Dusty, hopefully someone will check for me. I hear occasionally from a neighbor to the property that says they drilled one and drilled for several months. Then in late January moved about 1000 feet and set up again, so don’t t know what that might mean.
Kathleen,
If you haven't seen RRC's map of your area this may help. The boundary of Sec. 14, Blk 5 is in red and COG's Hollywood unit is outlined in green. The two drill sites are at the bottom of the section and the horizontal legs of the five wells will extend north. From what your friend said it sounds like COG drilled from one pad then moved over and has started drilling the second well from the other pad. They wouldn't do that if they didn't like what they saw on the first well.
Looks like you're getting there.
Mexico’s reliance on Texas natural gas depends on NAFTA. Much ado has been made about overseas exports of U.S. natural gas. Picture the images of giant carriers pulling out of seaside terminals along the Gulf Coast, destined for Latin America or Asia through the newly widened Panama Canal. But a quieter affair with neighboring Mexico, conducted via a growing network of subterranean pipelines, has had an even greater bearing on the U.S. energy export market. Four years after overhauling its energy policies, Mexico has come to rely ever more heavily on inexpensive and plentiful natural gas from West Texas as its own production plummets. It’s a serious relationship, and its future largely depends on the North American Free Trade Agreement, which makes it easier for Texas oil and gas producers to pipe their products across the border. Representatives from the U.S., Mexico and Canada met this week in Mexico City to renegotiate the longstanding agreement, which the Trump administration has criticized as unfair. “We have a lot at stake as NAFTA negotiations continue,” said Todd Staples, president of the Texas Oil and Gas Association, a trade group. More at Chron.com
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Trump is renegotiating NAFTA to get the USA a better deal....meaning MORE gas and LNG sales to Mexico....less trade deficit, more profit for
the USA.
in Verhalen
While looking at investor presentations of different operators in Reeves I came across this fantastic one from Apache. It's from earlier this week.
Glenda, on the Home page of this forum go down to the section marked "Videos" and watch the one titled "Texas Railroad Commission GIS Tutorial". It's a 12 minute YouTube video that will get you started on using RRC's mapping system which is what you are after.
If that doesn't do what you are needing come back here and I bet somebody will work on it with you.
Can anyone advise on the status of the Shadrach 68 Well #1H and Fiery Furnance wells in section 68 block 4? I have a hard time figuring out how to pull them up individual to see what is going on with them. I am also curious if these are always divided by 640 acres or does it depend on how the specific well is done with actual acreage?
Birol: U.S. to overtake Russia to become world’s No. 1 oil producer
Fatih Birol, executive director of the International Energy Agency, said Tuesday in Tokyo that the U.S. will overtake Russia as the world’s biggest oil producer by 2019. “Definitely next year,” he told Reuters, if not this year. “U.S. shale growth is very strong; the pace is very strong. The United States will become the No. 1 oil producer sometime very soon.” Birol said he does not see a decline in U.S. crude production in the next four or five years.
Reuters added, “U.S. oil is also increasingly being exported, including to the world’s biggest and fastest growing markets in Asia, eating away at OPEC and Russian market share. Meanwhile, U.S. net imports of crude oil fell last week by 1.6 million b/d to 4.98 million b/d, the lowest level since the EIA started recording the data in 2001, reflecting further erosion in a market OPEC has been relying on for decades.”
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So, Trump is doing exactly what he promised in his campaign for the
Presidency to do.....and the USA is being catapulted into the position of
the world's primary exporter of oil, natural gas refined energy products.
IF we don't kick off another global war, the USA will soon be able to pay
off its 20 Trillion dollar national debt and operate fiscally in the black.
That's what a businessman President does.
I have a vested interest in the development of oil and gas resources in
Reeves county as do most of you.
And Reeves county is at the forefront of that thrust to revamp the US
economy and pay our national debt.
If a company wants to put a water well for fracking on your land, do they normally offer you upfront money and if so, how much????
Thanks in advance
The water well will be small. However, the water belongs to the surface owner who should be paid per barrel. If you own both the surface and minerals, you should add a provision to your lease requiring compensation for use of water. In the old days, most leases allowed free use of water. However, relatively little water was used in drilling. A horizontal well uses massive water for frac and the water should not be free.
And don't let them drill to your existing water table. Require that they drill to another water table and when they are through using the well that they leave the casing in the ground and that the well becomes yours. YOu will nave to replace the surface equipment, but the well will be yours for free. And don't let them use the water for any wells that aren't on your land or lands that yours are pooled with.
When water sales cease (I recommend a term lease of 5 years with provision to renew the water lease agreement in 5 or 1 intervals after the initial term)
put in the contract that the well(s) revert to the surface land owner and all
electrical and pumping equipment be transferred to the surface owner's custody. As the surface land owner with the water rights, you don't HAVE to let them remove any of the well pumping equipment. That equipment can be stipulated in the lease contract to be part of the term
lease payments.
I prefer for the frack water well to be drilled into the Barilla aquifer/drinking water aquifer so when the contract is up, the surface owner has usable drinking water....versus drilling into the brackish water
of the Rustler aquifer which can only be made drinkable with an R.O. (reverse osmosis) unit, which is expensive to buy, operate, and maintain.
Charles, why not let them drill for water to be used on other land that is not yours? The company to drill on our land has their own company contract to pipe above ground to frac the well/wells.....just curious...
thanks for all the input from all of you. It truly helps and is appreciated.
Louise
You need a written water contract between you, as surface owner, and the water well operator / contractor, to specify the price and terms of water usage. Volumes should be measured and reported to you monthly, even if wells are not used. Is lessee paying for water usage both on and off lease? University Lands charges $0.35 per bbl for water usage for leases on University Lands; you can call and ask if they even allow water to be used for other wells, and if there is a price variance. Contract term should be limited to specified number of years and then renegotiated. Will price be set for the entire term or have escalation for inflation or set increase of pennies per bbl each year? Is there a minimum payment per year? Is the purchaser an oil compnay using water for its own operations or a commercial operator who is selling the water to third parties? If it is a reseller, you may want to have a price increase moving with the sales price - if prices charged go up 10%, then you get 10% increase. This is a specialty area.
Louise Welsh -
Excellent information and advice, as always, from Lawrence and from TennisDaze.
I had only been thinking of your future personal use of the proposed water well, an issue that is frequently addressed in Leases in West Texas.
The surface equipment that an Oil Company uses would not be compatible with ordinary, farm or ranching use. I don't think an O&G Company would be willing to leave you their commercial surface installation for you to use for future commercial sales of water. At a minimum: Too many liability issues.
I advise that you send a request to both Lawrence and TennisDaze to become "A Friend" on The Forum so that you can discuss your circumstances with them on a more personal level.
Click on each of theirs' names where the appear in BLUE in their responses.
Everybody on The Forum loves and respects Lawrence and we all learn more and more and more from his responses and comments. He is truly a gift to us all.
TennisDaze, however, appears to me to be extremely knowledgeable about many things in the area of O&G, including contracts such as the one you have under consideration.
I highly suspect that she is a very experienced Oil and Gas Attorney, but is reticent about revealing that much about herself on such an open website.
That is certainly within her rights.
My advise is, either way, that perhaps you could ask her to help you in your negotiations.
Best I can do for you -
Glenda G. Salley-Natriello
I looked back at that tutorial I recommended and realized it was made before RRC revised their map system. There are a couple of short tutorials on RRC's website but it looks like the best tool may be their users guide http://wwwgisp.rrc.texas.gov/GISViewer2/GISViewer/docs/userguide.pdf
My fullest appreciation to all that has responded to my questions, Ole Lawrence, TennisDaze and Charles and others. I surely do appreciate all the information you all have given me. I am so very hesitant about the leasing, just frightened.
Also, should I contact the company that has the lease on the land for drilling of oil and gas? Could there be a problem with where the water wells are place in regards to where the oil wells to be placed?
Thank you all for your help.
Louise
Dusty, I tried my best to use the link you gave me. It’s just too complicated for me. Our property is in CO Abst 3697 Twsp Bk56 Sect 36 QQ NW and 36; also Abst 3699 30,30,30. All I can determine from the map is it’s in 8 (whatever that refers to)
Also two wells have been drilled in the Phantom Wolfcamp : #410BH and #49AH. A PERMIT WAS ISSUED in January or February FOR 1/12 HORIZONTAL. Can you tell me anything from this info?
Glenda, below is RRC's map of your area with Sec. 30 & 36 outlined in red. Apache calls Sec. 30 the Lee lease and 36 the Grant lease.
I think those wells you asked about are Apache Grant #410BH and #409AH (not 49). RRC approved both those permits on 1/12/18 but so far Apache hasn't reported a spud date or filed completion reports with RRC for those two wells or any of the other 15 that Apache has gotten permits for on those two leases. Permits for some of those other wells were approved last August so it's possible some have been drilled but nothing has been filed yet.
Hope this helps.
You are a wealth of information, Dusty! Thanks for the footwork.