Does oil/gas mix with coal ?

Was approached today by Rosebud mine wanting to do a 800 ft core sample for a lease of my property for a deep mine. Called Chessapeak today to ask if this would effect future oil/gas lease and was told it was not a problem. Does anyone have any experiance with this ? Seems the coal lease is more lucrative depending on the number of coal seams. Although I think the coal business is a lot slower than the oil & Gas. Any advise would be helpfull.

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Permalink Reply by JK on January 9, 2013 at 6:36pm

Terry,

My sincere advice to you is let them do core samples of your coal.

After dealing with CHK for so long and the realization of them not doing anything in the way of development of shale gas, this will be your best bet for revenue.

Money is money and you might see it would be the same either way - coal or gas, just faster.

With CHK I believe we are looking at 5 more years before they develop the Marcellus here in Mon county, WV.

Are you in WV?

Permalink Reply by Terry giuliani on January 9, 2013 at 7:01pm
JK

No I'm from Steubenville township in Jefferson Co. Ohio. My lease with Range expired in November. Chk sent me a certified letter wanting to lease my property but said maybe later. I guess they found something more valuable. When called to ask about the coal, the manager was more interested and said he did not mean much later. Rosebud is coming tomarrow with the paperwork for the core hole and said the rig is about two weeks out. They said the entrance will be 200 ft below the river. They believe there are 6 To 8 veins. Rep was completely different, up front and easy to trust. Just not wanting to be taken like the first lease.
Permalink Reply by JK on January 10, 2013 at 6:02am

Terry,

How many acres do you have?

Permalink Reply by Jack Straw on January 10, 2013 at 4:22am

Terry,

         I think that you can view the Coal and the Oil & Gas as seperate and unrelated opportunities.

The Coal will be exploited within the first 1000' of the subsurface.

The Marcellus/Utica Shales will likely be present in excess of 4000' below the deepest coal that would be commercial.

 

The only impact that I would forsee would be in the locating of the surface pad for the wells.

This pad would likely need to be an appropriate distance from the subsurface mining activity; but the nice thing is that these wells are vertical (or near vertical) until they kick-out and build up angle to horizontal (and that does not occur until much deeper than the commercial coals). The horizontal legs of the wells can be located beneath the active coal mining, separtated by many thousands of verticall feet.

 

The adage "One bird in the hand is worth two in the bush." come to mind.

 

All IMHO,

                 JS

Permalink Reply by Oliver Perry on January 10, 2013 at 5:39am

Jack,

Is it possible to lease your coal rights and your oil & gas rights during the same period of time?

Permalink Reply by Jack Straw on January 10, 2013 at 6:34am

Short answer: Yes.

Long answer: Yes. Surface mining might result in more issues with respect to pad placement and placement of any gathering pipelines (when contrasted with deep mining) ... actually were the surface mining to precede drilling, there would be no potential issues.

 

All IMHO,

                   JS

Permalink Reply by Terry giuliani on January 10, 2013 at 7:45am

JK

I have 70 acres of a 250 acrer plot.  Not including the Zimnox property of about another couple thousand acres. I just left Dennis and told him about the Go Marcellus page so he could give us direct info on his Zimnox well. Dennis is more like the Guy on Green Acres so I dont know if he will, but I tried. Thanks to all that helped , I deeeeeeply appreciate it.

 

Terry

Permalink Reply by JK on January 10, 2013 at 7:55am

Terry,

Then if they mine the coal you are going to get alot of money pretty quick!

Coal seems to be much easier to mine than drilling for the gas in a way.

Maybe it's because of the gas glut which is constantly keeping us repressed on production being constantly stiffled.

I think you WIN!! YAY!!

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