alternate unit well question
What is the purpose of creating an alternate unit well unit? Just wondering?
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Replies to This Discussion
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Permalink Reply by ur dern tootin' on
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The purpose of "creating" (drilling and producing) an alternate unit well is to provide more take points within a Conservation Unit, thus increasing the amount of gas produced from the Unit. The first well in a Conservation Unit is normally called the Unit Well, with subsequent wells called alternate unit wells. It is anticipated that each 640-acre Unit will have about 8 wells with about 10 take points (stages) in each well bore when fully developed. So on the average, each fully developed Unit will have approximately 80 take points producing natural gas, which revenue will be shared by all of the mineral owners within the Unit according to the terms of their lease.
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Permalink Reply by Les Bamburg on -
BJ, it is just an "alternate unit well". The unit is just created once.
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Permalink Reply by k .r. hunt on
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We got an application for a substitute unit well too.You only get paid on 1 well though, correct?
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Permalink Reply by TheCommish on
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The substitute unit well rule is also known as "the lawyer retirement act."
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Permalink Reply by k .r. hunt on
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please share more...not following
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Permalink Reply by TheCommish on
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That is correct. Unlike Texas, where you send notice to affected parties and if there is no objection, the approval is administrative. This includes "exceptional well locations" known as Rule 37 exceptions, as well as substandard acreage (Rule 38 exceptions). In Louisiana you must have a hearing for everything, objection or not, except the occasional "substitute" unit well, which can be approved administratively. Still requires the fees, however!
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Within a Conservation unit, the production from all wells drilled and completed in the unitized sand (interval/zone) will be shared by all of the mineral owners according to the terms of their lease.
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Permalink Reply by Skip Peel - Mineral Consultant on
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No time frame is mandated by the state. An operator will drill based on their own internal decision making process which will be significantly influenced by demand/nat gas price.
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Permalink Reply by JeffNParis on
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Skip,
Does the development of the Barnett shed any light on how the drilling of alternate wells plays out?
JnP
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Permalink Reply by Skip Peel - Mineral Consultant on
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JNP. Possibly. I haven't made an effort to study the Barnett, I just occasionally run across articles through my Internet alerts. I did read an interesting article concerning one operator that was drilling side-by-side horizontal laterals and then fracing them at the same time. This sounds like a question right up Les B.'s alley, hopefully he'll have some information.
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Permalink Reply by JeffNParis on
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Thanks Skip. I like that side-by-side plan!
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