Click on any question below for details.
What gives Reserve the right to drill on my property?
Many years ago, the state of West Virginia severed (and taxed separately) the mineral ownership from the surface ownership. As such, it is not uncommon for the mineral owners to vary from the surface owners. Reserve has obtained oil and gas leases from the mineral owners underlying your tract; thereby, granting Reserve the right to extract oil and gas from underneath your surface tract.
What rights do I (the Surface Owner) have?
There are a number of federal and state regulations and guidelines in which Reserve must comply to protect the surface owner as well as human health and the environment. We advise that you visit the WV Surface Owners Rights Organization (www.wvsoro.org) to procure copies of the “Surface Owners’ Guide to Oil & Gas” as well as the WV Oil & Gas Production Damages Compensation Act. If needed, you may also want to consider seeking legal counsel to advise you of your legal rights.
How do you get permission to drill?
Prior to drilling, Reserve will visit your property to identify (or stake) potential well locations and we will welcome your input regarding the location of the well and access road. Next, Reserve will return with a WVDEP Oil & Gas Inspector to approve the site and work plan. Upon issuance of a drilling permit, Reserve will coordinate location construction, drilling, and reclamation activities.
Can I stop Reserve from drilling?
Unless there is a valid reason (e.g., staked too close to your house), the answer is generally ‘no’. Unless you opt to sign a Surface Waiver Form agreeing to our proposed work, prior to issuance of the drilling permit and field activities, you will receive a copy of the Drilling Permit Application and have fifteen (15) days to file your written comments and objections with the WVDEP. Reserve will then respond to any comments and WVDEP will decide to deny or issue the drilling permit. In Reserve’s many years of drilling new wells, we have yet to have a drilling permit denied.
How long will the process take?
Once permitted, it normally take 1-2 weeks to construct the access road and well location, 1-2 weeks to drill the well, and another 1-2 weeks of periodic work for additional activities (e.g., fracturing, reclamation, pipeline construction, etc.?) Final reclamation activities are completed during dry weather conditions (i.e., if a well is drilled in the winter, we complete the final grading and reclamation in the Spring).
How will this impact my neighborhood?
Reserve complies with all city and county ordinances to help insure that our operations are sensitive to urban neighbors by restricting noise and light, controlling road access and providing security measures. As with any construction site there will be additional truck traffic while setting up and taking down equipment. Rest assured, if we track mud on the road, we will be working to remove it as quickly as possible. We will strive to minimize disruption to you, your neighborhood, and the environment.
What will happen to all that water that collects in the well pit?
First, in comparison with the Marcellus wells we all hear about in the news, Reserve’s drilling activities do not require or generate excessive amounts of water. We will excavate and line one small pit to use for the drilling operations. Reserve’s drilling process normally allows us to recycle nearly 100% of the water we generate and re-use it on the next well site.
I hear a lot about hydraulic fracturing and how bad it is. Please explain
Hydraulic fracturing is being used by companies drilling the Marcellus and other shale formations. It involves the use of millions of gallons of water with some chemical additives. At present, Reserve uses a fracturing process used in the region since the early 1970’s called “gas frac-ing’ in which we simply use nitrogen gas and an acid. After a well is gas frac-ed, we open it up and ‘blow back’ the nitrogen and a minimal volume of spent acid into a blow-back tank. Initially, you will hear a low roaring sound emitting from the well site which settle down over a few days.
How are you getting the gas off my property?
Pipelines are necessary to get the natural gas from the wellhead to market. Per our oil and gas lease, Reserve has the right to construct a pipeline from the wellhead to move our gas production ‘off’ of the lease. Our production lines are normally buried 2” plastic lines and we try to choose routes which minimize site disturbance and damages (i.e., tree cutting)
What do I get out of all this?
WV law requires that Reserve compensate you for all surface damages such as damages to your land and damages for market value of crops (e.g., timber). Upon completion of reclamation activities, you will receive an Oil & Gas Reclamation Notice which essentially starts a 2 year clock to settle damages. If no agreement is reached, there is an arbitration provess to reach a resolution.
What about the timber & tree stumps?
As the well location is cleared, we will cut the timber and place it in an easily accessible pile. You may then immediately begin marketing the sale of your timber. The stumps and branches are placed down-gradient of the location for use as an erosion and sediment barrier. We are not permitted to bury the stumps.
Will you do a few small jobs for me?
Because of confusion generated in the past, Reserve’s contractors have been instructed to complete all work solely in accordance with WVDEP guidelines. Any extra work requires a written request from the Surface Owner and approval of Reserve management. However, we do routinely complete extra work in lieu of damages compensation.
What about my water?
Prior to drilling and as a baseline, Reserve is required to sample and analyze all active water sources within 1,000 feet of the proposed well. WV regulations also require the installation of a groundwater protection string of casing which is cemented in place. Furthermore, Reserve’s wells are generally drilled using high pressure air from top to bottom versus chemical laced drilling muds. However, should there be a problem directly linked to Reserve’s activities, you have the right to legal remedy.
Can I have free gas?
Prior to drilling, we have a legal title opinion completed on the tract to determine if there are any free gas reservations. If so, you will be entitled to free gas.
Will you install gates?
Yes, we normally install at least one gate on our well access roads to limit vehicle and four wheeler traffic.
After the well is drilled, how often will you be on my property?
Baring unforeseen circumstances, a ‘well tender’ will normally visit the well site 2 times per month. Typical shale wells will produce longer than 25 years.
Who owns Reserve and CSi?
Both companies are privately held and owned by David A. Freshwater and J. Scott Freshwater. The Freshwaters are life long West Virginia residents and have been involved in the oiil and gas industry for many years.
What does CSi do exactly?
CSi is Reserve’s primary contractor. CSi builds Reserve’s well locations, drills Reserve’s wells, trucks in the required materials, constructs the pipeline systems and finally, reclaims the well location. When required, CSi also mobilizes its well servicing rigs to timely address well production concerns. In other words, you are not only dealing with the potential well operator, you are also dealing directly with the people who will be completing the field work.
Who do I contact with problems?
Contact Reserve’s Land Manager at 304-927-5228.
Do you think you own all your minerals, maybe, maybe not?
Read this article of interest. – The Marcellus Shale
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