Replies to This Discussion

Permalink Reply by Jack Straw on October 20, 2012 at 2:12pm

It is possible to drill through a Natural Gas Storage Field.

This is how I would suggest that this might be accomplished:

It would be best to do this towards the end of the Winter Withdrawl Season, when the pressure in the Storage Fields is at a minimum.

The proceedure would likely involve an additional casing string.

Drill down to above the top of the Storage Reservoir, set and cement casing.

Mud up to overweight, such that the pressure exerted by the mud column exceeds the pressure in the Storage Reservoir.

Once you have drilled through the Storage Reservoir, set and cement casing.

Drill ahead in the normal fashion, as the Natural Gas Storage Reservoir is now fully isolated behind casing.

 

My WAG (wild axxed guess) would be that drilling through a Natural Gas Storage Field might add 25% to the drilling of the vertical portion of the well; perhaps 5% additional to the total costs of drilling, fracing and completing a horizontal Marcellus or Utica well. Again, this is a guess as to additional costs of dealing with the storage field.

 

All IMHO,

                 JS

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Permalink Reply by Tim Tarr on October 20, 2012 at 2:14pm

Usually the company that has storage rights has control (storage lease) of the O&G rights. Other than that it's a question of casing the (new) well properly. Keep in mind thats from my limited understanding.

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Permalink Reply by Donald on October 20, 2012 at 2:24pm

Why would you drill through? i'm sure it's possibale, but why not drill under?

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Permalink Reply by Jack Straw on October 20, 2012 at 3:38pm

Imagine a Natural Gas Storage Field that is circular in shape and of a 10 mile diameter.

Imagine that it is possible to drill horizontally for a distance of one mile.

If you restrict yourself to drilling the vertical portion of the well outside of the Natural Gas Storage Field ... and then drill the horizontal portion beneath the Natural Gas Storage Field ... then, you are leaving a very large donut hole undrilled.

Since there is minimal additional expense and the technology has long existed that allows you to safely drill through the Natural Gas Storage Field, there is no reason to leave the resource beneath a Natural Gas Storage Field untapped.  

 

JS

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Permalink Reply by Donald on October 20, 2012 at 3:48pm

Yes I get it, makes sence. thats why i'm here. to get educated.

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Permalink Reply by Jack Straw on October 20, 2012 at 4:45pm

That's why I'm here, to get educated.

And it is all free!

In return, I try to pass along what I learned while working in the industry; sometimes biting the hand that once fed me.

Retired, I am just another Landowner - hoping to cash in on one of those shale wells.

 

JS

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Permalink Reply by Janice L. Hancharick on October 21, 2012 at 4:38pm

Hi Jack!  Good to see you're still spreading the good word.  Regarding the initial question it has been experienced in the 4-County (NY/PA) region that permission has been granted to some individuals by companies holding leases on AC for storage, even when the heading of the lease states Oil and Gas Lease.  The circumstances some of our members found themselves in became favorable after they wrote a letter describing that their AC has ONLY been used for storage ... no drilling ever since the lease was signed.  The storage field in question is shallow.  The geology won't allow deeper storage NOR will it allow high-pressure storage.

When permission came back allowing the owners to deep lease (Marcellus/Utica) it  specified the wellpad be placed outside the storage field, but allowed for horizontal work "X" number of feet below the storage area.  Obviously this won't work in all areas but it did for some of our members.

Just another tidbit of "info" ...

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Permalink Reply by rmc on October 21, 2012 at 1:29am

We are located in the Nisource storage field in MajorSville WV . We have leased our deep rights to a different company that acquired three permitts to drill wells they then sold out to Chevron so now we don't know if they will drill the wells or not.

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