We recently had a lease with Chesapeake in Lasalle county Texas. Our neighbor to the West
had the platform on his land . He was going to use 200 acres, we only have 108 acres. Drilling was to start 1 week ago. Just before he backed out and instructed Chesapeake he wanted to go further into his land and not onto our. They began 6 days ago drilling.
First is this even legal . The permit had been for both properties and was approved that way
Second, Can Chesapeake use our property with a seperate platform, is 108 acres enough. Can it produce enough for it to be profitable. There are platforms on my other neighbors property also. Would they just ignore us. Our lease is up in 2 weeks with Chespeake.
Tony,
The drilling and completion of the well is totally up to Chesapeake. They must comply with the conditions of the permit granted. Once the well is drilled and tested, they may request a modification of the permit through a completion permit and notification. Neither you or your neighbor can dictate permit conditions to the permittee.
It is the operator's money being put at risk so they can spend it anyway they want as long as they abide by the rules and laws. They will do what is best for Chesapeake and hopefully that will be best for you as well. Get a copy of the permit and maps for their intent. Also, check your lease for the lessee's rights after the primary term. I will guess that the primary term of the lease has been automatically extended while they drill and complete the well that includes your acreage in the permit.
Gary
Thank you for clearing up my problem. Do you think Chesapeake will still be interested in our land even though it is only 100 acres. Originally they were going to build platform on my neighbors property and drill from west to east going thru his acres and ending with ours. Now they are starting with his and when it comes to ours they are taking a slight 45 degree turn and then going onto his 100 acres that lie to the south of ours. Could there intention possibly been that and just signed us up to avoid other companies coming to us? Will the new route they took affect any possible future for our land.
Thank You Tony