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NORTHEAST OHIO WELL DEVELOPMENT


Where will you drill on my property?

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:

 


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