Replies to This Discussion

Permalink Reply by Lynn Wigglesworth on June 23, 2014 at 5:01am

Another option is that the O & G Co could put you in a unit and hold your lease forever with no production. That seems to be a common option in Tioga Co.

Permalink Reply by Ann Ticopa on June 23, 2014 at 6:57am

There are several suspect SWEPI permits in the approval process.   I could be proven wrong, but I doubt they are going to drill six wells (each) in those locations anytime soon.  According to efacts, they are E&S permits ... which sites had previous E&S permits approved 4-5 years ago.

So, are you growing vegetables for market this year?  Given the drought in the West, it should be a decent year for local growers.

Permalink Reply by Lynn Wigglesworth on June 24, 2014 at 3:19am

I've been leased for almost 3 years now, and never heard a word from the O&G Co. after they paid the bonus. There's a unit around my property that part of my land should be included in, but they never bothered assigning me to it. Bad sign, I think; they seem to have no interest in developing that unit or even holding my lease. Still, the bonus money was an incredible windfall for me (I'm still living off of it).

I've pretty much 'retired' from farming. I never found a way to tap into anything but the local markets with vegetables, and selling was too much work. I still have beef cattle, but I just send them to the auction now (beef prices are so high right now I make more that way than selling beef by the cut, and it's so much easier).

Permalink Reply by Ann Ticopa on June 24, 2014 at 4:03pm

My guess is that they're keeping their options open until they have to decide. 

Growing vegetables is a lot of work and a lot of uncertainty,  The farm in Elmira that I've mentioned had all their strawberry plants die last winter.  And the place closest to me that sold one day a week at the Mansfield Agway had it shut down during the season last year.  

Permalink Reply by Brian Day on June 23, 2014 at 12:52pm

What are E and S permits?  If You are talking about the Cruttendin pad in Keeneyville, some of those wells are going to happen fairly soon indeed.  They are Utica wells.

Permalink Reply by Ann Ticopa on June 23, 2014 at 5:09pm

Erosion & Sediment; basically, the well pad.   SWEPI has applied for three drilling permits for  CRUTTENDEN #846.  So, no, that's not one of  the sites I was referring to. 

Permalink Reply by john walsh on June 23, 2014 at 11:24pm

Some of the E & S permits are so Swepi can remove the pads from what I was told.

Permalink Reply by Brian Day on June 24, 2014 at 12:46pm

So here is my question:  one of these pads to be reclaimed, has held some of my land under HBP or shut-in for quite some time.  When my lease expires, I should be free right?  Or perhaps Shell cannot use that ploy to even hold me after the year that they have currently paid for is up.

Permalink Reply by Ann Ticopa on June 24, 2014 at 3:08pm

OK, hadn't thought of that possibility.

Permalink Reply by Jack Young on June 24, 2014 at 3:28pm

Under the terms of most leases you can leave a well shut in longer than you can legally allow a drill site to go unreclaimed. So a location can be substantially restored without the well holding the acreage being plugged. We've had locations where we only got half a frac finished initially, and had to fill in our pit despite the need to use it again when we came back to finish the frac two years later.

I'm not sure if this is what Brian is suggesting - HBP and shut-in wells certainly hold a lease after the primary term has passed unless there's language to the contrary in the agreement. Any site restoration done in the mean time wouldn't alter that.