If you have oil or gas on your land watch out for directional drillers

[RB TexLa]

We've been told of a couple the past week that some were caught trying to slant drill near ours. Best thing is to just drive out to it and leave tire tracks so they know someone has been there and is watching.

[Ian David]

1. You've gotta be kidding. Seriously??

In any case, isn't there some way you can intercept the drill head if it's on your property?

I hear they're expensive.

Then again, Iraq could have done that, and they wouldn't have needed to invade Kuwait when Halliburton started slant-drilling into their territory.

[RB TexLa]

3. you can pretty much do anything to unauthorized drilling equipment that is

on or under your property. Dismantle it take it home whatever you want.

[Ikonoklast]

28. That was the reason Iraq invaded Kuwait

in the first place.

The Kuwaitis were slant drilling into Iraqi oilfields, and when found out were asked to stop. The Kuwaitis told Iraq to go f**k themselves. When Iraq was told by our government at the time (Bush I) that we would not get involved in an internal matter between the two governments, Saddam Hussein invaded.

[bahrbearian]

2. My family has 350 acres in Montana that the Gas companies have

been pushing my Mom to sign a lease with them for rights. They didn't offer that much money a couple of thousand. I told her not to sign. but I constantly worry about slant drilling, I guess I should go for a drive.

[Canuckistanian]

4. Get a cease and desist order

Drills can now be guided accurately in any direction. This is theft if it passes underneath any of your property lines.

[Ian David]

6. Not as satisfying as creating a hunk of twisted metal...

Oil well drilling utilises roller, fixed-cutter diamond, or diamond-impregnated bits to wear away at the cutting face.

http://en.wikipedia.org/wiki/Drilling_rig#Oil_well_drilling

Sounds expensive.

Hate to see them lose one.

[RB TexLa]

7. About 5 years ago we had some just left near our wells

Called the exploration company and they just used it to replace parts on one of our wells and then sent a check to us for the equipment. That was when I found out you can do whatever you want with it.

[TheCentepedeShoes]

33. Used to have a gold

drill bit on a chain. Wore it all the time, but the chain broke and I lost it.

[karlrschneider]

38. I still have mine after 50 years! My dad bought a bucket full of them

after he brought in an oil discovery in Illinois (Johnsonville) in the late 1940s and was making $10,000 a month - not bad for those days...he gave them away to friends and clients. (just picked it up out of my desk drawer...the little cutting bits still rotate) :D

[Mr_Jefferson_24]

8. How could they do that...

...without leaving a cavity that could be detected?

[Ian David]

9. Let me run out to my garrage...

Damn.

I seem to have misplaced my ground-penetrating Radar device.

Now I have no idea if my neighbor is slant-drilling me.

[KAZ]

14. You're on a roll today!

I don't remember you being so funny! Thanks for the laughs.

[Canuckistanian]

18. Even GPR wouldn't work

I used to be in the GPR business. They can only "see" about 40 feet underground, depending on the soil.

And you'd have a hard time finding a small void like that.

So, unless you drilled down yourself and struck the pipeline, you'd never know for sure.

But the driller knows almost exactly where it is.

[Ian David]

27. My GPR goes to eleven. Most GPRs only go to ten. n/t

[karlrschneider]

13. You might be turning down a good deal. Negotiate for a good

royalty and you could become quite wealthy if they find significant amounts. A 'couple thousand' is actually a pretty good offer for leasing rights.

[bahrbearian]

17. Thats what they keep telling her,, but what about clean up?

[karlrschneider]

22. Not sure about Montana but most states have laws with teeth

that require restoration. (I'm assuming you mean local environmental damage...most platforms have fairly small footprints nowadays compared with a few decades ago)

[Paladin]

34. There Are State and Federal Statutes Governing Clean-up....

...and those statutes have teeth in them, believe me.

Beyond that, you can put rider provisions in your lease which stipulate rigorous requirements for surface reclamation, with stiff penalties for non-compliance, and damage payments, as well. You can restrict exploration activities during calving seasons, if that's what your property is used for. You can have control over where the exploration company places its roads on your property. Get with a local oil and gas attorney---they have all these provisions on their computers, and they can spit out a protective rider for you in an hour. You'll pay for it, but it will be worth it.....

[karlrschneider]

37. Good advice and it's not hard to find a good o/g lawyer up there.

...

[Paladin]

32. A Good Offer? I Kind Of Doubt It.

A "couple thousand" for a lease on 350 acres? Sounds pretty lean to me---but I don't have all the details on just how much of that 350 acres we're talking about (is it all 350 acres, a 1/100th interest in the 350 acres, or what?), nor about what sort of production history the area has. The landowner needs to check with her adjoining landowners to see what sort of money is being offered to them. It might be helpful to go by the county clerk's office to see what can be found out about industry activity in the area.

The thing to keep in mind is that the Rockies are exploding with activity these days. I know this for a fact, I'm in the business. I've been offering up to $1000.00 per acre for oil and gas leases in the Powder River region of N.E. Wyoming---and people are turning me down, left and right.....

[karlrschneider]

36. I assumed the poster meant "per acre" for a small tract. It would be

pretty unusual for anybody to lease up 350 acres in one fell swoop. If an offer was made, I'd be surprised if there hadn't been some doodlebugging at least to pin down a likely (small) portion for what -sounds- like a wildcat from what little information I gleaned. My dad had some leases in the Powder River area...I worked on wells at what was called the "Ant Hills" region in Niobrara county many years ago, close to Lance Creek. Not sure if any more activity has taken place there the last 20 years or so though.

[xxqqqzme]

5. damn we have natural gas on our property

something else to be aware of - rat bastards.

[MuseRider]

10. Thank goodness the pipeline

runs a quarter mile from my place. I bought my place only after checking it out since about 15 years ago the sucker blew a huge chunk out of a highway down the road.

They will do whatever it takes won't they? All I have on my place is a nice little spring. When we run out of water I will be watching.

[karlrschneider]

11. One thing to watch out for, though, is you MIGHT NOT own the

mineral rights under your property. This happens far more often than most people know about. However, -usually- in such a case, the mineral owners have the right to reasonable ingress and egress to mine or develop them.
Check your property deed. Just a FYI... (I've been in the oil bidness for 50 years and seen a lot of chicanery)

[RB TexLa]

12. the land I am worried about I own the mineral rights, that's what the land

is for, we also own it on most of the land around to prevent someone getting on the edge of anything.

[karlrschneider]

15. Well, if you think it has potential, why not shop around for someone

to take a lease and drill? You will get at least 12.5% of the net proceeds and then you wouldn't have to worry about the 'slant' guys (whoever does the exploration and production on your property will be VERY vigilant about that sort of thing)

[RB TexLa]

16. It's been drilled

We mainly don't want idiots trying to do something they are going to get caught at messing anything up. That's what I'm protecting.

[karlrschneider]

20. It's been drilled? So is there any production? If so, tell your

producers and let them watch for and/or go after anybody trying anything. I guarantee you -they- won't let a competitor get away with it. If there's nothing being produced, what's to worry about? Sorry not sure I understand the situation.

[RB TexLa]

21. It's producing, the people that have been caught trying

are not really competitors of anyone. More like thugs who happen to know a little about what they are doing. I'm sure they are watching, just not always sure they are watching close enough.

[karlrschneider]

23. Okay, I see now. Are you perchance talking about areas around

Stephens or Erath County...Breckenridge, Dublin, etc? I'm pretty familiar with that part of the world...worked in the oil fields around there since the 1950s.

[RB TexLa]

24. Desoto Parish, LA

[karlrschneider]

30. Ah, okay. Bad guess here...good luck anyway.

;-)

[bahrbearian]

25. So a couple thousand for the lease and 12.5% from production

that could be a chunk of Change,, how do you monitor the production?

[karlrschneider]

31. check your inbox OOPS sorry

sorry I got you mixed up with another DUer with a similar question.
Lemme see if I can retrieve the message...

[Paladin]

35. Try For A Better Royalty Than 12.5%

The 1/8 (12.5%) royalty is rapidly disappearing in the present-day oil and gas business. See if the exploration company will give you a 1/6 (16.67%), 3/16 (18.75%), or 1/5 (20%)royalty. In really hot production areas, a 1/4 (25%)royalty isn't unusual....

[enid602]

19. OK

I just signed with an oil company with re: to my 200 ac in Garfield County, OK. They explained to me that they buy out all the rights in the area, just drill one hole where four quarters come together, and horizontally drill to all quarters to find the oil. Sounds pretty clean, but how do they know whose oil they are drilling? Furthermore, how would one know if they are giving me credit for what they extract from my land?

[Robb]

29. Check with your state's Oil and Gas Conservation Division

They monitor extraction to the cubic foot, spot inspect, etc. Might be worth getting to know your local compliance officer, too.

Like all such agencies, they enforce on a complaint basis, usually. Squeaky wheel and what-not. ;)

[ShortnFiery]

26. Too funny!

Black Gold - Texas Tea ... Yeah! I wish :P