Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on January 14, 2015 at 11:48

A substitute unit well?  Or an alternate unit well?

Permalink Reply by ken lunsford on January 14, 2015 at 7:45

Thank you. I'm assuming that my lease deal with DSCC#1 won't be affected by this "substitution" classification... is that correct?

Permalink Reply by DTrucks on January 14, 2015 at 7:47

Likely correct...

Permalink Reply by ken lunsford on January 14, 2015 at 14:35

"A substitute unit well"

Permalink Reply by DTrucks on January 14, 2015 at 15:29

Thanks Skip,

  Wanted to edit the post, but it's been hours; locked.
Seems that Dion would have been most familiar here. 
Seems that other leases may be involved, plus I don't
know if Davidson signed the same lease as Buckles
(non-Pugh). 

This Letter seeks to designate DSCC#1 as substitute for SUH.
Last week's letter sought approval of DSCC#1 as SUH substitute
& mentioned "because DSCC#1 does not meet the 50ft tolerance
approved for location of the substitute well by Order No 1084-a-4."

Permalink Reply by Skip Peel - Mineral Consultant on January 14, 2015 at 15:34

There you go.  Thanks, DT.

Permalink Reply by ken lunsford on January 15, 2015 at 5:26

Skip,I'm not able to see your response to DT concerning the difference between an alternate and substitute unit well. Especially as in how/if it effects the lease holders of either well.

Permalink Reply by Skip Peel - Mineral Consultant on January 15, 2015 at 5:43

I didn't post one as DT explained that the well was a substitute.  As mentioned in his reply the original unit well does not meet the location requirements for the Field Order.  As drilling in certain formations transitions from vertical wells to horizontal wells the set backs and surface locations will change.  Existing wells may not meet the new requirements.  Thus a "substitute" unit well.  Alternate unit wells are infill wells drilled in the same unit and the same formation.  The state sets minimum acreage for alternate unit wells so operators must submit an application showing where the wells are placed in the unit and how they conform to required setbacks from each other and from the unit boundary.

Permalink Reply by ken lunsford on January 15, 2015 at 6:10

I want to thank both of you [Skip and DT] for the information but it's obvious that i need to go do alot of homework so that i can understand what you've shared with me and determine if/how any of it affects me as a local landowner.

Thanks again

Permalink Reply by Skip Peel - Mineral Consultant on January 15, 2015 at 6:42

Here is a good place to start.

http://www.gohaynesvilleshale.com/mineral-owner-rights-101

Permalink Reply by DellP on January 15, 2015 at 11:17

PS:

Ken, You're generally paid only for the well(s) within your square mile (SUH, DSCC#1), unless your property includes more than one plat. See this pdf page three for a general map of the SUH mile area, and keep in mind that the old original well is marked as "CURRENT", and is dry and plugged. 

Permalink Reply by ken lunsford on January 16, 2015 at 10:35

Thanks DellP

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