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Permalink Reply by The_Baron on October 30, 2008 at 5:00

The well will have to flow back for several days after the frac. Once that is complete the well will be tested to see if it is commercially viable.

If so, the well will have to be connected to a pipeline gathering system if is not already. Once sales begin the title opinion and division order will have to be prepared. This can take months. No royalties will be distributed until the division order has been signed.

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Permalink Reply by The_Baron on October 30, 2008 at 6:53

You may find that many leases do not set a timeline, and without a signed division order the producer may withhold money from the royalties (for future taxes etc.)

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Permalink Reply by Thomas on October 30, 2008 at 15:34

Thanks for the info. You're right, I was told that some sort of pipeline system is already set up. Does the company notify lease holders of a Division Order? Should I wait for that, or go ahead and mail them in 2 to 4 weeks?

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Permalink Reply by Bobi Carr ("parker") on October 31, 2008 at 3:08

msfva,

I'm not Jim, but I can explain.

After the Title opinion is done, the opinion states who owns how much.

The division order is statement that you sign to agree to their conclusions.

That way, if they conclude you own 4.5 acres instead of 4.7 acres and you sign the division order, you have agreed to their conclusions.

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Permalink Reply by Grice on October 31, 2008 at 3:24

If you do not sign the order, I assume they will pay the royalties based from their conclusion. If their data is proven to be inaccurate, would the variance in royalties be retroactive? or would only future royalties be adjusted?

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Permalink Reply by The_Baron on November 3, 2008 at 8:12

Somtimes thte well will be fraced before a pipeline is in place. This is more common with wildcat wells far from an existing sales line as you want to know if the well will produce in sufficient quanities to pay for the well and pipeline.

I have also been involved in wells that don't produce gas of sufficient quality to be put into the nearest pipeline.

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Permalink Reply by Eat Beef on October 31, 2008 at 2:55

Thomas, I read what everyone has said, and it is good stuff. However, in my case, I didn't receive a check for over a year...And, when I did get my first check, it was some much less than I was expecting, that I called the company and said, this can't be right...and they said, oh yes it is. And, the checks got smaller each month, until now they are around $116.00 a month. And, I have many acres of minerals in the unit. They said the well was a disapointment to the company.

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Permalink Reply by Thomas on October 31, 2008 at 3:24

Sorry to hear that. I'm not expecting much from this lease either, because it was signed back in 2005 when the royalty agreements were lower than they are today. This lease was set to run out in December, at which time another company was going take over the land with a better lease on top of this one, unless the current company actually drilled a well. I will not complain, however, when my family does eventually get a check.

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Permalink Reply by Eat Beef on November 3, 2008 at 18:00

So, the current company drilled a well, and the other company never did get a chance to take over the lease. Is that what happened? It may be better this way. For one thing, they are getting better at getting the gas out of these well now, than they were a few years ago. Are they burning a flair, on the well at this time...Burning off gas. That would be a good sign. And the frac'ing can be quick and painless, or go on for days. Many time they keep working on these well, for months before they are finished with them. I'm sure the pipeline is already in place by now.
Good Luck!

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Permalink Reply by The_Baron on November 4, 2008 at 4:30

When they flow back it should be mostly nitrogen for the first day or so. As the nitrogen drops and the nat. gas% rises they will start the flare. If they havn't flared the well there may be little or no gas.

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Permalink Reply by The_Baron on November 4, 2008 at 4:36

As to the pipeline.

There wil be obvious distubances from where they brought in the pipeline, esp if its a wooded area. There should also be signs posted warning about a buried pipeline (WARNING do not dig, etc..)

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Permalink Reply by Henry, Landowner on November 4, 2008 at 11:00

Chesapeake drilled a well on S36-T15N-R15W with Trinidad #104 Rig. The second to last SCOUT INFO on SONRIS for this well was 10/21/2008: WAITING ON COMPLETION. The last SCOUT INFO was 10/29/2008. It reads PLUG BACK TD @ 16,358'; LOGGING.

Chesapeake started drilling a well on S31-T15N-R14W with Trinidad #104 Rig. The SCOUT INFO on SONRIS for this well on 10/21/2008 and on 10/29/2008 is DRILLING.

Since the Rig is no longer on S36 can completion be accomplished without a Rig?

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