Replies to This Discussion

Permalink Reply by Thomas Lilli on November 21, 2015 at 2:11am

Knowing basically nothing about geology, my blink reaction to relatively small tremors in areas not prone to tremors is that, there are stresses that must have built up over the millennia that have now been released.

I would look to use the same technique to "release" tensions along more volatile regions on a regular and controlled basis rather than wait for stresses to build naturally and fracture uncontrolled. Same principle as controlled burns in the forests.

Again, talking out of ignorance here. But, being open minded may sow a new
seed in discussion.

Permalink Reply by Ann Ticopa on November 21, 2015 at 9:33am

Anyone know if a drilling permit (or possibly just an E&S permit for the pad) is adequate to hbp leases for land included in the declaration?

Permalink Reply by Gringo on November 22, 2015 at 3:28am

Yes, it is part of "drilling operations", affirmed by the courts. If there is a Declaration of P&U filed than it is already a done deal HBP'ed. The Q was a little hard to follow.

Permalink Reply by Ann Ticopa on November 22, 2015 at 4:32am

Thank you.  Sometimes there will be permit applications for areas where it seems unlikely SWEPI would be drilling anytime soon.  (And it usually doesn't take long to get the necessary permits.)  So, why the premature permits?

Permalink Reply by N Bohl on November 22, 2015 at 1:06pm

There are areas where drilling permits were issued, never used and Swepi did not declare a unit. I do not know why - I guess plans change?

Permalink Reply by Jack Young on November 22, 2015 at 3:45pm

I don't think that Shell pays much attention to their Marcellus drilling history when they lay out Utica test wells. Obviously they need to have access to a pipeline eventually, but the Utica work is exploratory, not developmental. So it has little connection to any prior Marcellus drilling. You don't drill a Utica well to hold acreage - it's far too expensive.

Permalink Reply by paleface on November 23, 2015 at 2:09am

That would be a DEP night mare.Utica and Marcellus wells are different qualifications.Utica wells are drilled 330 ft or more from outside perimeter of drilling unit.Marcellus wells can be drilled right up to the outside perimeter of a drilling unit.That is just one difference there are several more.Shell is testing to see how far the paying Utica expands to in there leasing area.

Permalink Reply by Ann Ticopa on November 23, 2015 at 1:43am

If getting a permit is sufficient to hold acreage, the cost of actually drilling the well would be irrelevant.  (Agreed though, it was Marcellus wells I was thinking of.)

Permalink Reply by Jack Young on November 23, 2015 at 9:03am

If a lease has language that allows a drilling permit to extend the primary term, it will only work if drilling is actually commenced within a reasonable time after the permit is granted. You can't hold a lease with just a permit for very long. And even that is pretty risky from a legal standpoint unless the lease is very clear on the intent of the parties to allow that.

Permalink Reply by Ann Ticopa on November 23, 2015 at 11:25am

Then, you disagree with "Gringo's" response.  I have checked and assuming any requirements are met, it is possible to get a one year extension of an unconventional drilling permit. 

Permalink Reply by Gringo on November 24, 2015 at 3:10am

Ann,

Your Q was not clear. For a new well unit, yes the permit process will hold, to send the lease in the secondary phase. As Jack said the operator has to make a good faith effort to follow thru to actually drill a well and declare a unit. There is plenty of court cases you can look up.

If your talking about the permits and notifications for units already declared it is a moot point, HPD'ed. The permits and notifications that are E&S are for the well pad and and have to do with inspections and reclamations and so on.

As you know it is hard to answer Q's not knowing the specifics and the context, most people here are focused on their own unit or would be unit area,their own lease language and so on. There are so many situations it not possible for a one fits all answer. 

Permalink Reply by Ann Ticopa on November 24, 2015 at 5:42am

From your response, I was satisfied you understood what I was asking.  It was a casual, hypothetical question.

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