OT: Marcellus Shale, Gas, Drilling, Surveys, ETC

[flyboy71]

I need some help understanding the whole gas drilling, exploration, surveying as far as what I should do as a property owner. Im half owner on property in upstate PA and am now starting to receive letters regarding permits for geophysical surveys being requested by one of the gas drillers in the Marcellus shale region. Im inclined not to approve this until I know if I should ask for a lease agreeement upfront. The letter states the potential for clearing trees, brush, etc to bring in wood gators and buggy drills to drill shot holes but also states they will claim resposibility for any damages. Theres no upfront compensation indicated. Im clueless on this so if any of you know the details on how this is properly handled from a landowners standpoint, please point me in the right direction. Most people I know that have signed lease agreements have acres of land, whereas Im sitting on just over an acre.

[fordman]

we had some land a few years ago. when oil prices first started goign up. a company came along and offerec us a oil lease with a payment if we signed up. they could go on and drill or whatever. within so much time. we signed it. got a check. and never heard or seen from them again. the contract ran out. and we got free money. they never came onto the land and we never seen them around. i would ask fo rth elease first and a note about soem sort of payment. a lawyer would be a help in this about making sure they gave you a contract to get paid with.

[stephen44]

I need some help understanding the whole gas drilling, exploration, surveying as far as what I should do as a property owner. Im half owner on property in upstate PA and am now starting to receive letters regarding permits for geophysical surveys being requested by one of the gas drillers in the Marcellus shale region. Im inclined not to approve this until I know if I should ask for a lease agreeement upfront. The letter states the potential for clearing trees, brush, etc to bring in wood gators and buggy drills to drill shot holes but also states they will claim resposibility for any damages. Theres no upfront compensation indicated. Im clueless on this so if any of you know the details on how this is properly handled from a landowners standpoint, please point me in the right direction. Most people I know that have signed lease agreements have acres of land, whereas Im sitting on just over an acre.

found this for you

http://www.mineralrightsforum.com/forum ... -conduct-a

[fordman]

that is some good information on that site.

[UNCLE BOO]

There definitely are many sides to this issue that you, as a "surface" land owner need to be aware of, flyboy71. I think the link that stephen44 provided gives you the best overall info.

Just so you know, I have worked in the Canadian oil and gas business for over 30 years, as a Surface Landman (please, no booing!) I have also done some work on the US side of the border for some companies I have worked for in the past. In Canada, the Mineral land ownership is usually separate from the Surface land ownership, and equal legal rights (and protections) are given to both "owners"under government laws. In the US, however, Mineral and Surface ownership can be combined under one Title (most benefit to the "owner"). However, in most cases, the Minerals are owned by someone other than the Surface owner, and the Mineral owner's rigts supercede the Surface owner's (most benefit to the Mineral owner).

The key point to consider in your case flyboy71 is that you are only being approached for consent to have a geological survey (often called a "seismic survey") conducted across your property. And, you also only have one acre of land affected. There would not be much up-front compensation in play for you, unfortunately. However, there is the possibility of a lot of "damages" to your property...especially if trees would have to be cut down to make way for the geological / seismic equipment. You just don't have a lot of land to work with in the first place, and a 50 foot (or whatever) swath of trees cleared may very well cause irreparable damage to your enjoyment of your property! If I were you, I would have the scope of the damages clearly set out before giving any consent to that company. The biggest hurdles I have faced in dealing with surface landowners (when I approach them for leases for wellsites, roads or pipeline easements) are the bad past experiences of those landowner with geological / seismic companies. (Also, keep in mind that the geological companies may be doing their activities on "speculation", and would sell the data gathered to actual oil and gas companies. In those cases, those geological companies have a lot less ethical qualms about how the surface owners are treated!)

In your situation, I agree with Ranchero50, that you should probably sit tight for the time being. If they REALLY need your agreement, they will come back to you. (I don't know whether or not your Title also covers the underlying Mineral rights....which would be the best case for you.) Books could be written to cover all of the intricacies of the Oil & Gas Industry!....way too much info to give here!

I hope this helps you make a decision.

[AJ Brooklyn]

You should watch the documentary "Gasland" its available on netflix and its all about the Marcellus shale situation.LOTS of really good info some of it is really disturbing.

[thrush544]

Flyboy71,
I think Uncle Boo gave you a lot of good advise from what I have seen. Both my sons work in that industry and I also was a oil field electrician and well operator of 91 wells in McKean County PA.

I know there are programs out there but you need to see who's behind the literature/program. The EPA was trying hard to shut down all the drilling and produced a couple of "scare" programs to scare people away.

That's not to say there are also some bad drilling companies out there who don't follow the rules. There are many good drilling companies also who do. For sure research and a lawyer will be needed before signing

Take to heart what Uncle Boo said about geological/seismic companies. Also, he sounds like a good person to ask when you have questions.

When all that is done, be sure to ask the Good Lord for guidance too.

Ed

[woods]

http://www.youtube.com/watch?v=U01EK76Sy4A

[Donnie]

Woods, watch" Water for Dimrock" on You Tube.........DON'T let them near your land.
Tioga county in northern Pa, where my friend lives is one hell of a mess...You need to see it to really understand what is going on...You're an intelligent man ...Do your research...
Others have mentioned "GASLAND" watch it.
Now they are seeking a permit to drill thousands of wells at the headwaters of the Delaware River, which supplies a lot of major cities drinking water...

[woods]

Seen them both. Only holes drilled on my land is for my well.

[Donnie]

Whoops replied to the wrong post.......

[basketcase0302]

Very scary stuff guys! Thanks for posting Woods. I watched a couple of other videos on the subject. I hunted in Florida on top of wells that have been drilled / capped / to be opened back up when needed / referred to as "war reserves" right in the national park. Really scary when you hear folks telling about the land "bleeding red".

[woods]

Yeah, I have learned to never underestimate what a company will do for a buck. It can be down right shocking.

[fuzzier1]

I live in the Four Corners area of NM. There are something like 25,000 natural gas wells in this area and my parents house that I grew up in sat on 40 acres of land that has 2 gas wells on it with 2 more just off of their land. We had three water wells on this land with NO issues what so ever when it comes to natural gas seeping into the water wells. One of the water wells is still used to this day. The other two could be used but nobody lives in the houses that were connected to them. Oh and by the way I work in water treatment and understand all aspects of it up to what it takes to produce and maintain ultrapure water for pharmaceutical and semiconductor grade water. So I would know if there were natural gas in the well water.

Over the years talking with the "Old Timers" from this area, they had stories of walking up and down the two main local rivers back in the 20-30s, before any gas well drilling, and seeing bubbles in the rivers that would burn when lit. In other words natural gas seeping up through the river naturally.

On the other hand I have also seen a couple of water wells in the area that when they fracked the gas well the hardness of the water well double over night. The gas company paid to have rural water ran to the houses. We also installed some degasifiers to remove natural gas from well water and no gas well within a half a mile of the water well.

As for mineral rights, my parents sold the land I grew up on back in 2005 but kept the mineral rights. One of the gas wells I spoke of above on their land was drilled after they sold and the current owner was compensated $50,000 for the just over an acre the gas company used for the well pad. My parents are paid royalties on all four wells but only get about $3,000/month. They are not the only lease holders. The wells do not produce large amounts of gas as some do in this area.

Overall I am behind the exploration and development of natural gas in this country but keep in mind Flyboy that a well pad can take up quite a bit of land, as I said above they used just over an acre on the last well drilled, and they don't necesarily have to ask. They generally (never heard of them not paying in this area) will pay the land owner but they can, in NM anyways, just drill on it. Hope this helps.

Fuzz

[woods]

There you have it. Totally safe.