Why would shell sign up small parts of a farm and not the whole acreage?

We have a small farm in Venango County and my brother owns 10 acres and he signed a lease with Shell.  My other brother owns 5 acres and was signed up but the remaining farm which the three of us hold in deed together was not signed up.  I am concerned that Shell will just take those minerals from the ajoining acreage instread of getting the mineral rights to the larger parcel. Could you explain the thinking here on Shell's part?

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Permalink Reply by Clinton44 on April 29, 2012 at 1:14pm

Maybe they only needed those two parcels to fill out a drilling unit??

What is the size of the unleased parcel??

Have any declarations of pooled units been filed including the two leased parcels??

As far as them accessing the gas from adjoining acreage to some extent that is possible, when the well plats become available get a hold of them and check the locations of the horizontals and the bottom hole location (the end of the horizontal bore) and if you think they are to close within several hundred feet call them on it and see what developes.. 

Permalink Reply by karen oliphant lappin on April 30, 2012 at 1:13am

Only the 10 acres adjoins our farm which is about 50 more acres.  I do not know what you are referring to when speaking of pooled units.  How would I know where the bottom hole locations would be.  Would Shell be forthcoming with this information?

Permalink Reply by Kathleen on April 30, 2012 at 1:26am
If you have a newer lease it might say right in it that they have to supply the unit drawing to the leased person which would be your family member. From my understanding pa files this in the court house and it's not as easy as Ohio were they put the final production unit online.
Call shell and ask them about the remaining acres and the leased acres. They may be fourth coming. They may know the other part of the farm is just not going to be drilled for the next five years. If you see an Ohio unit which is at odnr (I'll try to find a link later since that website is not user friendly IMO) you'll see how they cut through so many properties with some landowners only having a handful of their farm included. There about 1100 feet wide-about 6000 feet long with a 500ft buffer on each side. If you can see that in your mind you than can see how they may not need your whole farm.
Permalink Reply by Clinton44 on April 30, 2012 at 1:55am

Pooled units are groups of leases/properties joined together to form a drilling unit  when these documents are filed by the drilling companies they can be found in your county courthouse.

I found two units in Venango County with one permitted well on each site.

MW Ohler unit in Mineral Twp. driller is Sylvan Energy

Carter R Unit in Oakland Twp. driller is Range Resources

To get the well plats showing the drilling path of the horizontal well bores you must first find the permit number. I subscribed to the PA enotice site which is free when a permit is filed in your area an email is generated with the location etc. of the well site.

Or you can check here periodically for permits http://www.portal.state.pa.us/portal/server.pt/community/oil_and_ga... 

Then you can email Katie Schmid at kschmid@pa.gov and she can provide the well plats for any drilling unit that may be in your area.

If you want friend me on this site and message me with your contact info I can help you find information for any wells in your area

 

 

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