Replies to This Discussion

Permalink Reply by N Bohl on March 18, 2012 at 1:52pm

I know someone who went and I will ask her on Monday and post here what I find out. I believe it was well attended. She told me they did have some maps, timeframes were discussed to some extent. I posted a list of future meetings as a Tioga County discussion with the one for Wellsboro happening on the 20th I think? at the fairgrounds on Charleston Road.

Permalink Reply by Marshall Ives on March 19, 2012 at 12:38am

Would like to know what happened too!   I'm away and hope to be around Wellsboro area Thursday if anyone wishes to bring me up to date.  message me on this or bigm613@hotmail.com.

Thankyou :)

Marshall

 

Permalink Reply by Ann Ticopa on March 19, 2012 at 1:19am

They didn't get their press release out for it to be in newspapers until the day of the Mansfield meeting.  There was an ad in the Mansfield Pennysaver the week before, but I missed it.   From the permits issued, it looks like one place they will be drilling in NE TC is the Roseville area, along their new gathering line   And, Shell apparently paid for some 4-digit state road patching in Jackson and Rutland Twps.  

So, I'd be interested in what your friend has to say.  Particularly if the W<->E cross-country slash being  cut just N of the Southern intersection of Bailey Creek Rd. and Rte 549 was mentioned.  Looks like either a pipeline or a power line, but there is no E&S permit in eFacts. 

Permalink Reply by N Bohl on March 21, 2012 at 7:32am

I talked to someone who was at the Mansfield as well as the Wellsboro meeting and do not have a lot of facts to relay. So I am unsure if the question of rte 549 was asked or addressed in Mansfield, I am also unsure about questions regarding inactive wells.

 The meeting for Wellsboro was last night and this is what I was told. 300 people came? Standing room only. A presentation was made like the one at Mansfield. A lot of questions from those there including perhaps some unhappiness regarding old leases with Phillips and/or East. My understanding is that as production continues and in some cases royalties are being paid people are trying to figure out what it all means. I imagine there are lease specific questions and that each land owner is in a slightly different position. Leases vary, units vary, some wells are drilled and some are still being planned and even with ones that are drilled and producing they are busy connecting them to the larger pipelines. After it is all said and done and folks can look back on it all I imagine different units will show different results also - but my impression has been even wells that are completed and going to market are not at full production levels - that's just my impression. Part of that may be that they shut various lines down when doing work nearby so there are various reasons for interruptions. So I was told that Shell is doing its best to answer questions but the more specific questions cannot be answered correctly in a forum like these. There were handouts that included both a local number and a Warrendale number for legal/ lease/ unit questions?

They laid out to some extent their plans for the year in Tioga County - maps etc.. showing units, planned wells and when they will be drilled and connecting lines. They said they have 12 frac rigs but they may not all be used in Tioga County. They addressed issues such as night lighting when drilling. They are re-thinking in some cases unit size possibly because they can drill out further and more accurately than they could years past- 9,000 feet out if needed now. I have been told that this would happen - that units may very well change either getting smaller and more specific or larger with much longer laterals - the consequences to land owners is debatable but my personal opinion is that it is OK. Shell said most pads/units will have 6-10 horizontals. They are exploring other layers/ Oriskany, Barnett, others? in Tioga County to some extant but are concentrating on the Marcellus. The other layers are spotty and vary greatly in potential but my understanding was that they have a few wells in the county dedicated to this type of exploration. So that is what little I know and would love to hear from others who were there.

 My personal take is that so far Shell is doing OK and my hope is that they continue to do work safely (for both their workers and the land) , do the work above board and as transparently as the industry can stand, and work on communication (which I think is the point of these meetings and hopefully they will continue to have them every few months). I think it's smart to have a lawyer or great adviser if possible but I don't think they are jerking people around too much. I am surprised at how many people don't understand their leases at this point but I suppose if you leased with Phillips a decade ago it wasn't relevant until now? From what I remember a lot of people thought, based on past experiences, that this would all come to nothing. That in itself may be a great reason to be cautious when possible and I imagine Shell is encountering that a bit.

Permalink Reply by N Bohl on March 21, 2012 at 7:51am

My pleasure. I could add one more thing. They said they are re-using frac fluid with the wells - taking out what they can afterward and adding liquid and re-using it. I don't know how often they can do this before it's shot. I also think that when they lay down pipelines the lines have more than one pipe with perhaps one being for water and/or frac liquid. I believe that would cut back some on truck traffic and maybe save them some money.

Permalink Reply by Ann Ticopa on March 21, 2012 at 9:17am

Thanks for the additional info.  No broadband in my part of TC so didn't download the YouTube videos, but they appeared to be of the formal presentation, not of the Q&A.  

I don't fault the people with the older T/BR leases for being impatient to see some $$, but it wasn't Shell landmen who made them the promises.  ERI and KKR made big bucks selling the leases to Shell for way more than the signing prices. 

It remains to be seen if the larger units are advantageous to landowners. If Shell does drill the longer laterals, that would lower the well density and the individual wells would be more productibe.  If not, the effect would be to hold more leases with a single well and the landowners' royalty would be dilluted.    

Permalink Reply by N Bohl on March 21, 2012 at 9:59am

I completely agree. I saw a lease from 2000 or 2001 and it was awful. The terms were really vague and to sign it meant that you were giving up any say-so with just about any type of development related to your land regarding O&G development including well sites and pipelines - for something like 30 years. I imagine many people with those old leases are going to have issues. I also think production costs could be deducted. Even the standard East Resources leases were pretty shabby. As far as I can tell Shell is trying to avoid strong-arming land owners. I have no way of knowing this but I imagine the majority of leases in Tioga County would allow for pipelines. Maybe I am wrong about this but I remember a lot of the leases saying something like "reasonable compensation" etc.. but that they had the right to do pipelines.

It is hard to have an opinion about unit sizes. It being used as a hold tactic aside it may not be a bad thing. Less land disturbance and fewer pipelines? I have read that it can yield more overall and most landowners would like that. As you wrote - it remains to be seen.

Permalink Reply by JOE REDDING on March 21, 2012 at 12:37pm

Josie;

          At the Wellsboro meeting they said that they are starting a case management program to answer questions that people may have in the area and they may be able to answer your questions. The number of the case manager for Delmar twnsp. is 570-662-9415. I hope this helps...

Permalink Reply by N Bohl on March 19, 2012 at 1:37pm

If you go to youtube and do a search with words Shell and Mansfield - sorted by newest first or upload date first - there are 7 short videos from what I believe are from the Mansfield Shell meeting.

Permalink Reply by Bonnie M on March 19, 2012 at 11:48pm

http://www.youtube.com/user/eidmarcellus?feature=watch