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Permalink Reply by ur dern tootin' on January 8, 2010 at 17:39

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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Oil & Gas ProPermalink Reply by Les Bamburg on January 8, 2010 at 19:47

BJ, it is just an "alternate unit well". The unit is just created once.

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landownerPermalink Reply by BJ on January 9, 2010 at 10:44

Thanks for taking the time to explain.

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landownerPermalink Reply by k .r. hunt on January 11, 2010 at 9:20

We got an application for a substitute unit well too.You only get paid on 1 well though, correct?

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Oil & Gas ProPermalink Reply by TheCommish on January 11, 2010 at 9:38

The substitute unit well rule is also known as "the lawyer retirement act."

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landownerPermalink Reply by k .r. hunt on January 11, 2010 at 9:51

please share more...not following

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Oil & Gas ProPermalink Reply by TheCommish on January 12, 2010 at 6:09

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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Permalink Reply by ur dern tootin' on January 11, 2010 at 11:06

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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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on January 17, 2010 at 10:09

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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landownerPermalink Reply by JeffNParis on January 17, 2010 at 12:28

Skip,
Does the development of the Barnett shed any light on how the drilling of alternate wells plays out?
JnP

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on January 17, 2010 at 12:35

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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landownerPermalink Reply by JeffNParis on January 17, 2010 at 13:31

Thanks Skip. I like that side-by-side plan!

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