Replies to This Discussion

Permalink Reply by Bob Rock on February 9, 2013 at 11:40am

That is the hilcorp --james well site. There is some large gas pipelines in mercer county,Tennessee natural gas has comperssion station on rt. 58 with permits being applied to build another on other side of road. 

Biggest problem will be all of the  oil flowing from mercer county to get rid of it !

Permalink Reply by JohnL on February 9, 2013 at 2:18pm

The Hilcorp-James well has 2 permits to drill west of the current site. Both legs will run parallel to each other towards Rt 318. Hilcorp and Chevron swapped leases in this area. I wouldn't be surprised to see additional permits at the James site. I have heard from a knowledgable source that Chevron in interested in drilling this general area. Hilcorp has a large number of leases in Southwest Mercer county as does Chevron via their Atlas lease acquisition, so I expect to see more lease swaps in the future.

The Tennessee Gas Pipeline station 214 in Mercer has 4 lines into the station and 3 lines out. These are 26-30in major transmission lines and are about a 1/2 mile from the James site. They will have no trouble getting their gas to market.

Permalink Reply by Dave on February 10, 2013 at 3:41pm

We had a guy today come with a permit to be signed from Vector to do seismic testing in and around our property. Going to do in ground blasting and thumper truck testing up and down the road. Must be going to get more activity in western West Salem Township. He told me that Halcon was buying up a lot of other land leases and they had some 150 square miles to do testing on.

 

Permalink Reply by bill on February 15, 2013 at 7:35am

correct me if I am wrong, but isn't 318 due south of the james well location?  Do you know how to find out who is included in the units?

Permalink Reply by JohnL on February 15, 2013 at 4:20pm

Bill- I re-read my post and you're right in that the First 2 wells run "south" of the James site not west as I stated. There's a website called Marcellusgas.org that members can request a copy of the DEP well location plat. The same information may be available from the DEP, but this is where I found the detailed survey maps, list of property owners and the plan view of deviated well bore. Both wells run parallel to each other and both will cross Rt 318.the well bore map show whose property the lateral cross. You obvious live in that area so you would probably find these maps to be interesting. Someone stated that Hilcorp is applying for permits to run North of the James wells on the other side of Rt 62 towards Lamor rd.this will be interesting to watch. Based on what you said it sounds like the gathering line will run on the north side of Rt. 62 down the hill to the TGP lines.??

Permalink Reply by bill on February 16, 2013 at 12:58am

I don't know the exact route but just around my immediate property.  In reference to my property, the well is coming North East from Lamor rd.  It will cross Zahniser Rd and then Rt 62 around the Flynn's area.  It isn't tying into the TGP lines.  I heard at one time they were putting in two lines and one would follow the TGP and cross RT62 at the bottom of Wallis Hill.  They decided not to do this because they didn't want to deal with the wetlands.  I am going to join the Marcellusgas.org site today.  sounds like good data!  They just put up a huge fence around the james well.  I am guessing this is for a pond.  

Permalink Reply by bill on February 16, 2013 at 2:47am

why would they run two legs parallel to each other?  I downloaded the maps and they are really close to each other.  Unfortunately, the 3000' circle just misses my property.  

Permalink Reply by JohnL on February 16, 2013 at 3:38am

Bill- as you said both 1H and 2H are only several hundred feet apart with both laterals crossing much of the same property. I'm still guessing the gathering lines will eventually connect to Tennessee Gas, but where? If they follow the existing TGP lines then they may connect at the station? I know there were DEP issues last year at the bottom of Wallace hill where the TGP
lines cross Rt 62. The fence they put up looks like it circles the pond and according to the plot map the rig will sit back off the road. I've been told from someone in the O&G business that this area is sitting on the good Utica (Mercer County sweet spot??) time will tell.....

Permalink Reply by Christa M on February 18, 2013 at 8:49am

I have been speaking with the Nisource people and they are trying to get a pipeline in soon so that the James well can tie into it and then the gas will be sent to the New Middletown, OH Cryo plant.  However, they are limited on time based on the migration of the native brown bat that is set to arrive back in the area in a month or so.  So, if they don't get the trees down before then they are at a stand still until November.  Also, they do not want to tie into the Tennessee lines when they can make more money with their own....so....it's a RACE!!

Permalink Reply by bill on February 18, 2013 at 8:56am

They told me the same thing Christa.  They want to start dropping trees by mid-March.  I don't think they will make it especially since most of us haven't signed yet.  By the way, if you would like to compare contract talk drop me a line.  For instance, I am trying for a 10% annual rent clause.  I can't say it's working but it's worth a shot.  

Permalink Reply by Christa M on February 18, 2013 at 9:01am

WE ARE TOO Bill!!! LOL We tried the Wheelage route but they didn't budge!! Our next step was the annual rent.  Our rep told us that he is almost 100% sure they will put in a second one right next to this one.  He also told us they want to start dropping trees March 1st.  He said they can do 5-6 miles/day.  We got him to up on destruction price but stuck with the $1/inch/foot.  I fdon't think they'll get in done in time either.  But I also talked to the DEP and they said there is a way around the brown bat...you have to have all the trees cut at night when they leave the trees so that when they return in the morning they'll just find another tree. It's going to be interesting!!

Permalink Reply by JohnL on February 19, 2013 at 2:48pm

Bill/Christa- very interesting to say the least. I'm no expert, but the brown bat issue seems like a ploy to get landowners to hurry up and sign a ROW. I think you have the right approach in working together and comparing notes. I would include others who are being approached for a ROW. As someone else said in another post, these pipelines are permanent, just look at how long the TGP lines have been there. You will only have one chance to get the agreement you want (-make sure you get paid for a second pipeline If there is one). They must know there's something significant under the James property. Good luck in your negotiations. Everything you learn and share helps others who will someday be faced with the same issues.

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