Ok, so my family and I recently completed the leasing process of approximately 55 acres in Washington county PA with Rice Energy. Wahooo!
Question 1: When I look at the unit map that I was able to obtain from the DEP, it seems as the track boundary is cutting our land out. Of course this map was made and approved a couple of months before our lease was finalized. Can the energy company simply add on additional acreage to production units? Or maybe I just don't know how to read the map properly (good possibility!)
Question 2: So it is common for most horizontal production pads to have anywhere of 4 to 8 wells in it. Say the unit has 8 wells, but only 2 pass through your particular area. Are royalties only paid for the wells that pass through your particular acreage location (seems most logical) or is it a flat calculation of number of well heads and acreage owned within the unit?
Question 3: I am presuming that well heads are not all "cranked" into production at the same time on a unit? Yes, no? What is the approximate time span from development to production of horizontal wells.
Question 4: What the hell does "spud" mean, LOL!!!
I searched for these answers, but didn't really find any definite answers!
Thank you in advance!
Alicia