This summer over a dozen oil wells have been put in around my place. I got a letter in the mail from the oil company asking me to sign the petition to allow for drilling. There is a representative coming tonight to discuss the company's plans. Never been involved in anything like this before, what do I ask? Will these guys be honest with me or just tell me what I want to hear? Depending on what they tell me, I might sit down with a lawyer to discuss as well.
Oil Guys
- Thread starter COBRA97SVT
- Start date
I wouldn't assume any company with any vested interest in doing something to their advantage to be 100% honest about their product. I work in O&G now but if they're asking you to sign a petition then I would assume it has some effect on your property (positive or negative? dunno) so I would make sure you find some way to get some unbiased details.
I'm a exploration geologist with a 'smaller-ish' company here in OK. Having you sign some petition to allow them to drill...sounds weird? A petition? Are you sure they're not force pooling you?
Yeah read that petition carefully. It may be that the city is trying to curtail their exploration in the region and they are asking for your support. Equally you may accidentally be signing away mineral rights, so be careful what you sign there.
In regards to a meeting with their representatives, I would ask them about the processes they are using both to drill or frack the well as well as how they maintain the infrastructure afterwords.
Here in Colorado, fracking is highly regulated and we've been doing it pretty safely since the 60's. Our shortfall has been on the servicing side. Oil capture tanks being left open, drops coming too late resulting in spills, waste water injection sites exploding etc. That's the stuff you really need to worry about if there are going to be wells in your area. As long as the company is maintaining the infrastructure after the fact it's usually not an issue, but sometimes public opinion has to force them to do more than just collect their product.
In regards to a meeting with their representatives, I would ask them about the processes they are using both to drill or frack the well as well as how they maintain the infrastructure afterwords.
Here in Colorado, fracking is highly regulated and we've been doing it pretty safely since the 60's. Our shortfall has been on the servicing side. Oil capture tanks being left open, drops coming too late resulting in spills, waste water injection sites exploding etc. That's the stuff you really need to worry about if there are going to be wells in your area. As long as the company is maintaining the infrastructure after the fact it's usually not an issue, but sometimes public opinion has to force them to do more than just collect their product.
Tell them after you get a 55gal monthly oil dropoff they are free to do whatever they want.
There must be a local regulation blocking them that they are trying to get removed. If you can get a copy of what they want you to sign post it here and I'll take a look at it. How far away are the closest wells to you now? Do you know if they are doing horizontal drilling?
Sorry. I had to. It bothers me haha
You don't frackture rock. You fracture it. Frack is just what these ridiculous news anchors and other idiots came up with when they spill their wealth of knowledge about how 'fracking' is causing earthquakes, waste water contamination, etc.
I just had one of my wifes friends friends brothers dog (haha I don't know who they were but I didn't know them) rant off after they posted some article about how the frac'ing here in Oklahoma is causing all these earthquakes, caused/causing the contaminated waste water all over the place, etc. It's truly crazy how much the media has control over how people think nowadays.
This is a very good point. Be very careful. If it were me, I would probably tell them to leave me with a copy so I could look it over and take it to a lawyer and see if they could tell me what it means for me.
As others have said, there are probably local regulations preventing their activities, and they need the support of the residents to overturn it. I would ask them why they need a petition and what exactly is preventing them from just drilling without it.
Likely they're receiving push back from the government entity for whatever reason (environmental, eyesore etc) in the area and are approaching the landowners of the area that will benefit from the drilling (read: $$$) in order to continue to drill.
5 million cash and an unlimited gas card. That sounds about right for my John Hancock.
It's Herbie Hancock......
In all seriousness, you're going to be meeting with a salesman. Plain and simple. They're there to sell you on the idea so they can make money off your property. So you're going to get a mixed bag of truth, spin, and just about 0 negative. I'd also read up on what property rights you have in your state. Some states you're only getting surface rights when you purchase land, not the mineral rights. If so and there is oil under your property, they can't touch it without the mineral rights signed away by you. If YOU know there is, you've got a big upper hand, but chances are you don't know. Ask where the well will be, not just where it will be seen above the ground as the actual collection of oil can be up to a mile off in any direction with 'fracking'.
Much further than a mile from the surface site. It may be drilled on his property but the actual target is his neighbors minerals thus he won't be getting anything other than damages for the surface work.
Speaking of...I just shook for a good 10 seconds. Will you PLEASE quit fracing...OR hook a brother up with a job!?!?
You think OK is bad? Imagine how bad people like me and other were hated by the hippies in Colorado... I'm sure RocketSurgeon on here can also tell you all about it. Picketers and shit in Fort Collins and other places.
You guys are kind of talking about different things. A company can come put the surface location on his property and either directionally drill off his property OR horizontally drill off his property. Obviously this depends upon the extent of his property. This also depends on good surveys and the company actually being truthful with where they landed (happens more than you think it would). Or they could be wanting to just do vertical wells and likely stay on his property, unless OP has a pretty small amount of acreage. This is just the surface loction
FRAC'ING (please...) is not going to get up near a mile. The drainage area might be spaced on 640's (so 640 acre spacing; a square mile), but most people aren't going to put a frac on a formation that would extend for a mile in each direction. Hell, not even a half mile radius (so a full mile diameter). You're looking at MASSIVE costs, the obvious potential of getting out of zone and/or frac'ing into a fault/large fracture and/or frac'ing into a barrier that isn't going to take the frac (aka...wasting money as you're trying to fracture rock that isn't going to fracture and likely isn't reservoir quality).
Many people get the wrong idea about oil companies and their employee's. It's actually quite remarkable how many land owners take advantage of companies regarding surface damages, this and that, etc. I can't tell you how many little things we've paid for to keep in good faith (since we'd be in the area for a long time or at least plan to) that either weren't our fault or had nothing to do with our business practices.
OP needs to figure out what this company wants, what their plans are, where they plan to drill FROM and TO, what formation(s) are being targeted, etc. They might not even want to put a location on your land. I don't know. Unless you have a massive amount of acreage and if you find out they do want to do business on your land, you need to talk with your neighboring land owners. If you tell them no way, nothing stops them from drilling right of the edge of someone else's land that says yes to them (they can butt up next to your property line) and just drill right underneath you if they need to. OR they can gain a majority and just force pool you. Either way, it's good to know what you're doing in terms of what you have in value, what your neighbors are getting or have been offered, competition in the area, etc.
FRAC'ING (please...) is not going to get up near a mile. The drainage area might be spaced on 640's (so 640 acre spacing; a square mile), but most people aren't going to put a frac on a formation that would extend for a mile in each direction. Hell, not even a half mile radius (so a full mile diameter). You're looking at MASSIVE costs, the obvious potential of getting out of zone and/or frac'ing into a fault/large fracture and/or frac'ing into a barrier that isn't going to take the frac (aka...wasting money as you're trying to fracture rock that isn't going to fracture and likely isn't reservoir quality).
Many people get the wrong idea about oil companies and their employee's. It's actually quite remarkable how many land owners take advantage of companies regarding surface damages, this and that, etc. I can't tell you how many little things we've paid for to keep in good faith (since we'd be in the area for a long time or at least plan to) that either weren't our fault or had nothing to do with our business practices.
OP needs to figure out what this company wants, what their plans are, where they plan to drill FROM and TO, what formation(s) are being targeted, etc. They might not even want to put a location on your land. I don't know. Unless you have a massive amount of acreage and if you find out they do want to do business on your land, you need to talk with your neighboring land owners. If you tell them no way, nothing stops them from drilling right of the edge of someone else's land that says yes to them (they can butt up next to your property line) and just drill right underneath you if they need to. OR they can gain a majority and just force pool you. Either way, it's good to know what you're doing in terms of what you have in value, what your neighbors are getting or have been offered, competition in the area, etc.
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Haha I felt that too! 7 stories up here in downtown. Felt a little iffy in this building. We're not too far from the train so usually that can sway the building a little, but that one I definitely felt
What building are you in?? Im at the Ok Co Courthouse.
//Just read
The first report we have received from the USGS about the earthquake felt across Oklahoma actually hit in Kansas.
A 4.8 magnitude quake hit near Conway Springs, Kansas which is 124 miles north of OKC. www.news9.com/earthquake
//Just read
The first report we have received from the USGS about the earthquake felt across Oklahoma actually hit in Kansas.
A 4.8 magnitude quake hit near Conway Springs, Kansas which is 124 miles north of OKC. www.news9.com/earthquake
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I'm working on a capital raise for a group the does exploratory drilling. Going off of what I know...when it comes to oil, generally speaking the offers made to land owners are fair and standardized. There is not much to gain by playing hardball. This only applies to oil. I'm guessing you met already but if it is just a petition I would sign it but not on the spot. Make them leave whatever information they bring you and come back another time. Talk to your neighbors and also a representative from your local government.
In my experience in oil they've always been more than fair, way too much to lose.
Side note..my great uncles wife's family had a ton of land in west Texas they sold the land and kept the mineral rights and there's a few of them that get a check for $500,000 a month, yes a month. I'd be ok with a gambling addiction lol.
Side note..my great uncles wife's family had a ton of land in west Texas they sold the land and kept the mineral rights and there's a few of them that get a check for $500,000 a month, yes a month. I'd be ok with a gambling addiction lol.
Pretty much its a 2 year lease on my minerals. My cut will be 5/32, they were saying that's high and usually only 1/8. I have a well about 200 yards from me in two different directions. He said that there have been a dozen wells installed and that production should start mid January. He did say that there will be horizontal drilling and I'm assuming that's why they want the rights to my minerals.
Yea thats what I did, although I think that I would have felt comfortable signing last night. I don't think I have much too loose.
I hope this is the case, I'll take a $1,000 a month!! Honestly I don't know how much to expect. A couple hundred a month is still better than nothing.
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