[Fleroo]

OK, I signed on to a 5 year lease with an energy company for their rights to tapping into the marcellus layer of gas. Well, that's at least how it was portrayed. Anyhow, another company contacted me about drilling shallow wells. They stated they can be put right next to a deep well operation. I told the person I was under contract with x energy company for the marcellus, and asked if that was a problem. They said check the contract. Well, having no experience with this kind of stuff, what would I look for in the contract ? How would it read in that company x is under a "deep" contract, and company "y" can be contracted to drill a shallow well ? any takers ?

 

[oliver88]

it depends on what your lease says as to the actual gas formation u leased.

 

[Fleroo]

yeah I know. I was just curous ast to there maybe being some legal-begal terms I should look for that will lead me one way or the other. Thx.

 

[1trueamerican]

i've not seen the leases but check to see if it states which formation/ formations or depths are leased to be drilled.

yes it is possible to drill 2 wells if the vertical separation is (i think) 1000'

mike

 

[surveyor]

if the gas company wrote the contract, i would expect that they wrote it for their benefit. unfortunately they protect their lease rights very well.