Compulsory Pooling of Shale Wells

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    James NorthrupCooperstown

    Compulsory Pooling

    Separating fracks from fiction

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    Oil Field Unitization - Original Intent

    Oil wells tap common pools Wells can drain adjacent property

    Better to pool into common well

    Essentially voluntary

    Not your usual well

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    Original Purpose For Pooling

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    Without Pooling

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    One well taps unitized pool

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    Forced Pooling = Caution

    Most states oversee unitization

    Forced pooling rarely invoked in Texas

    Reasons to opt out

    environmental

    financial

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    Not Applicable to Horizontal Wells

    Shale gas low permeability

    Cannot drain adjacent property

    have to frack it to drain it

    run lateral under adjacent property

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    Horizontal Pooling Illegal

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    Geology (& Politics) of Well Spacing

    Spacing based on maximumarea drained

    Shale gas 40+/- acres from well bore

    NY shale gas spacing = 640 acres

    Why so large ?

    politics - not geology based on length of the laterals

    compels un-drained owners into wells

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    NY Compulsory Pooling Law

    NY law amended in 2005 60% + can force neighbors into well

    Can be applied to horizontal wells

    DEC condemns adjacent landowners Frackers use it to get 640 acres

    private eminent domain of mineral rights

    http://www.un-naturalgas.org/Is%20your%20unleased%20property%20facing%20200908181.pdf

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    Pooling Without Land Use Controls

    384 + acres to start Adjacent 256 acres condemned into well

    No signing bonus for condemned

    Well fracked underneath any land use house, water well, daycare center, school

    http://www.propublica.org/article/forced-pooling-when-landowners-cant-say-no-to-drilling

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    Forced Pooling Without Land Use

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    Pooling a Subdivison . . .

    http://www.star-telegram.com/2011/07/14/3222593/natural-gas-industry-changes-tactics.html#article

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    Prohibit Forced Horizontal Pooling

    Horizontal pooling should not be allowed

    achieves no public purpose partial condemnation of rights

    Pooling only applicable to vertical wells

    no rational for horizontal drilling

    Clarify the NYS law

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    Support Home Rule

    Support Home Rule in Albany get your rep to support

    or replace your state rep / senator

    Not your usual well

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    Land Use Resources

    Land Plans Nan [email protected]

    Municipal Regs. Helen [email protected]

    http://my.brainshark.com/Prohibit-Fracking-Through-Zoning-926534928

    http://my.brainshark.com/Land-Use-Planning-to-Protect-Your-Town-482597169

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    Local Initiative Resources

    Town Petitions and Surveys

    Julie Huntsman - [email protected]

    Shale Gas Presentations

    Chip Northrup - [email protected]

    http://my.brainshark.com/Prohibit-Fracking-In-Your-Town-872341386

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    Now Go Get Busy