A person came to my house in Panola County this weekend wanting permission to criss-cross my property with equipment to explore for Haynsville Shale. His paperwork was a two year lease for $15 per acre and my property was mapped on the lease and a total amount was already printed. He described the process of laying or inserting seismic devices in the ground. I asked for a written description of what was being proposed and he didn't have anything to give me, but said he'd be back. I asked if he was contracted or worked independently and he said independent, but all of the information would be "given" to the big companies - Devon, Chevron, Exxon, etc. Chevron owns the lease to my property and there are several producing gas wells. Anyone else had this request or can inform me of what this involves.
the most glaring red flag i see based on what you have shared about the offer is the two year term. i haven't heard of any legitimate seismic offers for that length of time. mine was for less than one year, and a good bit more money too. he probably just wants to flip it.
I read in an article in the Panola County newspaper that a company from Dallas was going to do some seismic testing utilizing the roads. It did not say anything about private land owners. Typically they do not do much seismic testing if there are known producing wells in the area. What area of Panola County was this? We are in the "Woods Community".
A lot of seismic testing is done on road right-of-ways, but that depends upon the spacing and alignment of roads. When an anomalous condition is identified more closely space lines may be required. In that case they will request permission to cross privately owned land.
It is not at all uncommon to do seismic work within boundaries of an existing oil or gas field, most especially if existing production is from relatively shallow depths and company is interested in drilling to an underlying formation. But, sometimes they are simply trying to better define geologic structure of a producing formation. For example; to more precisely delineate location of faults.
Which acquisition company approached you? It should say on the seismic permit. There is a group shoot taking place in the area. The group consists of EOG, ExxonMobil, Petrohawk, Devon and BP. The going rate for that area is $25 per acre. If it is the survey I am talking about, the reason for the 2 year term would be due to the large size of the survey.
you can put requirement of two week notice within the two year term before they enter your property to shoot the seiesmic with 45 days to complete it and be off your property and permit then expires. This way you not in limbo for two years waiting and worring if and when they will start/finish it. This is what I had in my permit. Also no reason not to let them shoot 3-D on your minerals. This would improve possible well drilled into your deep rights for that could be how you get money into bank by maximal pay out of your mineral interest.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More