In one of the early landowner meetings held by Laser Pipeline, a representative of Cabot Oil said  that Royalties would be shared, depending upon the amount of land involved, by property owners within a mile from the drill sight.  Who and what determines the area.  How can a neighboring landowner get this information?  Is there a website that contains the answers to these questions?    Bob

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Comment by Billy Park Whyde on December 8, 2011 at 10:37pm
I would argue he made a generalized statement. For him to say everyone within a mile and utilizing 640captive acres is stretching it. Depending on the state would also make a difference.
I contacted the Ohio div natural resources here to do a VERTICAL Well into the Utica would require a 40 acre site. However in all practability a Utica well would be Horizontal. At that point it becomes a question of which direction or directions they drill. I was told they would have to be 400' from other property lines which would exclude say a neighbor thats say 500' from your property line if they were heading away from that neighbor. SO basicly they could drill a multi well fan shaped pattern with out including neighbors or requiring 640 acres. However every oil company wants as much land as they can get. I hope this makes sense to you.
Comment by Todd Charles on April 6, 2011 at 3:00pm

The O&G company generally determines the size of the production unit. Here in WV, my production unit is 640 acres.

Not all LAND/SURFACE owners are paid royalties - only those who also own their GAS/MINERAL rights, get paid whatever percentage they leased their gas, according to however many acres they have in production.

In my production unit, only one other neighbor owns their surface and gas/mineral rights - so most of my neighbors will not collect royalties.

If you are a surface owner only, you will get paid for surface disturbance if 1) you sell an easement or right of way for access roads or pipeline or 2) you agree to allow the pad to be built on your land. But it will be paid in a lump sum, and is taxable income.

In WV, most COAL, GAS & MINERAL RIGHTS were "severed" from the land, and retained by owner's, many generations ago.

Your property deed should state if you own your COAL, GAS & MINERAL RIGHTS as well as your LAND/SURFACE.

As to answers for your questions, avail yourself of all the threads and information on this site - if you don't find what you're looking for, just do as you did here :  put it up for debate and discussion.

There is so much great information here, and people who are willing to help you.


Todd Charles 

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