Bore hole servitude agreement
I have had a request from Swepi LP represented by Audobon Oil and Gas to pass a part of the well bore on a new well onto my property. They put the well site 330 ft from my section line and drill a "bowed" well bore that goes some 100-200 ft. into the next section and then back onto the section the rig is located on until they reach the desired production depth. The "bow" in the well bore will be at approx. 6k on my land. They have offered me $500.00 for the priviledge of their intrusion into my land with this well bore. The reason for this is that they can maximize their production zone. Anybody got any advice on this? Thanks
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Replies to This Discussion
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Permalink Reply by Ray Dyess on
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they don't want to lease all my land, just a space 200' x 100' at 6000 ft below the surface. And they want to pay for it once...this will be a non-recurring income for me. thanks
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Permalink Reply by Two Dogs, Pirate on -
What formation are they drilling at 6000 feet? Where are you located?
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Permalink Reply by Ray Dyess on
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Two Dogs: I am located halfway between Belmont and Marthaville on Hwy. 120...section 36. They intend to drill in section 26 which is due north of me. And I don't understand, since I am an integral part of the proposed well, why I shouldn't share in the royalties of this well on a per capita basis. They should have to lease that part of my land they intend to use and then pay me royalties just like they pay anyone in section 26. After all...I am participating in the drilling of the well, and part of that well is on (or in) my land. They keep telling me it is only a servitude, like a pipeline ROW. But this is no ROW, this is a well!
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Permalink Reply by P.G. on
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Sounds like even though the well runs across (underneath) your property, they won't be mining your gas from it so how could you claim royalties from someone else's gas? They will just be using your property to carry the other folk's gas to market. Like I said earlier, lease that servitude annually rather than outright selling it if you can...
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Permalink Reply by Two Dogs, Pirate on
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Ray you must be down at the end of Lilly Road where the corners of Sections 36, 25, 26 and 35 come together. They will probably drill into all four sections from the same location. Does someone have an Oil, Gas & Mineral Lease on your property? If so the language of the lease will govern what they can and can't do. The first perforations of the horizontal bore will be 330 feet from the section line. At this distance the state has determined that only the section with the perfs would be unitized. The last perfs would be 330 feet South of the North section line of Section 26. They will probably drill a well into Section 36 from their location and you will receive royalties from that well, if you are under lease. If you are not under lease then they have no right to come onto your property without your consent.
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Permalink Reply by HBP on
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the lease will not govern what they can and can't do outside of the unit they are drilling for a "subsurface" right that is not exploratory but simply a bore hole. But you are correct to say that it requires his consent.
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Permalink Reply by Mac Davis on
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Section 26 is due north of section 35, not 36. The arrangement is:
26 25
35 36
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Permalink Reply by Ron Jon on
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Ray:
Has it been drilled or this is what they are proposing?
You aren't kin to Turner Dyess of Mississippi are you?
RB
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Permalink Reply by Ray Dyess on
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No...it has not been drilled. They are proposing to drill in the next section, but bow the drill hole over on our section so they can be totally horizontal for the entire section where the rig is located. The drill will encounter my section at about 6k ft. and they only want to use a space 200' by 100', and that at 6,000 ft. I just don't know what the ramifications of that will be if I ever get a chance to lease my land...or if there will be any ramifications at all.
Yes, I am related to all who spell their name Dyess. Distant kin, but kin. I do not know Turner Dyess.
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Permalink Reply by FXEF on
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Ray,
They will not be draining gas from your land. The well bore servitude agreement just releases them from any subsurface trespass liability. I'm not a lawyer, but I don't think it will have any bearing on future O&G leases.
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Permalink Reply by Bob Ballard on
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Ray, $500.00 Is not worth taking the risk that a future O&G lease will be affected. From what I've read, the drilling in other sections are all completed within the assigned vertical boundaries. If Swepi LP wishes to encroach on your subsurface property ( and you take this unknown risk), let them compensate you appropriately. When compared with 25+ years production perhaps, $500.00 is not sufficient.. You know, 100' x 200' doesn't seem like much, but it's close to 1/2 acre.
What is the S-T-R of the proposed well?
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