Unatego Area Landowners Association

Otego - Unadilla - Butternuts Area Residents

        Important Information on Drilling for Gas

Marcellus Drilling News
An online resource and news service specifically for landowners who live in the Marcellus Shale region of the eastern United States. This news service strives to provide landowners with timely information they can use to become informed, make decisions, and monitor developments throughout the Marcellus Shale region.
Local Landowners Coalitions:
For Landowners in Hancock, NY area seeking a Class Action lawsuit against unscrupulous practices
http://www.pagaslease.com/directory_public.php - Directory of NY & PA gas coalitions
Otsego County Planning Dept.
Reports on NYS geology going back to 1979
Managing Our (New) Resource Wisely
http://www.outreach.psu.edu/programs/natural-gas/files/GasPlay_Engelder.pdf - Setting the Record Straight, by Terry Engelder, Ph.D.
http://pubs.cas.psu.edu/FreePubs/pdfs/ua448.pdf - A Landowner's Guide to Gas Exploration
Environmental Websites:
http://www.occainfo.org/ - Otsego County Conservation Association
www.ogap.org  - Oil & Gas Accountability Project.  Report: Marcellus Shale; Report: Our Drinking Water At Risk; Book: "Oil and Gas At Your Door? A Landowner's Guide to Oil & Gas Development
NY State DEC Links:
http://www.dec.ny.gov/energy/46288.html - general info. on horizontal drilling and the Marcellus Shale
http://www.dec.ny.gov/energy/36159.html - gas well production stats. for 2007
Report on hydraulic fracturing of the Marcellus Shale 
Oil - Gas Industry Info. :
http://marcellusdrilling.com/ -  Marcellus Drilling News
http://www.iogany.org/ - Independent Oil & Gas Association of New York
http://www.slb.com/content/about/technology/index.asp  Schlumberger Inc.: Drilling Industry Pioneers
http://www.bjservices.com/website/index.nsf - BJ Services, Shale Experts: One-Stop Shopping
Glossary of Terms
http://geology.com/articles/marcellus-shale.shtml - technical / scientific info. on Marcellus Shale
Update on Regional Assessment of Gas Potential in the Devonian Marcellus and Ordovician Utica Shales of New York  http://www.slb.com/media/services/resources/articles/drilling/200812_jpt_drillingachievements.pdf  Drilling Achievements: Past, Present, and Future: Journ. Of Petroleum technology
http://www.landman.org/ -  Landman's official site
http://www.topix.net/com/cog - Cabot Oil & Gas Investor's News
http://www.nymex.com/ng_pre_agree.aspx - NY Mercantile Exchange
Companies Purchasing Land Leases in Broome County, Central New York and Northeastern PA.
http://www.lenaperesources.com/ Lenape Resources www.covalentenergy.com - Covalent Energy     www.nornew.com - Nornew Inc
www.xtoenergy.com - XTO Energy Inc
www.chk.com - Chesapeake Appalachia 
www.pennvirginia.com - Penn Virginia Corp. 
www.eastresourcesinc.com - East Resources Inc.
http://www.gastem.ca/gastem-us.php interested in Utica shale in New York State (Cherry Valley)
In The News:
Recent article on Otsego County gas leases with OCCA Map.
the Southern Tier
Helpful Listserves: 

                 Pennsylvania State University Gas Webinars

To address the opportunities and challenges of exploring for natural gas in the Marcellus shale in much of Pennsylvania, Penn State's College of Agricultural Sciences and Penn State Cooperative Extension  offered a seven-part series of online seminars running through May 2009.  

The Webinars cover a variety of topics ranging from the local government's role in gas exploration to the effects of deep-well drilling methods on water supplies.  The series is targeted at extension educators, federal and state agency representatives, and interested citizens.  

Upcoming webinars may be found on the Events page.  Previous sessions may be viewed by clicking on the sites below:   

                  Glossary of Terms for Oil & Gas Drilling


3-D Seismic - Seismic data that is acquired and processed to yield a three-dimensional picture of the subsurface.
Assignment - The sale, transfer or conveyance of all or a fraction of ownership interest or rights owned in real estate or other such property. The term is commonly used in the oil and gas business to convey working interest, leases, royalty, overriding royalty interests and net profit interests.
BANANA - Acronym for “Build absolutely nothing anywhere near anyone”. Bananas rigorously employ every possible tactic to block any project anywhere. Bananas typically have far too much free time and little tolerance for differing opionions or evidence that does not support their conclusions.
BOE - Barrels of oil equivalent
BS - A brownish substance liberally applied during the leasing negotiations. Most often spread during a "hard sales close" by an overzealous landman.
Bbl - A barrel of 42 U.S. gallons of oil
Bcf - A billion cubic feet of natural gas
Bcfe - A billion cubic feet equivalent, determined using the ratio of 6 Mcf of natural gas to 1 Bbl of crude oil, condensate or natural gas liquids.
Boiler Plate Offer - A term often used to describe a standard company lease offer. Boiler plate leases generally grant many rights to the company that an informed landowner would strike out. Some of these often include royaltys paid after expenses are deducted, free storage and free pipeline right of ways.
Bonus - A monetary incentive given by the company to the mineral owner for executing or ratifying an oil, gas and mineral lease.
CARI - Comprised of eight NY counties and several grassroot groups. Opposed to NYRI's transmission line.
CNG - Compressed Natural Gas
Completion - The installation of permanent equipment for the production of oil or gas.
Conveyance - A written contract between a grantor and grantee, used to transfer title or rights to real estate or property. Typical conveyances include oil, gas and mineral leases; assignments; deeds and rights of way.
DCS - Damascus Citizens for Sustainability - environmental group
Delay Rental - Consideration paid to the lessor by a lessee to extend the terms of an oil and gas lease in the absence of operations and/or production that is contractually required to hold the lease. This consideration is usually required to be paid on or before the anniversary date of the oil and gas lease during its primary term, and typically extends the lease for an additional year. Nonpayment of the delay rental in the absence of production or commencement of operations will generally result in abandonment of the lease after its primary term has expired.
Development Well - A well drilled within the proved area of an oil or gas reservoir to the depth of a stratigraphic horizon known to be productive.
Exploratory Well - A well drilled to find and produce oil or gas in an unproved area, to find a new reservoir in a field previously found to be productive of oil or gas in another reservoir, or to extend a known reservoir.
Favored Nations Clause - A clause which stipulates that if higher terms are negotiated you will get the difference within a certain amount of time or your lease is invalid. A Favored Nations clause may be negotiated for both the bonus and the royalty or one or the other. A time limit specifies the time that the clause is in effect, and a geographic limitation is generally included to define the distance from the leased land where the clause is to be honored.
Gas Equivalent - 6 Mcf (6000 cubic feet) = 1 Bbl Oil (42 US gallons) Measured at atmospheric pressure at 60*F this can also be applied (roughly) to gas liquids or condensate So: 6 Mcf = 1 Bbl Natural gas liquids Therefore, if you produced 3 Bbl gas liquids, you would have 18 Mcf/e
HBP - Held By Production refers to an oil and gas property under lease, in which the lease continues to be in force, because of production from the property.
HIMBY - Acronym for "Here In My Back Yard". A term for a person who welcomes development in his/her neighborhood, or community. HIMBYS typically accept the stated benefit of the project, or have a vested interest in the successful completion of the project.
Horizontal Drilling - A drilling technique that permits the operator to contact and intersect a larger portion of the producing horizon than conventional vertical drilling techniques and can result in both increased production rates and greater ultimate recoveries of hydrocarbons.
LNG - Liquified Natural Gas
Lease - A contract between mineral owner, otherwise known as the lessor and a company or working interest owner, otherwise known as the lessee in which the lessor grants the lessee the right to explore, drill and produce oil, gas and other minerals for a specified primary term and as long thereafter as oil, gas or other minerals are being produced in paying quantities. This lease gives the lessee a working interest. The oil and gas lease is granted in exchange for royalty payments to the lessor.
MBbls - One thousand barrels of oil
MMBOE - Million barrels of oil equivalent
MMBbls - Million barrels of oil
MMcf - Million cubic feet of natural gas
MMcfe - Milion cubic feet of gas equivalent, determined using the ratio of 6 Mcf of natural gas to 1 Bbl of crude oil, condensate or natural gas liquids.
Mcf - A thousand cubic feet of natural gas
Mcfe - 1,000 cubic feet equivalent, determined using the ratio of six Mcf of natural gas to one Bbl of crude oil, condensate or natural gas liquids.
NIMBY - Acronym for "Not In My Back Yard". A term for a person who resists unwanted development in his/her neighborhood, or community. NIMBYS typically resist projects like wind farms, oil refineries, manufacturing plants, prisons or other projects deemed undesirable "here", but ok in someone elses back yard.
NYRI - New York Regional Interconnect - HVDC transmission company High Voltage Direct Current. Proposes a transmission line in NY State. According to many, no ecomonic benefit for people along its route. It is only for NYC's benefit and is a Canadian for profit private corp.
Overriding Royalty (ORRI) - A revenue interest in oil and gas, created out of a working interest. Like the lessor's royalty, it entitles the owner to a share of the proceeds from gross production, free of any operating or production costs.
Paid Up Lease - An oil and gas lease in which delay rentals for the entire primary term are paid in advance with the bonus consideration.
Pooling - The accumulation of smaller tracts of land, the sum total acreage of which are required for a governmental agency to grant a well permit or assign a production quota or allowable to an operator.
Primary Term - The period of time during which an oil and gas lease will be in effect, in the absence of production, drilling or other operations specified by the lease. The oil and gas lease can be perpetuated past the primary term by production in paying quantities, drilling, operations and/or the payment of shut-in royalties specified by the lease.
Proven (Proved) - Typically defined as estimated quantities of oil/gas/gas liquids which geological and engineering data demonstrate with reasonable certainty to be recoverable from known reservoirs under existing economic & operating conditions
Pugh Clause - A clause, which is calculated to prevent the holding of non-pooled acreage in a lease while certain portions of the lease acreage are being held under pooled arrangements. The main purpose of a Pugh clause is to protect the landowner from having their entire property held under a lease by production from a very small portion.
Recompletion - The completion for production of an existing well bore in another formation from that in which the well has been previously completed.
Royalty - A percentage share of production, or the value derived from production, paid from a producing well. It is important to specify how royalties are to be calculated and paid as well as insuring that you are given the right to have a third party auditor verify the records of the production from your wells. Your royalty should be free of the costs of drilling and producing.
Secondary Term - The term of an oil and gas lease in which the lease is held in force after expiration of the primary term. Production, operations, continuous drilling and/or shut-in royalty payments are often used to extend an oil and gas lease into its secondary term.
Severance - Mineral rights may be severed or separated from surface rights by mineral deed or by mineral reservation.  Severance by mineral deed occurs when a party owning both surface rights and mineral rights sells or grants by deed all or a portion of the mineral rights underlying his/ her property. This deed, known as a mineral deed, is registered with the county register of deeds and will become a part of the abstract of title to the land involved.
Shut In Royalty - A payment stipulated in the oil and gas lease, which royalty owners receive in lieu of actual production, when a gas well is shut-in due to lack of a suitable market, a lack of facilities to produce the product, or other cases defined within the shut-in provisions contained in the oil and gas lease. It is the responsibility of the landowner to clearly establish the allowable time limits for a well to be shut in by way of an addendum.
Spud A Well - To begin drilling operations. Rig is up and drilling commenced.
Term Lease - An oil and gas lease that expires after a specified period of time, regardless of whether oil, gas and/or other minerals are being produced.
Top Lease - An oil and gas lease wherein the bonus consideration is paid at the signing of the lease. However, this lease becomes effective only after the expiration or termination of an existing lease on the tract of land.
UDPC - Upper Delaware Preservation Coalition - environmental group
Unitization - The combining of multiple wells to produce from a specified reservoir.
Vertical Drilling - A drilling technique that bores a single well shaft vertically into the desired geological strate.
Workover - Operations on a producing well to restore or increase production.



Additional Glossary  Resources

Dept. of Health and Human Services:   http://www.cdc.gov/niosh/pdfs/83-127g.pdf

Prodigy Oil & Gas:  http://www.prodigyoilandgas.com/oil-and-gas-glossary.html   

Talisman Energy Company:  http://www.talisman-energy.com/glossary.html

Chesapeake Energy Company:  http://www.chk.com/naturalgas/pages/terminology.aspx

The Energy Blog (Energy Industry Terms):  http://energy.typepad.com/dictionary1.htm