Replies to This Discussion

Permalink Reply by paleface on October 28, 2010 at 12:53pm

The price of natural gas is so low right now I'm glad mine isn't being sold.We have alot to look forward to this gas play is in the starting stages this is so big its mind bogling barnett was two counties and it developed quickly this is 3 or 4 states its gonna take some time to get the infrastructure built rome wasen't built over night?

Permalink Reply by Mr_Safety on November 2, 2010 at 11:03pm

I know someone in the business of selling equipment to drillers operating locally. This person told me that a number of people he routinely deals with have stated they can't believe landowners are not challenging the practice of lease holders locking them into "old (low rent) leases throught their practice of establishing (overly large) production units; specifically production units of 640 acres when only a single veritical well has been drilled. According to these guys, when only a single vertical well has been drilled, the maximum size of a production unit can not exceed 90 acres. Supposedly the lease holders are concerned that "soon" someone is going to pick up on this practice and legally challenge it. Does anyone know if there is any truth to this?

Permalink Reply by Lynn Wigglesworth on November 3, 2010 at 1:49am

I don't think there are any laws in PA pertaining to the size of a unit for the Marcellus. East's lease specifies a 640 acre unit and doesn't say what type of well is required to hold that much acreage. As far as I know, East can hold all that land forever with non-producing wells. It's all spelled out in the lease, so people literally signed up for it.

Permalink Reply by William Ladd on November 3, 2010 at 2:13am

For a company to hold a lease forever means that something is drastically wrong! WRONG! WRONG!

Everything else is changing from day to day. What RIGHT does a company have to think that they are immune from change?

Permalink Reply by Lynn Wigglesworth on November 3, 2010 at 6:22am

It may say 'Lease' but if you read the contract, it's closer to selling the rights to explore for/extract natural gas, with you retaining a royalty. It can be a 'forever' thing, or at least 'forever' in terms of our lifetime. I agree that there should be some way to get out of these contracts if your resources aren't being developed, but I doubt that the gas companies will put that in the lease.

Permalink Reply by paleface on November 3, 2010 at 9:07am

Lynn I have heard of people fighting the depth of a well for holding purposes and have won,if you fight back with a lawyer you can win in tioga co.it has been done in the past against east.

Permalink Reply by William Ladd on November 3, 2010 at 10:59am

Well then lets fight these picayunish ridiculously low $2.00 leases!

Permalink Reply by Lynn Wigglesworth on November 3, 2010 at 12:34pm

John; why would anyone fight the "depth of a well for holding purposes"? Is that like a storage well? The depth of a storage well seems like a minor fight compared to trying to void an entire contract.

Permalink Reply by paleface on November 3, 2010 at 1:51pm

Before shell bought east,east was drilling very shallow wells to keep the lease's,east was challenged in court and was ruled they could not do that,the well has to be able to produce to hold a lease.A hundred foot well wont keep a lease.

Permalink Reply by paleface on November 3, 2010 at 3:23pm

I don't know what court it was I would think it was something local.The person who challenged east lives in middlebury center?

Permalink Reply by J. Rossi on November 7, 2010 at 11:15am

They will drill as many Wells they can before they start a gathering system for the pipeline. Most companies do this.

Permalink Reply by THOMAS H CREWS on November 10, 2010 at 6:04am

East has drilled the Cummings well and is currently drilline the Matz well.Both are on Treat rd. in Chatham Twp.They have run pipes from just west of Locey Creek Rd. west to the Matz site then to the Meter station on Glenn Rd. and on to the Cummings well.From there the line is headed to the Neal well site.Alot of it is covered already.Take a ride over if you live near by.they would be further East but have a neighbor problem for a pipe right of way .Also heard they are exploring other route options.I saw this myself over the past 20-30 days.Last there Sunday pm.

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