We have a lease in Weld County, Colorado that covers two wells in Section 2, T7N, R64W, 6th P.M. that are not producing at the moment. At least that is what I am getting from the COGCC web site. However there is a producing well that is within 187 feet of ours. I used one of the tools on the COGCC map site to measure the distance so I hope it is fairly accurate.
Our old non producing well in section 2 is 05-123-12307 (Anderson FA 24-2-7-64) and the Noble well is 05-123-31495 (McKay AB 02-14) The production thus far in 2011 is 32,925 bbls sold.
My question is simply this: Can a producing well that close not be realistically sipping our milkshake through someone else's straw?
It can be. Have you taken up the subject with the operator of your wells?
Hello rw kennedy, I have not contacted St. James Energy yet, most likely tomorrow. Our shared well is shown on the Noble Well Location Certificate with a notation that it is plugged and abandoned. We signed a lease with Apollo in 2008. The Noble well was drilled in the Spring of 2010. They have the unit acreage assigned to the well as 80 acres. I left a voice message with a person at the Noble land office today. 187 feet is a short 9 iron shot.
I think you may be suffering some drainage. Whether it would be economic to drill out the plugs and start producing again is another matter. Your leaseholder would need a reasonable expectation of recouping their cost to work over that hole, bring in a pump jack and tanks and so on. I'd certainly raise the issue with them. It might not make your neighbor wells owners happy, but then they knew they might be draining your oil. My brother frequently tells me, it's not oil friends, it's oil business. Good luck.
rwk, the COGCC production data report for the well next to ours indicates sales of 32,925 bbls of oil for 2011. I have been in contact with Noble and they are working to resolve my question. Thanks for your comments...
r w kennedy said:
I think you may be suffering some drainage. Whether it would be economic to drill out the plugs and start producing again is another matter. Your leaseholder would need a reasonable expectation of recouping their cost to work over that hole, bring in a pump jack and tanks and so on. I'd certainly raise the issue with them. It might not make your neighbor wells owners happy, but then they knew they might be draining your oil. My brother frequently tells me, it's not oil friends, it's oil business. Good luck.
Mr. Tofson…of course sipping occurs on a regular basis. If you have liquid oil or gas under your land, you need to drill or put the driller on notice that you need a protected share. I believe your oil and gas to be shale type released, which is usually done through horizontal drilling or “Fracking”. If their well is a fracking well, then you would be entitled to royalty rights if their well is in the same section as your mineral property. You need a good Landman or Mineral Attorney to represent your interest. Good luck, Thomas…
Tom or rw Kenndy, wouldn't COGCC Rule 318A come into play here? I am thinking about the 400' x 400' spacing requirement.
Thomas Mullins said:
Mr. Tofson....of course sipping occurs on a regular basis. If you have liquid oil or gas under your land, you need to drill or put the driller on notice that you need a protected share. I believe your oil and gas to be shale type released, which is usually done through horizontal drilling or "Fracking". If their well is a fracking well, then you would be entitled to royalty rights if their well is in the same section as your mineral property. You need a good Landman or Mineral Attorney to represent your interest. Good luck, Thomas......
Mr. Tofson, I think your operator would be the best route to protecting you from inequitable drainage. The operator of the other well may not be on firm regulatory ground. Waivers are available for location in the spacing, but there is also a provision for the operator writing a letter saying no waiver is needed. Your wells status as plugged and abandoned may come into play on this also. It could be that it's abandoned status would alter it's consideration in a drilling permit for another well. Someone could also claim that your well would constitute a method of protecting your correlative rights, that you could reopen it and continue production. I can see a problem that may be pertinent. If your operator has an interest in the other well they might not be as concerned as you with drainage issues. I think you need more information on the other well to firm up what is, or is not happening.
Our current lease is with Chesapeake and I am anticipating hearing from them next week, or at that is what I was told. Thanks again for your insight on this matter.
r w kennedy said:
Mr. Tofson, I think your operator would be the best route to protecting you from inequitable drainage. The operator of the other well may not be on firm regulatory ground. Waivers are available for location in the spacing, but there is also a provision for the operator writing a letter saying no waiver is needed. Your wells status as plugged and abandoned may come into play on this also. It could be that it's abandoned status would alter it's consideration in a drilling permit for another well. Someone could also claim that your well would constitute a method of protecting your correlative rights, that you could reopen it and continue production. I can see a problem that may be pertinent. If your operator has an interest in the other well they might not be as concerned as you with drainage issues. I think you need more information on the other well to firm up what is, or is not happening.