Updated November 8, 2011
This webpage is a little over a year old. During this time frame oil and gas leasing
offers have increased significantly.
As of November 8, 2011 the signing bonus has increased to $5350-$5800 with the royalty percentage at 20 % gross. Leases are being signed by several companies. The best lease terms are being realized by the landowner groups that offer their acreage through a competitive bidding process. I personally believe the money offers will continue to increase with time. The highest offers occur when landowners pool their land into contiguous units.
Presumably, all are aware that Chesapeake recently leveraged 25% of their leaseholds in
Eastern Ohio for $15,000 per acre by forming a JV with an undisclosed oil major.
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Hydraulic fracturing has been around since 1954 and there have been over 200,000 wells completed using this method in Ohio alone. By the logic of the alarmists who use lies and fabrications to fuel their rants, there should be no more clean drinking water in Eastern Ohio where most of the wells have been drilled over the years.
These people have an agenda and it's to shut down Drilling in America. And it doesn't matter if facts get in the way or not. They'll make egregious claims and "documentaries" tailored to their own spin.
I appreciate your comments Nate and Dan, and I sympathize with them. I don't count myself among the "haters" and the "chicken littles". I understand and respect that fracing has been around for a long time. I don't think I'm being lured into anything. I bring this up not because I think that frac water is super-toxic. It is more of a practical concern for handling millions of gallons of used frac water in a responsible way, plus a concern for the PR of the industry. You start hauling and handling millions of gallons of anything and you have to be more responsible because it can affect the community, from road damage to reservoir depletion to treatment plant overload, etc. My understanding is that the wells of the past did not use anywhere near this much water to frac with, so we are dealing with new issues here. My interest is just as much for drilling in the area to commence smoothly as it is to protect the environment. The last thing we need is for there to be some kind of accident with frac fluid, because the media would jump all over that, and put a real damper on things. So when I see how they are setting things up over there at the Buell Well, I think, gee that would be a bad headline in the papers to see that a frac line burst and a million gallons washed right through a state campground. I just don't want anyone to get to sloppy or careless in this process, because there are those who are looking for a reason to shut down this gas exploration. We have to think in their shoes, and not give them anything to complain about, especially as we get started with the first of these latest-technology wells in this county.
As I said above, I'm not concerned with the use of the frac water, but just with it's handling, as is the ODNR, as is Chesapeake.
Dan,
You are correct that the frac process is safe, unless there is an accident and spill of the slickwater. It is not exactly clear as to what procedure they will follow, and what they plan to transport in the pipes or the truck tanks. Those Dragon tanks pictured above have a capacity of 500 barrels and it will require ~186,000 bbl of water to complete the average well fracture.
I spoke with the State inspector, and the plan for the Buell Well is to supply the fresh water from the tankers in a one-way system through the pipe from the tanker site to the well site a half a mile away. On the well site the additives will be added to the water before injection into the well. After they are finished with the pressure fracing, they will let the well sit for several days. (In Marcellus wells, they have found that they only have to haul out about 10% of the water put in, because the well just "absorbs" the rest. This is a Utica well, so it will probably be something similar, but no one knows for sure.) Then they will let the natural gas pressure push the water back out of the well. As is comes out they will load it directly into tankers on the well site, which will truck it to disposal wells.
That's the plan. It seems very reasonable to me.
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