SIESMIC STUDY- What are the pro's and con's to allowing them to test your land?

Does any one know what the risk is to allow a gas company to do a study on your ground of which they do NOT have a lease on?  Like many people in my area, we received a notice that East wants to do siesmic testing on our unleased land.... what's the down side of letting them?  Tioga County

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Permalink Reply by David Wheelis on February 4, 2010 at 2:09pm
Brian, which operator are you speaking with?
Permalink Reply by Dave Doyle on February 17, 2010 at 10:22pm
Hi! I'm a Petroleum Engineer who has spent 30 years drilling, completing and producing oil and gas. There are all sorts of reasons for conducting seismic surveys.
1. As others have said, some are speculative surveys. Geophyisical companies broker data to anybody that might be interested in it.
2. It may be very likely that gas producers are interested in locating "sweet spots" to drill first. They would be lower risk and be better cash- flow producers for new, small operators. That isn't to say that the other land won't be leased or drilled. As experience grows, the riskier areas become economic. The Austin Chalk trend of the 1980s in Texas is a classic example where there was oil to be found, but not in economic quantities. Many wells were drilled that shouldn't have been. Operators should have more careful in placing their wells.
3. There may be geologic or engineering reasons for seismic surveys. They may help develop computer models that predict the behavior of the natural gas underground. The data may be used to justify well spacing requests, help design the direction and length of horizontal wells, or help improve completions.
4. In my opinion, there isn't much reason NOT to grant permission for a seismic survey. You'll be compensated for access. On the other hand, there is plenty of activity and if you don't want people on your land, they will be glad to go someplace else.
Permalink Reply by bill h on February 18, 2010 at 12:58am
Dave, after seismic was done in the SE Bradford Co. area the permitting rate accelerated. What specific details in the sesimic would lead to the belief that more gas is available? Also, do you have any information on the suposedly very low decline rate of wells in this area. Is it a fundemental difference in the shale, or is it just that the take-away capacity is limiting flow (wells being choked back). Thanks.
Permalink Reply by terry hazlett on February 18, 2010 at 1:56am
Dave, It is my opinion why let them shoot seismic on your land if your not leased? Sure you still might be included in a unit ,but maybe at a reduced price if they don't like your property for a well, and maybe not at all if what they find is undesirable maybe a large fracture running thru your area, then your property is done as far as leasing goes, no lease no seismic, and no offense intended, but your in the buss, sure you want seismic on unleased lland!
Permalink Reply by Carol A on February 18, 2010 at 3:48am
Dave,

Compensated for access? The information and release form that was sent to me, does not have any indication that there is compensation for access. I am not leased with anyone.. but they want to do seismic study on our land for East. No mention anywhere of compensating us.. just fill out the form and send back! Is it customary to get compensation? and what amount is "typcial". We are NOT planning on signing. East tends to be leasing at the very, very LOW end for bonus and offering the LOW end for %. Thanks for the response! Appreciate all information and opinions!
Permalink Reply by SK Miller on February 19, 2010 at 7:00am
Explosives are set off; water supplies could be lost; water quality could change after the explosions; holes need filled back in after seismic; get paid for the seismic, a 3 d seismic should be a six month contract $50. per acre then renewal if you want it renewed then another bonus? Ask for results of the seismic, know where the pockets of gas are located on your property; ask for pre and post water tests and also ask for a drawdown test; make them liable for any damage to your water supplies, foundations, etc. specify you want a say in where they will set the explosives off; what about property damage to trees, roads, etc., who will put everything back like it was or replant trees....is this enough to think about? Don't sign anything unless you understand it or have had it reviewed by a good attorney who doesn't work for gas companies...environmental attorneys seem to be the best in this area.

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