Comment

Comment by Carol on April 14, 2010 at 1:13am

From what I understand, the gas company already knows where they want to place the wells. They don't just randomly have people sign leases. So, if you request a no drill clause, you are not going to chase them away. They know where they want the wells and they will not agree to a no disruption clause if it will affect where the well is placed - they will negotiate with those landowners. They are targeting certain areas obviously. The landowners of the targeted well sites have been approached, at least in this area, before others were asked to sign leases. Most of the landowners were able to get "no surface disruption clauses" in their leases. These wells are all placed in fields that are away from homes and the owners have received substantial additional payment for allowing the wells on their property. 10 horizontal marcellus wells have been completed in approximately a three or four mile radius (maybe a smaller area, not sure) and there are at least 10 additional vertical wells in this same area. They are now drilling three other horizontal wells and have permits for five more. I guess we are very lucky that Williams and Rex have been good to work with. And no, I don't work for any of the gas companies, but I would like to. We are also in an area that was heavily mined for coal so we are aware of the risks and benefits. Fortunately, the benefits seem to be far outweighing the negative aspects at this time.
I just think it comes down to being responsible landowners. Anyone who is approached to sign a lease really should consult with an attorney. The cost of even a very good attorney is minimal compared to the protection it can provide. Once that lease is signed, it's too late to change your mind. However, if you do your research, both sides - you and the gas companies - can benefit.

Comment by CJK on April 13, 2010 at 2:55pm

The opinion of noise and disruption depends upon what is acceptable to you. Derry Township is in what county? How near are the 10 wells? It is great that you were able to get a no-drill clause in your lease, but many people were not that fortunate. We have recently been discussing how "you can restrict them them right off your property" , just how do you think they would be able to drill if everyone negotiated "no surface disruption clauses" it would not be possible, obviously.

Comment by Carol on April 13, 2010 at 7:17am

The company in Westmoreland county has been very accomodating - there are no wells located anywhere that inconvenience the landowners (at least not in Derry Township.) They have located all wells in areas away from the houses and have been very cooperative with those landowners who want "no surface disruption" clauses. I have such a clause in my lease. Like Hunter777 said, just request a clause and you can still be in a unit with no well on your land.
Also, I think everyone is exaggerating the noise and disruption caused by the well sites - they are not that loud. We have more than 10 recently drilled horizontal wells near us and I have not heard of even one complaint from residents.

Comment by CJK on April 13, 2010 at 7:07am

Hunter: I respectfully disagree based upon some of the location of well sites I have visited. The disturbance would make it impossible for me live on some of the properties. One that comes to mind is a well pad located behind a barn that has acesss through the same driveway as the house and barn does. Everytime that well is refracked, used for frac farm or storage of trucks for the gas companies they have to go through the owners driveway past their house and behind their barn to access "their" pad. I guess you are a lot more tolerant than I would be. WOuld you be willing to have that all go on in your driveway and 200 feet from your house? Hence the importance of negotiating either the lease or the surface use agreement. Most companies will not change the location of their pad, that has been my experience in this area. What drilling have you experienced and how close were you? Please elaborate. What company was very accomodating and when? That has not been the experiences I have heard about.

Comment by hunter777 on April 13, 2010 at 6:23am

I guess it comes down to: If you don't want any disturbance - don't lease! It really is a personal preference. If you want to keep a certain patch of trees, then you may not want to lease - or better yet, write in a no-drill clause so that you could still be part of a neighbor's unit.
I can tell you from personal experience that the drilling is just not that big of a deal, just a minor inconvenience. Actually the companies can be very accomodating concerning location if you just ask.

Comment by CJK on April 13, 2010 at 6:12am

Hunter- there may be a financial interest for landowner but I think about the disturbance to the land and those in close proximity as well. It is all what one considers valuable. When they hand you the surface use agreement they do not tell you that it is a never ending ok to use whenever they want to agreement. Somehow that gets lost in the explanantion. Just because you want to limit their access should not be cause for them to pack up and go away. What about a little consideration given to the landowner.

Comment by daniel cohen on April 13, 2010 at 5:55am

Dear All,
Should we consider distilling the great info gathered here to a new post, called LEASES & ADDENDUMS, and include on it the remarks about how to protect oneself, model lease and list of addendums possible?
Dan

Comment by hunter777 on April 13, 2010 at 5:33am

Is it not to everyone's advantage that there are six wells on one pad as opposed to six separate pads at 1000' intervals?

Is it not in the landowners interest that they come back to re-stimulate the well(s) for increased production (i.e.-cash in their pockets)?

If you want to limit their surface use to a non-drilling application you should write a no-drill clause into the lease, but most people signing a lease want to be drilled on. I'm all for protecting our land and water, but which property do you think a drilling company would choose? You can restrict them right off your property.

Comment by CJK on April 13, 2010 at 2:48am

rfs wanted to address your comment yesterday:
"Second, you have to remember that each well site will have lots of activity for a SHORT period of time, then it will all go away and be replanted. Life returns to normal and you can't even notice the well sites."
I realize that this has been the practice in the past but the companies are now using existing pads to set up operations for another .First they are drilling only one well on a six pad well site. With the full intention of coming back to drill. In addition, they will need to come back on the land at some point to refrac the wells to increase the production. Dr Engelder states this can happen as much as four times in the life of the well. The gas companies are also using existing pads to place their frac farm on (mixing and dispersing of fracking fluid) and then transporting it via pipelines from the one pad to the pad they are actually fracking on. So with this in mind they can come back as often as they want to conduct operations. This is why it is so important to limit their use when asked to sign a surface agreement. Most people are signing gas company surface use agreements without any negotiation. You need to limit their use and ask for other protections. They may not be there for a short time and you need to protect yourself in case it happens to you.

Comment by John Reed on April 12, 2010 at 12:11pm

Good point RFS and excellent information Hunter.

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