0jw0dsu4txfuv

Drilling Information Questions Answered

To all members that have questions about the drilling of the Marcellus feel free to ask. Please keep the questions to drilling and locations. I don't know about leases in different areas but I will try and answer all related questions about the actaul drilling operations

Views: 1737

▶ Reply to This

Replies to This Discussion

Permalink Reply by craig on May 9, 2011 at 2:01am

I guess us folks in Beaver County can 'thank our lucky stars' that we have major transmission lines crossing  our county. Our first pad is less than 1000 feet from a 30" line and CHK has already welded an 'elbow' onto it and just dug a trench for the line from the pad to the transmission line. The guy doing the welding was very informative btw. It seems that everyone doing actual work at the site have been friendly and somewhat informative. I'm sure they are only allowed to tell us so much though....I can't blame the drillers for that.  Now we need to get the first well finished!

 

Permalink Reply by William Miller on May 10, 2011 at 7:59am
Homer, we're in Overton TWP, Bradford Cty, a couple miles up Minersville RD. An indepdendent surveyor explained to us decades ago that there is a strong likelihood of natural gas and oil reserves on our 7+ acres due to "unusual and extreme" shale formations and high ridges abutting state game lands on our property there. Of course, decades ago, that was somehthing to smile and nod about. With the current climate of exploration in Bradford Cty we are of course more curious than ever. Especially, since in retirement we are considering selling and relocating to the SW US. We are leased to Chief, with a 5 yr renewable coming up next summer. Have had several offers to buy out that lease at higher royalty but slightly lower bonus over the past few months (causing more curiosity). More confused than ever as PA politics seem to be causing everything in the exploration and development phase to be falling apart at the seams.  Thinking bout selling out but retaining o&g rights (greatly devaluing real property)....  can't find anything encouraging on DEP O&G well and pipeline permit site....    any input??????
0jw0dsu4txfuvPermalink Reply by 0jw0dsu4txfuv on May 10, 2011 at 8:07am

William,

I understand your situation. I also understand moving to some place warmer. There are several personal questions that you must answer. Do you want to hold on o the property or do you want to take the money? Personally I wouldn't take what someone told me years ago very serious. With the sesmic and downhole data nowadays it's remarkable.

Permalink Reply by Erin Carpenter on May 11, 2011 at 5:58am

Homer,

I have a couple questions for you.  I live in Bradford County, PA.  There is a well that has been drilled down the road from us.  It has not been fracked yet but according to the courthouse our land is in the propsed unit.  Our lease does not limit the O&G company to a certain depth.  So my question is this....If we are collecting royalties on this producing well and the O&G company decides to start drilling into the Utica shale will they be able to do so under the existing lease without having to pay bonus money or sign a new lease with us?  Just curious.  Also, I'm not sure how familiar you are with the drilling in Bradford county but I noticed on the Bradford County website maps that there is one township in Bradford County that has NO permits and no wells drilled.  It is South Creek Township.  Are you aware of any particular reason why they aren't intersted in drilling in that township? 

0jw0dsu4txfuvPermalink Reply by 0jw0dsu4txfuv on May 11, 2011 at 6:43am

I really can't about tell you about the depth lease deal as I don't know. The Marcellus does not run over

all of PA as some people believe

Permalink Reply by FXEF on May 11, 2011 at 2:11pm

Erin,

 

If your lease does not have a vertical Pugh clause, and you are receiving royalty from the Marcellus, then you are held by production. The O&G company can drill the Utica shale or any other formation under your current lease. 

0jw0dsu4txfuvPermalink Reply by 0jw0dsu4txfuv on May 11, 2011 at 2:13pm
This is true and you would be intitled to additional royalties under your orginal lease.
Permalink Reply by Erin Carpenter on May 12, 2011 at 5:44am
Okay I get it.  Now if my royalties end with the Marcellus I am no longer held by production right?  I would then be able to negotiate a new lease for the Utica shale right?
Permalink Reply by Finnbear on May 12, 2011 at 6:28am

Erin,

A couple things.

1) If a well has been drilled and your land is included in the drilling unit, you, the lessor, are HBP until the lessee releases you from the lease. This would not normally happen until the well has played out and is no longer making the lessee enough profit to justify continued production. At this point, they would probably plug the well and abandon it. They also may try to sell (assign) it to some other producer who may be able to get some production out of the well that the original producer was not able to for whatever reason.

2) You would have to read and interpret your lease's specific language to see what your lease actually covers. This is the ONLY way to be positive what you are dealing with. You mentioned that "Our lease does not limit the O&G company to a certain depth" which most likely means they are allowed to drill for ANY oil & gas that might be under the surface of your land.  If they did not specify a formation and a well is already drilled, then they probably have the rights to any/all formations via that lease. They would not be required to pay you any other bonus money if they rework the well to access a different formation but you would be entitled to royalties on any production just as you are now.

Permalink Reply by hunter777 on June 5, 2011 at 3:58pm

Could you respond about compressor stations?

Do gas companies usually lease or buy the land where they put these stations? What might be the price ranges to be expected for either option?

0jw0dsu4txfuvPermalink Reply by 0jw0dsu4txfuv on June 5, 2011 at 11:39pm

hunter777,

This thread is for drilling questions. Don't have any knowledge on Compressor Stations or the deals made with them.

Sorry

Homer

Permalink Reply by Farmhouse on July 6, 2011 at 5:25am

Could you comment on how much gas production requires a compression station? 

How many producing wells would it take before compression is needed? Thanks

RSS

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

Badges  |  Report an Issue  |  Terms of Service