Replies to This Discussion

Permalink Reply by Finnbear on March 16, 2012 at 12:56pm

If you're already leased to them and they've upped the spud fee to $23k from $15k then you got an $8000 gift for your approval of the location. The lease doesn't require the gift. You are bound by the 3 year old lease, no matter how bad it looks like it sucks today, unless they held a gun to your head to get you to sign.

You should contact CHK for clarification of your inclusion in the PRODUCTION drilling unit. The plat posted is only a survey to satisfy the state of Ohio for their setback rules & regs. See 2 under NOTES on the map - the fine print is important here. That being said, Ohio law does allow a surface entry location for a horizontal well to be outside of the drilling unit. I'd bet you will be included in the drilling unit, especially with their proposed 6 wells from that pad.

I see the 3 acres that was split out, assumed you only owned 37 ac surface/minerals, good for you that you were smart enough to keep the minerals when you split the 3 acres off of the original 40.

Permalink Reply by ray schmidt on March 15, 2012 at 2:50pm

steve,ive answered your question on page 2

Permalink Reply by steve keller on March 15, 2012 at 3:54pm

thanks RAY missed that!

Permalink Reply by Utica Shale on March 16, 2012 at 1:41pm

Stev,

 I do not see any reason why the Driller would increase the size of that Production Unit or the Production Unit for the other two legs that will go North-West or the 3 legs that will go South East. They may and they may not. But with the huge slant in the vertical pipe you could have very little property actually in any of the Production Units - meaning very  little royalties for YOU.  Remember that $2,500,000 in Royalties that Marcus was boasting of ?  Unfortunately, you may be getting the pennies while your neighbors will get the $100 Dollar Bills.

 

 Can you negotiate with CHPK, in writing, to arrange the Production Units so that each portion of your entire 40 acres is included into one of the 6 possible Production Units?

 

 Also, you will need a guarantee, in writing,  that CHPK will actually develop all 6 wells within 10 years ???

 

 

Permalink Reply by Finnbear on March 16, 2012 at 1:52pm

The map posted is NOT the production unit map. See 2 under NOTES on the map.

Permalink Reply by Utica Shale on March 16, 2012 at 2:05pm

Finnbear,

 Why do you assume the Production Unit will be larger than Unit Acre?

 Did CHPK tell you that it would be?

 

 I rephrase what I stated in my earlier reply ...

 I do not expect the Production Unit to be larger than the existing ODNR Unit Acres drawing.

 

 If have reason to believe the final Production Unit will be larger then  present Unit Acre drawing then please present facts proving such.

Permalink Reply by Finnbear on March 16, 2012 at 6:38pm

I don't assume the Production Unit will be larger. I stated the fact that the map posted is NOT the production unit map as it states the same on the face of the map. I also indicated that Mr Keller should contact CHK for clarification. That is the only answer that means anything with respect to the production unit and what it may or may not include.

Permalink Reply by Utica Shale on March 16, 2012 at 6:42pm

Finnbear,

That map is the minimum Production Unit until I hear otherwise from the Driller.

Permalink Reply by Finnbear on March 16, 2012 at 11:07pm

The key word there is minimum. It fulfills the minimum the state requires. It may or may not be reality as far as the production drilling unit is configured.

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