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Permalink Reply by Toby Rice on March 28, 2009 at 11:49am

William,
It is possible to drill a Marcellus well in a gas storage field, however, drilling is lined with red tape and requires cooperation from the company which operates the storage field (in your case Dominion). If you're stuck in a gas storage lease, you're going to be stuck in that lease, meaning your best shot at getting a well is from the operator who operates the storage field. Now, Dominion was not too interested in drilling Marcellus wells, but they have drilled a few, but more importantly, they did a deal with Anterro Resources late summer (closed Sept. 31 i think), Dominion gave Anterro the rights to drill on 114,000 acres in exchange for an override and a $3,000+ per acre drilling commitment. This means that Anterro will be spending 347 MM in drilling in the upcoming years. I would try and find out if your acreage was included in the farm out to Anterro- if so- be nice so that the oil comapny will lean your way and spot a well in your unit!

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Permalink Reply by William Ladd on March 28, 2009 at 12:42pm

I thank you Toby very much for your information. I am located in the north western part of Tioga county of Pennsylvania. In fact there is a Dominion pumping station within about 3 miles as the crow flies from where I am located.

In the last year there have been at least three wells drilled within this 3 mile area. I do not know who the drilling was done by however. But they were drilled within a mile or closer to the pumping station.

So I guess I will have wait to see if someone comes around again.

But it looks as if Dominion might want to sell their leases to other outfits. I have not found out if my property is part of Anterro acreage or not as yet.

Bill L.

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