Probability of drilling on my land - I have a pipeline

Have some property in Lycoming county, about 1,000 acres.  We have shallow gas wells drilled between 1990 and 1991.  We have a transmission line on the property for that gas.  If there is gas (doing seismic testing right now), will that transmission line improve my chances that they will drill sooner than later?

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Permalink Reply by Jack Straw on August 30, 2012 at 7:30am

In your favor, 1000 acres is a large land position.

I assume that you are HBP (held by production) due to existing shallow production.

Who are you leased with? Some companies are currently more active than others.

 

To answer your questions - what type of "transmission line" are you referring to?

 

If you are referring to a gathering line for shallow gas wells, it is a low pressure pipeline.

Marcellus/Utica gas requires a high pressure pipeline.

If there is an existing ROW for a gathering line for the shallow gas, it is likely possible to extend the width of the ROW to accommodate a second (high pressure) line.

 

If you are referring to an interstate or intrastate pipeline that already transmits gas that has been compressed to high pressure, then Marcellus/Utica gas could potentially utilize that transmission line.

 

A complete answer to your question requires more detailed knowledge of the nature of the existing pipeline.

 

All IMHO,

                 JS

 

Permalink Reply by CB on August 30, 2012 at 7:35am

The transmission line is not a high pressure line, and is not inter/intrastate.  I believe it is just a gathering line for the shallow gas.  Interesting points.  Either way, I would think that existing line would be somewhat attractive.

I have heard that the drilling companies are skipping some areas (for now) because they don't have a way to move the gas, and are leaning toward properties that have a transmission line (few and far between) or ones where putting a line in is relatively easy and can serve the larger area.

Permalink Reply by Jack Straw on August 30, 2012 at 7:47am

RE : "I would think that existing line would be somewhat attractive."

The existance of a (low pressure) gathering line might have little or no influence.

Choice of site for a Marcellus/Utica well pad location would not likely take into account the presence or absence of an existing low pressure gathering line. 

 

All IMHO,

                   JS

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