gas well in Arkansas?

[homebody]

Can anyone tell me their experiences with this? Such as leases, royalties. Seems to be a lot going on there. Is there really any money there for a person? Thanks.

[Oilpatch197]

I belive you get 8%, maybe 6% not sure tho, but if they want to drill on your land, do it, even if they hit a dry hole, most drilling companies will pay you $1000 for property damage.(I think they legally have to pay)

[Siryet]

A friend across the road gets a whopping $25.00 a month check from her gas well.

[Mike in Ohio]

There are normally several parts to a gas lease on a piece of land (not on property which is in production).

There would be a small upfront payment and a small annual payment. If they drill and actually produce you would get some amount of free gas (with a stipulation that it not be for commercial use). Most recent leases Ihave seen limit the gas to 200,000-300,000 cubic feet of gas. Quite a few older leases didn't limit the amount of gas. To a homesteader, the free gas can be worth more than the amount of royalties the well might bring.

You do want to make sure that you have protection to ensure the company closes down the well properly (This can run to a hundred thousand dollars or more). For example, they may have posted a bond. You could also take out an insurance policy at their expense.

The amount that someone is willing to pay will also depend on a variety of factors. Our land has a gas collection pipeline runnint through it. That makes the cost of getting the gas to market significantly lower. I someone has a parcel that is 10 miles from a collection line they might as well be on the moon unless there is a whole lot of production in the area.

We own our oil and gas rights in our area a lot of the producing wells are gas wells. I we decide to lease gas rights we will probably go directly to a producer like North Coast Energy rather than to someone who simpy buys the rights and tries to put together a deal.

You also need to check state laws that govern wellsites. For example, in Ohio you need a minimum of 20 acres to place a well. There is also a minimum set back from the property line.

Hope this helps.

Mike

[seedspreader]

Currently at our church, we have a well, that is beginning to falter. Mike speaks rightly so when he says that the free gas is really the greatest benefit. We tapped into the columbia gas line (although our "provider" is dominion) and we have a switch valve, so as our gas fails, we can switch to the columbia line. But let me tell you, it's expensive. We have an old gas boiler and radiant heating, that through the years, served us well. But it's very ineffecient, and we are only running the "city" gas on sunday's and it's running us around 500 bucks a month to do that. We get 300,000 cf free, but the since the well has been faltering, they are thinking of shutting it down. The church has 14 acres so we had to "share" our well with the 14 acres next to us. the well is on the church property though, so the company that drilled, will probably sell the well to us for $1 and we think that there may still be enough gas to meet our needs into the future, but it will mean that our neighbors will be disconnected. Quite a dilemma really.

I WISH I had free gas, I would have a natural gas generator in a heart beat.