Replies to This Discussion

Permalink Reply by herefordsnshale on March 11, 2009 at 12:46

I want to say it's 200 or 250 feet, not much. Pipelines are what seems really scary to me. I've seen them laid within 75 feet of people's back doors.

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Permalink Reply by Jay Murrell on March 11, 2009 at 13:32

There's no rule for distance from wells to structures not yet built.. The current rule is 500' from any existing structure for wells deeper than 10,000'. A waiver may be obtained from the effected parties and the Office of Conservation will grant a permit for wells closer than the minimum distance prescribed.

IMHO, properly operated producing gas wells can be situated and equipped so as to have minimal impact on the quality of life of "its" neighbors.

I suggest that you have an attorney draft surface use provisions which satisfy your concerns.

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Permalink Reply by sesport on March 11, 2009 at 16:03

JM - A question just occurred to me re. no rule for structures not yet built ... would that include properties already platted, maybe even permitted, but not yet built? Many subdivisions are still under development ( Norris Ferry Landing, Providence come to mind). Which rule applies ... no distance or 500' distance?

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Permalink Reply by Jay Murrell on March 11, 2009 at 16:04

Ses:

The structure has to be there for the rule to apply.

Jay

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Permalink Reply by RealBig on March 11, 2009 at 16:20

Thanks for all of the help. The property is just outside of the city on a major thoroughfare, so only state and parish rules apply. However, I purchased the property for development and I don't want to destroy that value.

From the previous responses I realize that there are really two issues:

1. Drilling, during which it would be impossible to build any other building within 500 feet.

2. Production, when you could have buildings considerably closer if you took the proper safety precautions.

Frankly, I believe that I'm more concerned about production, because that will last for years. I can wait a year or two for them drill, because I've really been lucky on this deal.

So, what would the rules be for a producing well and does anyone know any special precautions I should take before developing property around a producing well.

I do have an attorney of course and he's doing a good job, but I want to make sure that I understand all of the opportunities and challenges on this deal.

Thanks!

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Permalink Reply by Jay Murrell on March 11, 2009 at 16:30

Real:

Does you lease make provisions surface production facilities?

If not, you just need to have good communication with the operator and let them know how you would like to see things done. It would really help if you had a development plan.

Jay

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Permalink Reply by RealBig on March 11, 2009 at 16:40

Thanks Jay,

I had a development plan that is going to have to be changed. Normally, that would be a mess, but in this case it's a good mess. I really don't want to send it back to my architect, because it will cost a fortune and waste a lot of time. I want to get this deal done, but I don't want to have problems that dog me for years.

As crazy as it sounds I had a friend at one of the oil companies tell me they will drill within 150 feet of inhabitied dwellings if they are owned by the lessor. I didn't ask him to clarify, but I think he meant within 150 feet of the edge of the pad. Still, that seems way to close during drilling.

During production I guess they just need maybe a half acre or so and access to the well.

RB

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Permalink Reply by Jay Murrell on March 12, 2009 at 1:12

RB:

If a well is shallower than 10,000' you can be closer than 500', I forget it distance, think it may be 250'.

Anyway, the distance rule applies to all surface structures, whether ot not they are the Lessor's.

Good Luck,

Jay

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Permalink Reply by RealBig on March 11, 2009 at 17:06

You are right my Scotish friend. I see that. Actually, I wouldn't dream of starting develpment until they have finished drilling for a whole host of reasons. I didn't really explain that clearly. Heck, I'm not even sure I fully realized it until I started this series of messages. However, now I realize that it is really the long range issues that are critical.


Thanks!

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