Gas leases and fracking questions

[sweep]

Well my area is starting to be drilled for gas wells and all the brokers and gas co's are sending out lease arrangments. So far anything from $2000 to $3500 per acre plus royalties.

We do plan on having a lawyer go through the doc's before we sign.

Our big concern is losing our well water-we have no other water-we live out in the boonies.. In a neighboring state, many people have had their wells contaiminated with chemicals from the fracking process and the gas co's put in water buffaloes in their yards and drop of water to them every week.

I just hope somone is watching out for us little guys. My neighbor just got a check for $1.2 million but I hope we don't all regret this 10-15 years from now. Seems like everything is happening so fast and the money is flying and people maybe letting down their guard.

Can anyone give me some things I should watch out for?? I do not want a pumping well on my property.

 

[tommu56]

Well my area is starting to be drilled for gas wells and all the brokers and gas co's are sending out lease arrangments. So far anything from $2000 to $3500 per acre plus royalties.

We do plan on having a lawyer go through the doc's before we sign.

Our big concern is losing our well water-we have no other water-we live out in the boonies.. In a neighboring state, many people have had their wells contaiminated with chemicals from the fracking process and the gas co's put in water buffaloes in their yards and drop of water to them every week.

I just hope somone is watching out for us little guys. My neighbor just got a check for $1.2 million but I hope we don't all regret this 10-15 years from now. Seems like everything is happening so fast and the money is flying and people maybe letting down their guard.

Can anyone give me some things I should watch out for?? I do not want a pumping well on my property.

The fracking polluting stuff is just hype I am not saying none haven't failed but they are few and far between.
The gasland movie was all a movie biases by the anti's.
I have property up state pa and some of the water wells you could light the gas coming off 20 years ago before all the mass hysteria started

go to this site to get informed

Natural Gas Forum for Landowners - Index

tom

 

[forgeblast]

its all about what is added into your gas lease. The lawyer who has handled gas leases before will be worth his weight in gold.

 

[tcartwri]

More likely the wells are contaminated by the drillers.

 

[sweep]

The fracking polluting stuff is just hype I am not saying none haven't failed but they are few and far between.

The wells that were polluted near me in W.Va were from the chemicals the gas companies pump into the ground during the fracking process. It was not methane.

 

[IndyIan]

The wells that were polluted near me in W.Va were from the chemicals the gas companies pump into the ground during the fracking process. It was not methane.

If you're going to be surrounded by fracking maybe the smart play is just to sell the property to them and move on to an area with no prospects for fracking in the future?
I like my house and land but I think I'd rather just take a $1,000,000 and move somewhere else instead of living in the middle of a gas field...

 

[charlz]

No doubt issues with fracking and contamination are greatly influenced by the local geology and techniques used.

As already noted a lawyer familiar with the process would be a great asset. Another thing to think about is if the value of the contract offsets any 'worst case' scenario... where your well does get contaminated and you have to install and operate some type of filtration, reverse osmosis, etc. system, potentially forever, in order to use your well. Of course the worst case could happen if your neighbor lets them drill/frack and they are on the same aquifer as you.

 

[tommu56]

The wells that were polluted near me in W.Va were from the chemicals the gas companies pump into the ground during the fracking process. It was not methane.

Im not saying there hasn't been a leak but the company's (Range Anadarko) working around me up state have been pretty proactive testing wells working with the people and their leases they don't want any problems because it will affect their bottom line
For me my little piece of property compared to the thousands of acre's owned by the state around me that will be drilled I made the best deal for me and that is the only way to look at it in my opinion.

 

[two_bit_score]

More likely the wells are contaminated by the drillers.

No. Not more likely, as in more likely they are contaminated than not contaminated. Scare tactics don't help him.

 

[two_bit_score]

Well my area is starting to be drilled for gas wells and all the brokers and gas co's are sending out lease arrangments. So far anything from $2000 to $3500 per acre plus royalties.

We do plan on having a lawyer go through the doc's before we sign.

I just hope somone is watching out for us little guys. My neighbor just got a check for $1.2 million but I hope we don't all regret this 10-15 years from now. Seems like everything is happening so fast and the money is flying and people maybe letting down their guard.

Can anyone give me some things I should watch out for?? I do not want a pumping well on my property.

Just a few things to think about. I don't know how much land you have or the setting. There is a big difference in small tracts and large tracts and very isolated locations vs locations in town or close to town. I'll try to keep this general enough but still helpful. I have some personal experience as we have interests in the haynesville play as well as the eagle ford play in Texas.

Get educated on what has already occurred and what has been signed by your neighbors. If several of you will stick together you will have a better chance if getting better terms and a better bonus.

Be very careful about signing the lease the co. offers you. Even with addendums. There is a big difference in conditions and covenants in contracts.

Your family lawyer will be of little to no help unless he is an expert oil and gas lawyer. It's complicated.

If you have a small tract you won't get as many concessions as you will with a large tract.

You won't get everything you ask for.

It doesn't hurt to ask.

I don't know the law in Ohio but in Texas the mineral estate is superior to the surface estate. Find out the law in your state on this as it will be important to you. especially if you only own a fraction of the minerals under your property. Find out f there us any recovery if the minerals were severed but no production took place. In La. Minerals revert to the landowner if no production commenced within ten years. You need to know the law in Ohio about this.

There are probably some landowner associations in your area where you can network with other landowners. Find them.

Take your time. Be sure. Know the law and facts and what other people are doing.

The first tract I negotiated went for 30 times the originally offered per acre bonus over about seven months from time of first contact to when the lease was signed. The terms for royalty, costs and surface use were significantly improved.

These may or may not help but I'm going to put them up anyway as they might lead you to something local you can use plus it might help someone in Texas that reads this.
Oilandgaslawyrblog.com

Texas land and mineral owners Assoc. Tlma

 

[two_bit_score]

The other thing is find out for sure what minerals you actually own. I've seen people spend months working out a lead deal and when it came time to do the lease the company did the preliminary title search and they found out the landowner only had a fractional interest. You need to make sure what your interest is before it comes down to it.

Also, there is a pretty good section on allexperts.com that deals wit mineral lease issues where you can ask specific questions. You should check it out.

 

[two_bit_score]

One more thing and then I will shut up.

With small ac, around ten ac. Or so. You should get your well tested now, just to gave a base line for future reference.

There will probably not be a problem with your well but you will wish you had it tested now if there is a problem later.

With ten ac or less it's very unlikely you will be faced with a gas well on your property. If you were you would be lucky because the surface damages they would likely pay you would give you enough money to get more than you have now no matter how nice it is.

A gas well pad site likely will take from five to ten ac. They can be pushed down to two but they will always want to take as much as possible. But they usually pay well.

 

[tommu56]

O
A gas well pad site likely will take from five to ten ac. They can be pushed down to two but they will always want to take as much as possible. But they usually pay well.

With the horizontals they can run 3,000 ft (rumors say they have gone to 7,000) out from the pad so they can drill under you frack you and take the gas from a half mile away.

The horizontal drilling is to minimize the surface disturbances.
Think of a grid one mile square with the pads on the crosses as opposed to one's for oil every 300 ft like I've seen in Texas.

 

[two_bit_score]

With the horizontals they can run 3,000 ft (rumors say they have gone to 7,000) out from the pad so they can drill under you frack you and take the gas from a half mile away.

The horizontal drilling is to minimize the surface disturbances.
Think of a grid one mile square with the pads on the crosses as opposed to one's for oil every 300 ft like I've seen in Texas.

There are several ways they do it. Sometimes they put multiple horizontal wells out from one pad - maybe as many as four. I have seen several with two horizontals.

A horizontal gas pad is huge even for one horizontal well. I have an acquaintance in south Texas who specializes in working for landowners to work with the gas companies to minimize the foot print of the well pads after drilling opertains are completed but it cost money to reclaim and a lot of landowners don't know what can be done and the companies usually don't do it unless they are 'persuaded'.

It's not unusual for horizontals to go 15,000 plus feet total.

Horizontal drilling has nothing to do with minimizing surface disturbances. It's the way gas is recovered in unconventional formations like shale.

 

[SPIKER]

There are several land owner associations that are joining land together and negotiating better value and rights to property owners. I have several in north central ohio myself in the Jeromesville area. Looking at OFBF on the county farm bureau meetings as well. I'm considering joining the Mohican area land owners association. also there is the kill-buck vally landowners association & one other organization that you can look ingo. I think the Mohican one is open yet. the other two are closing membership but can open if / when they sell options for reserve or standby members that are wanting in after the closing date.

see some here

http://licking.osu.edu/topics/agric...nusual Ohio Oil and Gase Lease Provisions.pdf

look up Central Ohio Landowners Association (COLA). currently closed but have something like 80,000 acres that are negotiating with gas company now.

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Ohio Landowners - Go Marcellus Shale


Landowners and Leasing for Oil and Gas in Ohio - Ohio DNR Division of Mineral Resources Management


The-Daily-Record.com - Mohican Basin Landowners Association expanding in members and territory

Newly formed group to educate landowners


Sept 7th there is a meeting in Richland county at the "RIchland co. LONGVIEW CENTER 7pm) I will be attending if I remember lol...


Mark

 

[Egon]

I have property up state pa and some of the water wells you could light the gas coming off 20 years ago before all the mass hysteria start

Lots of "air" in water wells with no hydrocarbon activity around. Just depends on the geology of the area.:thumbsup:

 

[aczlan]

One more thing and then I will shut up.
With small ac, around ten ac. Or so. You should get your well tested now, just to gave a base line for future reference.

Very important advice if you are worried about your water.
You do a test, they do a test (before signing, yours goes to a lab of your choice, theirs goes to a lab of their choice), if the tests agree, it is added to the contract that the well was in condition W on date X before the start of work and it is to remain in said condition or they are obliged to perform Y remedial action or pay Z in damages.

Aaron Z

 

[tommu56]

There are several ways they do it. Sometimes they put multiple horizontal wells out from one pad - maybe as many as four. I have seen several with two horizontals.

A horizontal gas pad is huge even for one horizontal well. I have an acquaintance in south Texas who specializes in working for landowners to work with the gas companies to minimize the foot print of the well pads after drilling opertains are completed but it cost money to reclaim and a lot of landowners don't know what can be done and the companies usually don't do it unless they are 'persuaded'.

It's not unusual for horizontals to go 15,000 plus feet total.

Horizontal drilling has nothing to do with minimizing surface disturbances. It's the way gas is recovered in unconventional formations like shale.

On most pads up here there is 6 wells to start.
I have seen 4 to 8 but some documents on line say there are up to 12

 

[forgeblast]

Lots of wells up here were we are.
One thing to remember is to save 40% of what they pay you for taxes that way you dont owe a huge amount.

 

[two_bit_score]

Lots of wells up here were we are.
One thing to remember is to save 40% of what they pay you for taxes that way you dont owe a huge amount.

If the current regime in Washington really wanted to do something to help the economy they would make mineral lease signing bonuses taxable at a flat 10%.