Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on January 17, 2010 at 8:41

Dixie. If you did not prohibit surface use in your lease, you will know if your land will be used as a well site or access to one when the surveyor shows up to stake the road and well pad. Some companies may be proactive in working with you and giving you advance notice but it should be understood that such is not required by any state or local regulation. If you didn't address this specifically in your lease, the lessee or their operator has the right to enter your property and use the surface in their development activities without further notice or approval. An operator has no obligation to contact lessors when they apply for or receive a permit to drill.

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Permalink Reply by Dixie on January 17, 2010 at 9:25

Les,

I understand that they have the right to enter and use the property for their activities, as stated in the lease, and that things may be going on before any permit is posted on the DNR website. What I am concerned about is will they do the survey first and then is there some paperwork to be signed before they start site preparation or before they survey. In what order do all these things happen? What might be expected? I realize this may be an unusual question and my hubby would probably say I just want it to be too scripted (and he's probably right). What can I say, I like to know ahead of time approximately what may happen. Thank you for you input

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Permalink Reply by Skip Peel - Mineral Consultant on January 17, 2010 at 9:43

Dixie S2.

Les will probably be along later. LOL! No there is no paperwork for you to sign. You have already given the rights to surface use in the lease you signed. I advise my clients to specifically prohibit surface operations in their lease, unless the lessee cares to stipulate their plans for surface use and provide additional compensation for such. If you will consider allowing surface use, let the landman know that you wish to review and approve such on a case by case business. Surface use can have a significant value based on location.

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Permalink Reply by Dixie on January 17, 2010 at 11:06

Skip,

Sorry about the Les thing, my duh! Thanks for the information, there is so much to know and learn. This site and the people who have the knowledge and share that knowledge have been invaluable. Thank you again.

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Permalink Reply by Bobi Carr ("parker") on January 17, 2010 at 11:28

Dixie,

Unless you are relatively close to the unit boundary (probably the section line) you don't have much to worry about as far as them chosing your property as a site location.

I agree wholeheartedly with Skip, to those who haven't leased yet, reserve surface rights for future negotiations.

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Permalink Reply by Dixie on January 17, 2010 at 14:21

Why is being close to the unit boundary line so much more favorable for site location?

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Permalink Reply by Skip Peel - Mineral Consultant on January 17, 2010 at 14:31

Haynesville horizontal wellbores are normally oriented on a north-south axis and drilled from the edge of a unit (usually a section) or from the section adjoining to the south or north so that the operator gets the maximum length lateral within the unit. LA. Office of Conservation regulations prohibit wellbore perforations within 330' of a unit boundary. As a section is a mile square, 5280' minus 660' (330' on each end) equals an approximate maximum lateral wellbore of ~4,600'.

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Permalink Reply by Skip Peel - Mineral Consultant on January 17, 2010 at 14:58

This is an alternate unit well plat that gives a visual representation of how wells are oriented and spaced in section units.

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Permalink Reply by Dixie on January 17, 2010 at 16:02

Thanks for the picture and the reply, Skip.