What's going on with Middlesex Township in Butler County?

Is anyone in the group knowledgeable about current events, particularly near Overbrook Road?  What type of unitization is in process for what well?

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Permalink Reply by Adam Elliott on March 25, 2016 at 2:45pm

Seems that the Geyer well is no longer being contested legally. The upper portion has already been drilled with a “top-hole” rig. On the last update (3/8/2016), they were working on installing additional sound barriers and awaiting the availability of a larger rig, no ETA.
Source: http://www.edline.net/pages/Mars_Area_School_District/Public_Notice...

Permalink Reply by RB on March 26, 2016 at 2:30am
Thanks for update. Any new wells in the works? From what I've read, due to recent prices, landowners are paying dearly for that with deductions. Hope that's not true in all cases. So not right
Permalink Reply by Philip Thackray on March 26, 2016 at 2:35am

About 80% deductions from XTO and Rex here in Butler County, Forward and Penn townships.

Phil

Permalink Reply by RB on March 26, 2016 at 2:43am
They are deducting 80% ??? What was it in better days?
Permalink Reply by Philip Thackray on March 26, 2016 at 2:53am

The Rex well (Brownsdale West behind Gumto Greenhouse) started up recently.  There were no better days.  The XTO unit (Marburger Dairy 2 on Brownsdale Road) was around 30% deductions for the best months.

Phil 

Permalink Reply by RB on March 26, 2016 at 2:49am
They are deducting 80% of the > or = 12.5% depending on contract terms ??
Permalink Reply by Philip Thackray on March 26, 2016 at 2:59am

They calculate your share of the gross sales amount using your "decimal" number and deduct 80%.  For example if my gross is $1000.00 they give me $200.00.  Sickening isn't it.  I will say, the sales prices are REALLY low.

Phil

Permalink Reply by RB on March 26, 2016 at 3:12am
What happened to Guaranteed minimum royalty act of 1979? I had assumed that if they offered you a number > 12.5%, that your check could not be less than 12.5%. How can they get away with that? Yes it is sickening. Some kind legalese workaround? And HB 1648 shouldn't even be necessary really. Did it get passed?
Permalink Reply by Philip Thackray on March 26, 2016 at 3:25am

Kilmer v. Elexco (Google it) ruled that the GMR act does not apply to these wells that require considerable processing after the gas leaves the ground.  That was the PA supreme court - hard to get past that.  There is talk about passing some legislation but I don't see where the constituency is.  How many people are part of a gas and oil unit?

Phil

Permalink Reply by RB on March 26, 2016 at 4:21am
Interesting. If these deductions are only based on costs after extraction and if proportionally shared, meaning the energy firm also incurred costs of their portion at 80%, then that leaves them 20% to pay for costs to drill, administrative etc. Somehow i doubt that.
Permalink Reply by Middlesex Resident on March 26, 2016 at 4:02am

Pipelines are being built between the Geyer Well & Kennedy Well. Possibly the future Wilson well also. Not sure about pipelines for that one. Hopefully they will start drilling once they are built. The process is fascinating to watch.

Permalink Reply by FairMktValue on March 31, 2016 at 2:05am

MR

Yes the pipeline building is sort of fascinating.

I had a pretty good look at the Ferree to Kennedy. Very efficient, seemed to have every move planned very well.  Had an X-Ray truck going up and down the line certifying the welds as they went.  Looked at some of the welds myself and was impressed.  Very well done. 

They pulled/pushed about 2,500 ft of pipe through the drill hole under Rt 8 in one night. Shocked the heck out of me.

Cheers

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