

As that one guy found out... he only got paid for 1/3 of an Acre..

Ask EQT.....they are Straightup.....

Sorry...its a pipedream if you think everyone with in a 640 block with a well gets paid...

Permalink Reply by Oliver Perry on March 4, 2013 at 5:21pm

You are incorrect Mike, royalties are paid on the acreage within the production unit. If that one guy only got paid on 1/3 of an acre, thats all he had in the unit

Permalink Reply by Mike Fulper on March 4, 2013 at 5:26pm

HIs 1/3 of an acre was all that was within the length and width of the fractured line....

Im not gonna argue over what i know....

since he only got paid for 1/3 of an acre... what did you miss ?

Read the statement about the 1/3...

he had 250 i thinnk it said IN THE UNIT...!

I have a blueprint of a well up by dover ohio where there are SMALL LOTS in town...

and some people only get paid ON FOOTAGE...:)

oh well...

Down the road it will all come out...

Permalink Reply by Kathleen on March 4, 2013 at 12:53pm
This smaller units the ODNR has been showing has been driving me crazy. I knew these units have to be bigger.
Now I proved it. I went to the courthouse and pulled off a deed the declaration of pulled unit for the andrelluis well in columbiana county.
The ODNR only shows 156 acres but the courthouse papers show its a 415+ acre unit.
I believe this holds true for all the smaller (not test wells) units CHK is showing on the ODNR.
Permalink Reply by Kathleen on March 4, 2013 at 3:20pm
Here's my theory. The driller only needs to provide the ODNR with the drawing of where the draining will happen. There is a better word to use and I can't think of it :0).
The ODNR doesn't need to know the whole unit and that's why we are only seeing the smaller numbers. If they permit another well within this larger unit than we would see more of it.
I'm going to pull a different well tomorrow to see if this theory holds.
The only problem is none of this stuff is in books yet so they are charging me 2 bucks a page. That adds up :0)
Permalink Reply by Kathleen on March 4, 2013 at 3:23pm
Theory again.. ODNR only needs to have on record showing where the activity is going on under the ground, not the whole unit.
This is why its so hard to prove you can be in a unit without the drilling going on under your land.
ODNR only shows that part.
Permalink Reply by TM on March 4, 2013 at 3:26pm

So are the drilling unit boundaries shown on the maps wrong too or not?

Permalink Reply by Kathleen on March 4, 2013 at 3:45pm
The unit plat drawing prepared on September 27 shows a drawing using all 416 acres. It does not show the well hole or leg.
I will post this.
Permalink Reply by Kathleen on March 4, 2013 at 6:14pm
Follow this link to the Andrulis well.
http://gomarcellusshale.com/group/columbiana-county/forum/topics/an...
On the top Utica shale post a link to the ODNR unit drawing and on page 7 I posted a photo of the full unit drawing placed on the deeds.
Permalink Reply by bo boboski on March 6, 2013 at 5:38am

Explain; if you can,or theorize; a driller who has leased 2000 contiguous acres around the wellbore, and still has a 160 acre .M/L unit for each lateral?

Permalink Reply by bo boboski on March 6, 2013 at 6:19am

Still researching, but found one case in point; the 4 hess wells in Guernsey co. ohio are side by side 150 acre units but the entry points are 1100 ft apart. They are either gonna keep adding unto the pad ,or have a pad that is 4000 ft. long? I'll be looking @ others n get back if I find anymore info.

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