Hello everybody. I live in Grant County, WV. Recently we drilled a water well on our property. They went 425 ft and hit gas. I'm new to this and I'm trying to find someone to come look at it. We can't use the well for water and it would be nice if someone would use it and possibly recover our expenses for drilling the well in the first place. We have 9 acres. Would it be worth the effort in pursing this and how do I go about it.? Thanks!
Amanda, call the nearest exploration and production company.
Hunter Burdick said:
Amanda, call the nearest exploration and production company.
Thanks for the information, but that's the problem. I don't know who that would be in this area.
This is a very interesting situation. The first area I'd suggest investigating is whether or not your state oil and gas regulatory body is going to have any jurisdiction over this? THere may be some kind of minimum depth threshold determining their authority in the matter. If indeed there is enough volume of gas to warrant the cost of likely cleanup and production equipment outlay, then comes the question of getting the gas to a pipeline where it can be marketed and sold.
In Ohio, this is such a common occurrence that the farmers have a great workaround. The gas volumes are extremely low and wonderfully low pressure. Like 45 psi. Like your tires.
They flow the water/gas solution to the surface and capture it into a cistern with a domed lid. When the pressure comes down to one atmosphere, the gas is released out of solution and collects against the top of the dome. At the top of the dome, a set of valves and pipes takes the gas to the barn for heating and the house for heating and lighting. What sucks is that they have to pay a severance tax to the state.
The water is not potable due to dissolved solids and whatnot precipitating out of solution.
Buddy Cotten
Buddy has a good point, it would also presumably run a generator. Between you not ever having an electric bill again and the electricity you sell to the electric company, you could do ok, if there is sufficient quantity of gas.
Echoing Kenny's response, the second, but no less important question is "Do you own the minerals"? If not, you probably have no right to produce, use or sell this gas.
If you own only part of the minerals you may have "a duty to account" to your co-owners for any gas produced, whether it was sold or used as fuel on-site.
If you own all of the minerals, you may be free to use the gas as suggested by Buddy and R.W., although you might be required to register with the state regulatory agency as an oil and gas producer and owe severance taxes on the production volumes, even if you don't sell the gas to a third-party. Not to mention, comply with all federal, state and local laws and ordinances regarding gas production.
For most folks, this is potentially a can of worms they'd rather not open.