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Permalink Reply by Skip Peel - Mineral Consultant on January 30, 2022 at 14:08

Insufficient information to offer an informed opinion.  Go see an experienced O&G attorney. 

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Permalink Reply by Iris on January 30, 2022 at 14:29

My question would be if so near a residential and business area would more wells or should more wells even be allowed?

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Permalink Reply by Dion Warr, CPL on February 11, 2022 at 15:49

Iris:

A couple of thoughts here:

Unless the surface owner is experiencing some sort of moral dilemma, the question as to whether additional wells should or could be placed upon a site is up to regulators.  The density of feasible surface well locations has increased with directional drilling accuracy and proficiency.

The footprint has not changed - compensation is then usually determined on a unit basis (well-by-well) with consideration based upon impact and length of term extended by the new well(s) and/or surface sites.  In short, if the agreement is based upon a term “for as long as wells located on the lands are producing”, a new well will extend the term of use.  That extension is worth something, as it prevents the surface owner from having any other use for some extended period of time.  That translates into value.

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