Replies to This Discussion

Permalink Reply by bo boboski on July 14, 2014 at 9:33am

WOW, this may be a 1st.  or maybe not? Where one driller has the acreage to the nw. leased,and another driller has the acreage to the se. leased,so they build one pad,share it. Pay the landowner only one time fee of ,say $25,000. for the pad site. everyone gets royalties in the unit but the pad owner? You must not have much acreage, or is your property to the west/east side ,where they wont get much of yours in the unit? Whatever the case,you will be the one who has to deal with the truck traffic,the garbage,the NOISE,the pipeline. I really believe you should be getting paid for all that as well as the pad fee.if it's not too late. Now that there are TWO drillers. Twice the noise;etc. EQT has paid people in PA. $50,000.  When they were close to the pad. Maybe get a good O&G lawyer?

Permalink Reply by Susan A Tippel on July 15, 2014 at 12:17am

Eclipse said that AEU MIGHT drill on the other side of the pad but they didn't know.  I think they do know and they would be getting double duty out of the pad.  I have 52 acres and Eclipse is including only 16.5 acres, which they lobbed off at the bottom of my property.  Good deal, huh?  I have an oil and gas lawyer, but so far he is not very aggressive.  Holding out for more money, or they can put the pad somewhere else.  I guess nothing can be simple but this really is a worst case scenario.

Permalink Reply by Susan A Tippel on July 15, 2014 at 1:21am

At one point Eclipse said that AEU might drill off the other side of the pad--even showed me in a rudimentary drawing.   Then they said that they didn't know if that was true, that they didn't know what AEU was going to do.  Are well pads always at the edge of a unit?

Permalink Reply by David Cain on July 15, 2014 at 4:37am

Susan,

Typically the well pads are on the edge of a unit.  But in some cases I have heard that the O&G's have even placed the pad on the outside edge of a unit and not included it in the unit.  They can do this because it takes a few hundred feet to make the turn from vertical to horizontal which would put them past the pad boundaries by the time they hit the Utica.  Just because Eclipse says that AEU is going to drill the other side doesn't make it so.  Are you in a lease with Eclipse or an old Oxford lease?  That will help determine what your options are.  You should ask for a pad fee ($25-35k). I also highly recommend getting a good O&G attorney.  Once you sign a lease/ammendment you will have lost all your negotiating power.  Another thread similar to yours is on the home page located here:

 

Revised Lease by Mary Price

 

Good luck to you  

Permalink Reply by Finnbear on July 16, 2014 at 2:12am

Typically, a producer will drill more then one well from the same pad IF the first is profitable. Does Eclipse have any intention of drilling more laterals from this pad in the future, should the first pan out? Would/could any of these other laterals include more of your acreage? If they don't have any future intention of including more of your acreage, does your lease contain a Pugh clause to release that acreage not included in the pooled unit? If you do have a Pugh clause, have you asked AEU if they would pick up that additional acreage? How would AEU be able to use the Eclipse pad as it is leased to Eclipse, not AEU? Does Eclipse have a JV or working agreement with AEU? As the landowner/lessor, you need to ask these questions and more.

Permalink Reply by Susan A Tippel on July 16, 2014 at 2:19am

Eclipse said the were going to drill five lateral wells in a row, one right after the other. No more of my acreage can be included.  Yes, I have a Pugh clause.  I don't know if Eclipse has a working agreement with AEU.  Good question.

Permalink Reply by Finnbear on July 17, 2014 at 2:33am

Ask AEU if they can use and will pick up the acreage that Eclipse should release due to the Pugh Clause. If they will take it, ask Eclipse to release it.

Permalink Reply by Susan A Tippel on July 16, 2014 at 2:23am

My other acreage is leased to AEU.