Replies to This Discussion

Permalink Reply by Lynn Wigglesworth on September 4, 2010 at 5:27am

There are quite a few wells but no pipeline in Delmar/Shippen townships, so no one here is getting any royalties yet.

Permalink Reply by Jim Bob on September 4, 2010 at 9:08am

So what happens next? Is there a pipeline in the works? We have it in our lease that they can't store gas under our property. I'm not exactly sure how that works but could that be what they are doing in Delmar/Shippen?

Permalink Reply by 2pwyhp2o205y9 on September 4, 2010 at 9:23am

There are no pipelines in Delmar and there maybe one under construction out in west shippen but not sure. I do not think there is any gas stroage going on in Delmar...just waiting for the pipes to be put down.

Permalink Reply by Lynn Wigglesworth on September 4, 2010 at 9:40am

They are drilling wells and shutting them in...basically just sitting, waiting for the pipeline. I saw on this forum that a permit was just filed for a pipeline. I know they can lay it pretty fast once they get going; it has to go from at least Stony Fork up to the Tennessee pipeline (?) north of Middlebury Center.

Permalink Reply by 2pwyhp2o205y9 on September 4, 2010 at 9:46am

I bet there is method to Their madness.

Permalink Reply by Lynn Wigglesworth on September 4, 2010 at 10:04am

East is doing it to hold the leases they have been furiously gathering for the past few years. They drill a well, shut it in, declare a unit (holding 640 acres of leases), then move on to the next well. They aren't wasting time or money on pipelines when they have leases ready to expire if they don't drill.

Permalink Reply by Jim Bob on September 5, 2010 at 1:58am

They can't just keep spending without having a return though. They must be working on a way to get it to market.

Permalink Reply by K. G. on October 26, 2010 at 5:59am

This is what is happening to me - my lease is expiring this December, and they mailed me a new lease to renew, then pulled the offer off the table - claiming that we took to long to mail it back - after discovering we were in a unit. Now they are drilling and keeping us locked into to old lease (though we do not know how this is legal). Disgusting, but expect nothing less than this in the future.

Permalink Reply by Brian Day on October 26, 2010 at 2:15pm

My lease specifically stated that I was to notify them in writing at least 90 days before the lease ran out if I no longer wished to continue the lease. I have done this by registered mail and have recieved confirmation that the lette arrived at their offices. What happens now, if anything, is anyone's guess. There is a vertical well drilled within 500 yards of my property line, but it is not in production, nor have I been notified of any unit corresponding to that well. Is there a pipeline into the well that they are drilling near you, K. G? I think that a well really has to be in production before it can truly nail down a unit for any length of time. They might stall without production for a time, but probably not indefinitely. I mean - without production, there is no real proof that viable gas exists at the bottom end of the pipe. If that unproven well is not on your land, it seems unfair and challengable in a court that they should be able to hold perpetual claim to your undrilled land, which may truly hold gas under it to be extracted and sold by another company. This would be more profitable to the state in taxes etc than allowing a company to hold land unutilized for many years. I also have doubts that 640 acre units will be allowed for many more months, especially and hopefully after election day.

Permalink Reply by Ann Ticopa on October 26, 2010 at 5:18pm

Why would 640 acre units be disallowed?

Permalink Reply by Ann Ticopa on October 27, 2010 at 3:03pm

Reply to Brian -
Agreed that 640 acres would be excessive for a single horizontal shale well. But the assumption is that if nothing goes wrong, five additional wells will be drilled from the same unit pad.

Permalink Reply by Lynn Wigglesworth on October 27, 2010 at 12:45am

If you read East's lease, they can hold a lease forever with a shut-in well, as long as they pay you your $5/acre/year. East has a well near me that was drilled over 2 years ago and isn't in production. They are holding leases...about a 620-some acre unit; it's only a vertical well, so there's no drilling under most of these properties, but they are still held. They need many many miles of pipeline to hook it up, and haven't even started it yet. The same is true all over southern Delmar/Shippen townships. Wells are drilled, units declared, leases are held...no pipeline, no production, no royalties.

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