Just curious...

     I am in Liberty township and a few months ago got an offer to buy my royalties for 1500 to 1800 per acre, but they would do a more in-depth look if I was serious which "mite change the numbers" slightly....even tho I am not drilled or receiving any royalties ..talked to a landsman rite b4 I contacted them and he advised caution as there will be "significant" activity in my area in the "near future"....how about it, anybody else get an offer or hear anything or see any activity here in Tioga Co. ?

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Anyone know if a drilling permit (or possibly just an E&S permit for the pad) is adequate to hbp leases for land included in the declaration?

Yes, it is part of "drilling operations", affirmed by the courts. If there is a Declaration of P&U filed than it is already a done deal HBP'ed. The Q was a little hard to follow.

Thank you.  Sometimes there will be permit applications for areas where it seems unlikely SWEPI would be drilling anytime soon.  (And it usually doesn't take long to get the necessary permits.)  So, why the premature permits?

There are areas where drilling permits were issued, never used and Swepi did not declare a unit. I do not know why - I guess plans change?

I'd like to know why swepi decides to drill a new Utica well in an area when in fact there may be several Marcellus wells that are already drilled down to perhaps 8000 feet and are shut in within the same general area. I can not give an example. 

I don't think that Shell pays much attention to their Marcellus drilling history when they lay out Utica test wells. Obviously they need to have access to a pipeline eventually, but the Utica work is exploratory, not developmental. So it has little connection to any prior Marcellus drilling. You don't drill a Utica well to hold acreage - it's far too expensive.

I didn't make myself clear....sorry....I was wondering why if they are doing exploratory drilling for Utica, they don't use non producing Marcellus wells that may be already drilled to 8000 feet for example.

That would be a DEP night mare.Utica and Marcellus wells are different qualifications.Utica wells are drilled 330 ft or more from outside perimeter of drilling unit.Marcellus wells can be drilled right up to the outside perimeter of a drilling unit.That is just one difference there are several more.Shell is testing to see how far the paying Utica expands to in there leasing area.

If getting a permit is sufficient to hold acreage, the cost of actually drilling the well would be irrelevant.  (Agreed though, it was Marcellus wells I was thinking of.)

If a lease has language that allows a drilling permit to extend the primary term, it will only work if drilling is actually commenced within a reasonable time after the permit is granted. You can't hold a lease with just a permit for very long. And even that is pretty risky from a legal standpoint unless the lease is very clear on the intent of the parties to allow that.

Then, you disagree with "Gringo's" response.  I have checked and assuming any requirements are met, it is possible to get a one year extension of an unconventional drilling permit. 


Your Q was not clear. For a new well unit, yes the permit process will hold, to send the lease in the secondary phase. As Jack said the operator has to make a good faith effort to follow thru to actually drill a well and declare a unit. There is plenty of court cases you can look up.

If your talking about the permits and notifications for units already declared it is a moot point, HPD'ed. The permits and notifications that are E&S are for the well pad and and have to do with inspections and reclamations and so on.

As you know it is hard to answer Q's not knowing the specifics and the context, most people here are focused on their own unit or would be unit area,their own lease language and so on. There are so many situations it not possible for a one fits all answer. 


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