Replies to This Discussion

Permalink Reply by intrepid on January 7, 2009 at 3:47

Sounds like a winner. Now we just need to get the Detroit 3 to start producing CNG cars and trucks and doing the same promotion.

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Permalink Reply by The_Baron on January 7, 2009 at 4:06

YOur not going to pay $0.50/gallon. You will pay a higher inflated price at home because you are not provided gas at the wellhead price,but at the residential rate. Last month my gas company (centerpoint) charged me $10.39/mcf. Boone stated that one mcf = aprox. 8 gallons of gasoline. If this conversion holds true, that equates to about $1.30/gallon. Not enough savings for me top drop an extra six to ten thousand dollars on a cng car. (msrp on a standard EX civic is $20,105 compared to $25,190 for the GX without the home fueling station).

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Permalink Reply by The_Baron on January 7, 2009 at 4:34

Not free Nat. Gas, but you can have your share of the production. You'll have to build your own faciliites though, and you may have a hard time trying to handle the millions of cubic feet unless you happen to have a storage facility or access to a sales line (or just let the operator sell your unused gas, which they would probally charge youy for the extra work and bookkeeping). Also, the gas may need to be treated (for H2S, moisture, etc.) or have a low btu level because of excess N2 or CO2. Better off taking a royalty check to the bank.

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Permalink Reply by The_Baron on January 7, 2009 at 5:40

YOu will still be siphoning off gas from your share. As the leased mineral owner you have only a right to your gas. My statement still stands about the quality of the gas. Not all nat. gas is created equal. Also, the pressure could be an issue. Home gas lines are at a fairly low pressure (4-7 psi)

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Permalink Reply by The_Baron on January 7, 2009 at 5:42

Of course the mainline at the street is much higher pressure, but I don't know what it would be.

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Permalink Reply by Two Dogs, Pirate on January 7, 2009 at 5:43

Hey Baron could you imagine what you could do at a hog roast with a 16,000 psi flame thrower.

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Permalink Reply by insomniacnla on January 7, 2009 at 7:37

Graysands,

I know what you are talking about but I don't think that any companies do that any longer. As part of his deal, a neighbor of mine had a gas line run to their home from the well on their property. It was 30 or 35 years ago that it was done, maybe even longer. About 15 years ago, the well dried up and they had to make other arrangements to heat their home.

I asked a landman with JPD Energy about it a few years ago and was told that o/g companies no longer will agree to it because of liability issues.

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Permalink Reply by WVLandOwner on January 7, 2009 at 8:29

What you are saying is true. I live on land purchased by my grandparents in 1969. Cabot gas drilled a well on the land around 1978. We are still getting free gas from the well. Here in West Virginia that is pretty command. Although I understand the practice has now stopped.

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Permalink Reply by KAYBABY on January 8, 2009 at 10:54

Where are you from? My brother in law was originally from Paden City on the Ohio River.

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Permalink Reply by WVLandOwner on January 8, 2009 at 16:20

I am from Clay County. Just east of Charleston and near the center of the state.

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Permalink Reply by intrepid on January 9, 2009 at 4:41

I understand that Cabot was involved in some extensive litigation with landowners in that area a few years back. were you involved?

Permalink Reply by intrepid on January 7, 2009 at 10:47

Some time back, they used to allow the landowner/mineral owner a "farm tap" for gas. This practice has been discontinued as I understand it.

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