Replies to This Discussion

Permalink Reply by Lynn Wigglesworth on September 10, 2010 at 12:56am

And that figure is PER YEAR, not PER DAY.

Permalink Reply by Scott Blumenstock on September 10, 2010 at 2:08am

I can tell you the lease my friend has is 45$/day for his small piece of property. Heck using those calculations of 5$/acre on a yearly basis would not put much initiative behind the company to get the gas to market very quickly.

I'm going to shoot for 1k/month on my shut in clause... hey all they can do is say no and offer up something else.

Permalink Reply by Lynn Wigglesworth on September 10, 2010 at 2:14am

What company did your friend lease with? East won't change their shut-in policy...$5/acre/year, and they can hold you that way forever.

Permalink Reply by paleface on September 10, 2010 at 2:22am

I wonder what twinn tiers is asking for shut in?

Permalink Reply by Rambo on November 2, 2010 at 1:44am

I was told by east that a well can only sit for 9 months per government regulations before they have to reclaim the well site. That means put it back to like condition before it was disturbed. Plow it under!

Permalink Reply by Lynn Wigglesworth on November 2, 2010 at 6:43am

They can still come back and reopen it. The well near me isn't finished (just a vertical, no pipeline), but it's been regraded and planted with grass. You can barely find it unless you know where it is. I assume they will rebuild the pad and finish it someday (they've declared the unit, so they are holding all those leases).

Permalink Reply by Jim Bob on September 10, 2010 at 9:01am

So if the whole county is on hold for export than will the prices/royalties drop from the additional supply?

Permalink Reply by 2pwyhp2o205y9 on September 10, 2010 at 9:19am

what do you mean please?

Permalink Reply by Jim Bob on September 10, 2010 at 4:29pm

I wondered if there would be enough output to cause the prices to drop which would cause the royalties to drop. Could it bump the balance of supply and demand?

Permalink Reply by William Ladd on September 11, 2010 at 1:31am

Jim Bob, If that were true and that is the plan in the long run, then wouldn't there be a land man at every door promising a very good lease but not such a good royalty as some drillers seem to be putting out for the first five years?

I guess there are several ways to look at it.

Bill L.
aka Bummy

Permalink Reply by Jim Bob on September 12, 2010 at 11:19am

The royalties they show are estimated based on current market value so they are probably higher than they will turn out to be as prices drop.

Permalink Reply by Lynn Wigglesworth on September 11, 2010 at 1:53am

There is already a glut of natural gas, and that will only get worse as more wells come on-line. The price of natural gas has fallen significantly over the past 2-3 years, and since payment to landowners is based on the market price, they are receiving less than they would if gas prices were back up again. I believe that with lower prices, there will be more conversion to natural gas for bus fleets, utilities, etc., so demand will be there. I don't know if the price will ever go back up to what it was.

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