We have what's called prescriptive minerals - civil code, mineral code (much superior to common law, such as in Vermont) - keeps things simple - surface owners own their own natural gas around here (rule of capture, subject to corrletive rights and compulsary and volentary unitizaion), and if they are reserved by a former owner, they prescribe to the surface owner in 10 years of non-use. The drilling of a well or production from a well interrupts the running of 10 year prescription - generally. The gas is deep, mostly dry and high pressure (high pressure good). The agreement most folks around here worked out in the last couple years is that, in addition to royalty, to take, not in kind, but for free anywhere along the gathering system, but its more stable if it runs through the tailgate of the gathering facility first, after its gone through the low pressure and high pressure separator system and a dehydration and other units. Early clauses - where I got the idea for this area --- have been around in leases in Penn. since 1875? and around here since Spindletop - 1901 - and those were frequently for casinghead low pressure gas to run a stove. The hard scratch landowners are amazingly adept (sheeee - around here in regard to energy — it’s the french influence I suppose). When you get up in NY and other places in the NE and in CA, the tree-hugging one-eyed liberal commie pinko landowners (who are in great need buzz cuts) don't seem to have a clue as to what all this is about, and buy in to the smart liberal growth stuff (i.e. expsnsive no growth stuff) - go figure. I required the operator in the lease to engineer and set up and maintain (and remove if and when I should desire) a pressure regulator system of valves and backups and a stink pot (I just make sure they keep the stink pot full) -- and the operator also placed a high pressure governor, and then a regulator and then a second emergency shut off valve, but that's the operators' problem - always insist. They got Fluor engineers to engineer it for me. I even made the operator name me, my heirs and assigns AMIMA, as an additional insureds on the operators $25,000,000 liability and insurance policy covering the wellhead, gathering facility and my valve site and name the gathering facility after my wife (which was the hardest thing to get them to do). I also managed to get them agree to maintain a $10,000,000 seepage policy and a $25,000,o000 blowout policy (which they already had). My main tap is good one (taps good) so had them place me 3 - one near my water well and they placed on a line to by barn and one for my daughter’s family, if she ever decides to mover here. for as long as the gathering system is operative, even after my particular lease terminates. This field could last a couple lifetimes or so - or a lot less as it appears the whole country is falling being taken apart from top down as I’m writing this - maybe nothing will matter much in the next year or two anyway. But back to each well, they could last 25 years and then as marginal wells for 20 more depending on the price, but the decline curve analysis is positive indeed (positive is good). In any case they have to keep my lines presurized until the sun sets. There's room in the formation for about 8 more infield, alternate and a few substitute wells per now existing compulsory acre-feet unit. It's shapping up that their drilling will be staggered. As to natural gas, all this is possible because of the orders of magnitude leaps in seismic technology 3-D, 4-D and around here, the wonderful radial shoots, in the last few years --- and having the scientists in place to interpret the data. Now got to leave office to run back to my 72 home.



Edited by GradyT34 (05/18/09 03:13 AM)