3D Survey

I just got a call from Comstock wanting permission to do a 3D survey. They will pay 25 bucks an acre. Does anyone have any information about this. I have 75 acres near Noble. Any help will be appreciated.
Thanks, Dan

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Permalink Reply by BirdDawg, plain ole' idiot on September 17, 2009 at 15:37
Dan,
From what I have heard, $25/acre is a very good price for siesmic. Like Electro said, a damage clause is the most important factor.
Permalink Reply by Dan Aaron on September 17, 2009 at 15:45
Thanks Bird Dog. I leased in March of 08 for $175 per acre before I found out what was going on. I THOUGHT i GOT SCREWED, but sounds like a blessing instead. This lady said there was no way the company would drill because it takes almost a year to get permitted. Looks like I may have the right to lease again.
Permalink Reply by Allen D, Beckham on September 17, 2009 at 17:20
In addition to the damage clause, set a time limit, 18 months to two years max, and payment due upon receipt of contract by Comstock. Worked for me after reading this advice on this site. Seitel Data (CHK) had no problem with this and paid within 10 days. The $25 sounds standard.
Permalink Reply by Mac Davis on September 17, 2009 at 19:05
To my thinking, it's not worth the potential problems for $25 an acre. However, if it's empty land/timber land, etc., the fact that it's 75 is a little more attractive.

However, if it gets surveyed, you have a higher probability of getting drilled. You may want to do it just so your unit gets drilled.

Consider whether you want to get drilled. Denying the survey may make it more likely the lease will expire. You might be better off if the existing lease expires, or if the unit gets drilled later in this lease when/if natgas prices get drilled. You are gambling that it doesn't get drilled at all.

Be careful, your lease may specify that only the lessee can do seismography. Be sure the seismography agreement doesn't require you to defend the agreement.
Permalink Reply by Dan Aaron on September 18, 2009 at 3:19
My thoughts exactly. I am going to ask for a $100 an acre. The lady with Comstock said that not to worry they are not going to drill because of the time left on the lease. She said it takes almost a year just to get permitted. Then along with the other things thay have to do?????. I am meeting with her a 1PM todaY. i WILL ADVISE THE GROUP.
Permalink Reply by Mac Davis on September 18, 2009 at 8:07
Is Comstock the lessee or the driller for your unit?

The assurance that they're not going to drill doesn't mean much, even if Comstock is the one who would be drilling.

If it's a 3 year lease, they'd still have until 2011 to start. I think they don't have to produce, they just have to "start," which can mean a lot.
Permalink Reply by Dion Warr, CPL on September 24, 2009 at 15:52
Jay:

I would agree with you. $25 is more or less a standard rate for seismic. Also, Dan, with less than 100 acres, the seismic companies should be able to resolve for the adjoining tracts by just 'shooting around you', and would be less apt to entertain anything other than standard terms. With a 640 acre spacing and a more or less uniform underlying strata, the seismic companies can figure out more or less what there is beneath you by what is around you. They'll (probably) 'black your acreage out' of the survey, but it shouldn't be enough to scare any potential third-party licensees. Take the money with a timeline to shoot, with some advance notice, access, and good damage and restoration provisions, and let them be on their way.
Permalink Reply by Mark on September 18, 2009 at 10:21
The siesmic crew will drill 3" dia holes @ 100' deep along a line every couple hundred feet or so. They survey co. should have a map of the section that they are wanting to survey. There will be little damage for the equipment to go through. In my case, all they ran on my property was cables and geophones which was no big deal. My son liked watching the helicopter hovering above the trees. This happens in very remote areas though. The holes were drilled 1/4 mile away. They are not allowed to drill the 3" holes within 100' of a dwelling or permanent structure. The holes are for the charges.
Permalink Reply by ken hatcher on September 24, 2009 at 8:31
If they have a clause that say's they have first right of refusal which you have to let them offer...is this o.k. ?
Permalink Reply by RBH on September 24, 2009 at 15:58
IS THE LAND LEASED YET? IS THERE ANY COMMITMENT TO LEASE INCLUDED WITH THE SEISMIC OPTION
Permalink Reply by ken hatcher on September 24, 2009 at 16:25
rbh, i found out after i posted this that for 18 month's after the contract if you get a offer you have to give comstock a chance to compete. If they cannot your free but if the 3-d shoot is good they will be highly competitive. They are not looking for leased property.
Permalink Reply by LB on September 26, 2009 at 13:35
My father was contacted by Comstock about doing a survey on his property. He was told $25 p/a was standard. By completing a survey, does this make someone's property more likely to be drilled on?

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