Wells between 3,000 to 4,000 feet in depth
must be located on a minimum of 20 acres and be
at least 300 feet from property lines. For depths
over 4,000 feet, a minimum of 40 acres is required
and the well must be located at least 500 feet from
property lines. In either case, wells must be at
least 50 feet from public roads and 100 feet from
occupied buildings. Adjoining property owners can
be pooled into a drilling unit to meet acreage and
setback requirements. Our drilling leases provide
you, the landowner, with complete control over where
a well, well equipment and pipelines are located.
How long does it take to drill and complete
a well?
The Clinton Sandstone is found at a depth
ranging from about 3000 to over 5000 feet in northeast
Ohio. The actual drilling of the well normally takes
about 6-8 days of continuous 24-hour operation to
complete. The well completion, surface equipment
installation and restoration are performed during
normal hours and will take about 30-60 days to complete
after drilling, dependant primarily on weather conditions.
What can I expect from a good well?
A good well will produce 150,000 – 200,000
MCF of gas in 20 years and will typically produce
one-half of those reserves in first four years.
The current wellhead rate for gas is about $7.00
- $9.00 per MCF. In the case of a well producing
200,000 MCF at $9.00 per MCF, the landowner’s
12.5% royalty could amount to approximately $225,000
over the life of the well.
What about well gas to heat my home and
outbuildings?
If a well is drilled on your property, you will
receive 200 MCF/year of free gas for domestic use.
The free gas is worth about $2,200 per year at today’s
utility rates.
Will the producing well make noise
and will there be an odor?
Gas wells are silent and odorless. Oil storage tank
vent pipes are equipped, if necessary, with a charcoal
vapor scrub unit to eliminate any potential petroleum
odor.
What is directional drilling?
Today’s technology allows drilling to a bottom
well target that is otherwise inaccessible from
the surface using traditional drilling methods.
Examples of inaccessible surface locations may be
under buildings, lakes, wetlands or cemeteries.
Directional wells take about 30% longer to drill,
require special equipment and personnel, and are
more expensive than conventionally drilled wells.
In urban settings, about 25% of wells that are drilled
are directional.
What does it cost to drill a well?
The cost to drill and complete a typical urban well
is in excess of $300,000 with directional wells
costing $400,000 or more. Cedar Valley Energy, Inc.
and our oil and gas industry partners bear 100%
of the cost to drill, complete, operate and maintain
each well.
Are you insured?
Yes, Cedar Valley and our energy partners are insured
and can provide, upon request, an insurance certificate
annually to property owners with wells. As the operator
of the well Cedar Valley carries liability insurance
of $4,000,000.00 and our subcontractor’s are
also required to provide insurance of at least $1,000,000.00.
Are producing wells safe and what are Cedar
Valley Energy’s typical safety standards and
procedures?
During drilling operations the work area may be
fenced and signs posted. Ohio Department of Natural
Resources (ODNR) well inspectors visit the site
periodically during drilling operations to inspect
the location and to verify that well safety equipment
is functional. ODNR inspectors also witness that
surface casing is properly installed to seal off
fresh water zones. The drilling pits are generally
closed within two weeks, depending on weather conditions.
When required, storage tanks are equipped with vacuum
lids and flame arrestors. Emergency numbers are
permanently posted at the well and tank battery.
Additionally, The Ohio Oil and Gas Association provides
periodic well safety training to local emergency
responders.
How can I learn more about drilling on
my property?
Call Joe Lang at (330) 262-1034 Ext. 1
or email him:
