Harrison County Marcellus

I was approached by my neighbor today in Harrison County near Shinnston. He tells me that he was contacted by Antero Resources about drilling a new Marcellus well above both our tracts but not on our tracts. They will need access roads, frac ponds, compressor station and storage. They cant get to close to his land because he has a house there, but my tract is flat, cleared, and undeveloped.

They have'nt called or written me. I really do not want to deal with them at all and since they are not drilling on my land...what are my rights NOT to provide any land to them. 

Then there is the question of well spacing. There are already several shallow wells in the area and drilling a Marcellus would be less that 1000 feet from a shallow well. Is that permitted?

If I decide to enter into an agreement, are the lease rates monthly? Say 2000 per month per acre, 5 year lease paid in advance. plus timber, plus reclamation, plus damage, plus road easement, plus pipe footage per pipe.

I only have surface rights.

Views: 901

Replies to This Discussion

Permalink Reply by Todd Charles on December 8, 2010 at 9:22am
Leases are for mineral and gas rights only. Surface/land owners do get compensated for easements (roads, pipelines, catchment ponds, etc) damages to trees, landscaping and water, maybe pad placement - but if you do not own/have title to the gas and mineral rights under your land - then the gas, oil and minerals under you are not yours to lease. Chances are that Antero Resources have already leased the gas under you from whomever owns it. That is why they have not approached you about leasing your G,O&M rights - you don't have any.

In West Virginia, they may drill within 200 (two hundred) feet of a house or structure (not 1000 feet) - and there are no regulations about shallow well placement. Often the company leasing the Marcellus Shale Gas rights has already bought the shallow well gas rights, as well - not always, but often.

When we are talking about $ per acre in a lease situation, it is a one time only payment commonly referred to as "signing bonus money" - the real money is in the payment of the royalty from the production of the gas, once the well is drilled and producing.

Wish I had better news for you about "leasing" but as a land/surface owner only, you do not own the gas, oil or minerals beneath you.

Sincerely, Todd's Mom
Permalink Reply by Doug on December 8, 2010 at 9:52am
Since they are not drilling on my land, then I do not have to enter into any agreements either. They will just have to work around me. I thought I read somewhere about horizontal drilling and getting permission from surface owners? I need to do some more research.
Permalink Reply by Todd Charles on December 8, 2010 at 10:19am
...also, you say there is a shallow gas well there - that means that a pipeline/easement already exists - which means if it doesn't already go through your property, then it's unlikely that they need an easement through your property - they will use what already exists.

With the advancement in re-cycling of frac fluids, and horizontal drilling; pads, containment ponds, transmission stations are all getting much smaller, more efficient or eliminated all together.
Permalink Reply by Doug on December 8, 2010 at 3:55pm
One thing I do know is an easement. No you cant just use an existing easement. Easements have a purpose. In this case a gathering line for example. Easements are also tied to "intent" of the grantor originally. If the intent was for a single line, you can't just add lines to it. You can maintain the original line, but changing it changes the easement agreement.

So if the original easement was for a 4 inch line. You cant just add a second 4 inch line or an electrical line in the same easement. Thats called "overburdening". A new easement must be agreed to. Even if a Marcellus well was drilled near an existing shallow well. You cant overburden or change the intent any existing easements. There are plenty of case laws to support that theory.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service