When a map is drawn in the future of existing and proposed well drilling units

Assuming we all survive the next 10 to 20 years of this possible gold rush in Eastern Ohio. When a map is drawn in the future of existing and proposed well drilling units , will we see a haphazard picture that looks like a Picasso with a lot of wasted acreage due to non uniform drilling units? Or will it resemble a piece of grid paper with little to no wasted areas? Are there any controls, or thought toward this planning? As a landowner HBP it would affect how I respond to a large company approaching me to adjust the 80 acre drilling unit limit in the old non functional lease they bought. They will probably threaten those of us that have such clauses with exclusion from modern sized drilling units ("we will drill around you"). Can they draw up and produce a drilling unit that looks like a square or rectangle with a bite out of it, or even something resembling the "Death Star"?

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Permalink Reply by Robin Hood on September 13, 2012 at 1:44am

The oil and gas is there. If your willing to hold out for possibly years, they will eventually negotiate, right now they are focused on holding as much land as possible without paying any more bonus money or increasing royalties ect. It's because they have more they they can manage. If a landowner pushes back, they just put you in the cooler and let you think they'll go around you. If the oil company does that to 100 landowners and 50 give in, that's 50 they don't pay a cent more than what the current lease says. In the meanwhile they are drilling in areas where there is no conflict. Maybe in six months they approach the 50 holdoutsand offer a small something in return and 25 accept that offer, because the threat of we'll drill around is a suggestion that is floating everywhere and royalty checks are being cashed and you feel left out of it. Don't cave in, call their bluff. By March next year they have to reveal production. Wait at least till then. We all want more money and we want if now. Just a little patience and it could be a much larger pot of gold that would stay in the local economy.

As they map out the Utica with producing wells, They will certainly want to capture every acre in a good producing area. Right now the rush is to hold by production and figure out where the sweet spots are.   It's all good in certain counties or townships.

With 80 acres and drilling unit limit of 80 acres, they be back. 

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