A well next to our property
We just returned home from two years in South America teaching school to find a gas well 100 yards next to our property line. The sight was more of a shock to our sight than anyone who tried to tell it to us. We had received word that our well was tested but other than that we have had no contact with anyone from the drilling or gas company. Do we have any avenue for communication with them? We hear others have had some leases or negotiations for some compensation. Is this even possible for us with only 6 tenths of an acre? It seems like we should have had, or should have, some forum for the incredible life-changing effect this is having on us. Should we expect nothing? What should be our first step?
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Replies to This Discussion
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Permalink Reply by May on -
Is the well on your property? If so, then you've received your bonus payment/delay rental and should now receive either a royalty or a shut-in fee. Furthermore, the company will begin site restoration to regrade the land and replant vegetation. If not, the well's on your neighbor's property and what right do you have to their surface? Have you leased your mineral rights? If you have than you might be part of the drilling unit in which case, again, you should now receive either a royalty or a shut-in fee.
The well sites I've seen have been restored wonderfully, and I think once the vegetation fills back in, a well site less visually far less obtrusive than a windmill.
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Permalink Reply by Robin Fehrenbach Scala on
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The completed well will disappear when vegetation grows in and you won't even notice it.
I would be more concerned about getting royalties for the gas under your land. It won't be much but it IS yours!
Find out what company drilled the well, contact them about getting leased, and start the process. Make sure they know you are the nearest adjoining land to the well. They should give you the lease bonus and royalties and put you in the unit.
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Permalink Reply by ben yanda on
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SInce they already drilled the well and hopefully are producing you need to find out as others suggested if you are in the wells producing unit. (If in fact the well is 100 yards from your property chances are you are.)
If you are in the wells production unit (or spacing) they should either attempt to negotiate a lease with you or there is an option that you are forced pooled. (Force pooling rules are different by every state).
ie. rather than recieving a royalty (10%) you recieve a payment of all your gas (minus expenses).
For example: If the well spacing is 100 acres. Each acre is contributes 1% to the wells production.
For ease of math lets assume royalty is 10% (usually more like 1/8th but it varies by lease)
Each acre would recieve a 10% share of 1% of total production. If your neighbor's tract was 25 acres they would recieve 10% of 25% of the total production value. You would recieve 10% of 0.6% of the total production value (or 0.006% of the total production value).
On the other hand if you are in the wells production unit (determiend by state) you get a well for free (no lease) and the company is required to pay you your portion of the proceeds in full (0.6%) minus a pro-rated portion of the expenses. This in the end is a much better deal for you. I would talk to a knowledgable lawyer if you have not leased your minerals and you own them. 0.6% is a much better deal for you than 0.006%.
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Permalink Reply by Ralph Wolfgang on
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I guess since I posted this I found I do not have "rights" in my deed and I might as well just be quiet with all of this. I did read my deed and it says that the mineral rights are "excepting and reserving" from somone way back in the deed line - long dead now. So I have nothing but the sound and sight of this next to me and no rights at all. Thanks for your comment. I appreciate your time.
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Permalink Reply by Ralph Wolfgang on
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You have given me some hope here. Thanks.
Rick
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Permalink Reply by Robin Fehrenbach Scala on
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In Pennsylvania that mineral rights exception DOES NOT include gas.
Before you give up, do one more thing. Find out who the company is and call them. Tell them you are right next to the well and want the unit map to see if they are drilling under you. Keep talking to them until you get what you need. DON'T TELL THEM YOU HAVE NO MINERAL RIGHTS. You probably do.
It's worth the time to check and you could end up with a bonus and royalties.
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Permalink Reply by Ralph Wolfgang on
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Thanks for the hope here. I will follow your advice and get more information. It just doesn't seem right that one whole side of our property is now a picture of a moonscape landing rather than the wild and beautiful we once had. Even a small compensation would be something...
Rick
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