What is the value of a driveway and pipeline together? Can the driller change the unit size?

1     My neighbor on Route 45 in Leetonia is being asked to have a driveway and a pipeline on his property .  He would like to know what to ask for as they are offering very little.

2     The well will be on the property behind him, and is said to be servicing 1280 acres. Our lease is for 640.  The neighbor is not happy that they want to go 1280 and not 640. How can this be?

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Permalink Reply by Dan Smith on March 4, 2013 at 3:21pm

I found out that we are all in the same group.  I do not see anything about pipe lines or driveways in the lease.  Can one property have two well pads that service 640 acres each?

Permalink Reply by Dan Smith on March 4, 2013 at 5:40pm

It is an ALOV lease with CHS. energy.

Permalink Reply by Keith A Williams on March 5, 2013 at 3:46am

" 

Can one property have two well pads that service 640 acres each?"

You do not need 2 PADs. One pad can have the laterals that run NW in one Unit and the wells that run SE in a second. IF the leases of the landowners in each unit allow, then the units can be any size. I believe that your ALOV lease allows up to 640 acres with no restrictions. Thus they can bring a rig in, drill one well North West and one well South East and hold 1280 acres. Easy!

Your lease will contain language about allowing for surface disturbances. If you are leased they can put the road in so that they can put in a well. Same with pipelines.

Keith

Permalink Reply by Dan Smith on March 5, 2013 at 4:39am

Thank you Keith, that makes sense.  Thank you also Fang. 

I will pass this along to him.  He does not use a computer.

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