Replies to This Discussion

Permalink Reply by EJ Mal on September 25, 2009 at 4:08pm

I think the gas company owns the well. They've drilled the vertical well on your neighbors property and probably continued the horizontal leg on through the adjoining leased properties. Good for you! You'll start seeing royalties once the gas starts flowing. BTW, where's your property located?

Permalink Reply by Jasmine on September 26, 2009 at 1:55am

Dimock, PA. My land borders Ratzel. How long after getting the unit papers do I wait until the royalty payment starts.

I was told I had a horizontal well on my land and Ratzel had the top hole to it. I am confused. Do I really have a well or is the well actually on Ratzel property? I am out of state and not able to talk with anyone local. Thanks for any info.

Permalink Reply by hunter777 on September 26, 2009 at 2:30am

If you've signed the unitization, the next step is for Cabot to file all the paperwork with the state to get agreement on the unit size and shape, and then to file it in the Susquehanna County courthouse. Cabot issues checks on the 25th of the month so it may be as soon as Saturday or Monday, or next month. The first check would catch up for the months since the well started producing.

The well is drilled on the Ratzel property, but after reaching the depth of the Marcellus they turn the drill bit to drill horizontally underneath your property, and others in the unit. The physical wellhead and piping is the responsibility of Cabot. At the Ratzel wellsite there are three wells- a vertical and two horizontals. You are included in two of the three well's units. If you look closely at the unit map, it will show the top hole location and the location of yours and your neighbors' property.

Hope this helps.

Permalink Reply by Jasmine on September 26, 2009 at 3:49am

Thanks you very much. It does help!

Permalink Reply by Rita McConnell on September 26, 2009 at 3:48am

You both have an interest in the well. As does anyone else included in the unit. In most cases with horizontal wells, when units are developed, all members of the unit receive royalties for all wells within that space, based on the amount of their acreage impacted by the well or wells. So, if you leased 100 acres, and 50 are directly impacted, you receive royalties on that 50 acres for all wells in the unit. It sounds like your getting less at first blush, but what your actually getting is probably going to be more, as you'll probably have royalties on more than one well. Also good if one well doesn't produce, and another in the unit does. Its like having multiple chances. Your neighbor probably gets another payment for having the well equipment on their property.