"That’s a very good question. While it’s certainly possible for some to escape, the gas is still trapped within the formation. The geologic walls that separate the formations remain undisturbed during a frac, unless there is a fault or…"
"Bullfrex -- depending upon the length of shut-in, the production numbers typically spike once the well is turned back on due to the pressure build up. This really shouldn't have an effect on the EUR since the well should quickly get back…"
"Seems unbelievable, but $1.50 - $2.00 is uneconomical for most operators. The cost of LOE(~$0.30), compression (~$0.30), gathering (~$0.50) and FT ($0.40-$0.60) (not to mention additional processing/separating fees in wet gas areas) add up…"
"Great discussion. Although your final point is a common misconception, Lori. It is actually the rig costs and other costs associated with completions that operators have needed to cut down on in order to survive. Hence, the drilling the service…"
"All great points and concerns, Lori. Also keep in mind that if a lease also has shallow production, it may not even be considered shut-in if the operator shuts in the pad. Some leases require all wells to be shut-in to trigger the…"
"Unfortunately, from a broad perspective it is just that simple. The specifics on how that affects a lessor's particular interest is going to be governed by the lease and any unrecorded agreements they may have with the operator."
"Not enough info there to do anything more than speculate. Could me any myriad of reasons: shut-in due to pricing, MQs exceeded, nearby activity, pipeline issues, general safety issues, the list could go on."
"Not necessarily true on either account. A lease to drill can be as forever as a ROW. Both go away without activity, both can last forever with activity.
A SUCA is neither of the above. The lease that is not a non-surface lease…"
"Sounds like the attorney is on it. If they are aware that an agreement is needed, then there has to be some consideration on your neighbors side. SUCA stands for Surface Use Compensation Agreement, so that should be what she's presented…"
"You seem to be aware of most of the variables here, but oil and gas leases by default come with surface rights because the mineral estate is dominant to the surface. This is why you need explicit language to make a lease a non-surface…"
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