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Re: North Dakota oil (not political)


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Posted by Olddog on July 19, 2012 at 15:07:04 from (24.229.174.134):

In Reply to: Re: North Dakota oil (not political) posted by bill in colo on July 19, 2012 at 12:10:39:

The gas companies have created a LOT of work around here. I'm perhaps near the heart of the Marcellus Shale play in Bradford County, Pa.
The horizontal drilling and frac'ing has changed the old ways of oil/gas boom. By going DOWN a mile and OVER a mile they have bigger units, less vertical wells and less acreage dedicated to gas production. Some include over 1000 acres. They drill according to the strata down below, around here to the NNW and SSE. Mostly permitted for 6 wells per unit usually 3 south and 3 north. Over the last 3 years, they came in and drilled quickly 1 north and one south and considered all the land in the units "held by production" without the need to re-negociate the lease in the future.
If your private land is totally within the (gas company defined) unit, and you've signed a lease, you are in like Flynn. With the price of nat. gas down at present most landowners are seeing something like approximately $60/acre/month/per wellhead. Many are on the edge of the unit and only have a percentage of their acreage in the unit, hopefully, the remaining acrage to be in the adjoining unit. They've almost COVERED this county.
Price of Nat gas is down, they've cut way back, and moved out to Ohio and your way.
They are still making generous contributions to local infrastructure. VFCo's, schools, local cops, etc. Also restaurants, stores, housing in general has benefitted. Our roads and bridges would probably never have been this good. Saved this farming community from sliding into oblivion.


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