Friday, January 24, 2020

"Rule Of Capture" -- Pennsylvania -- January 24, 2020

Anyone following this story knows that Texas and North Dakota have it right.

We've talked about this issue before. 

"Rule of capture" case in Pennsylvania.

From an August 2, 2011, posting:
The writer of the link from August 2, 2010, has raised a very interesting issue. This brings a whole new question regarding "how do I know a neighbor's well isn't taking oil from my site?"
The Texas Railroad Commission recently upheld / clarified a ruling that says a neighbor cannot sue for oil production / loss from a horizontal that comes right up to the section line.
The commission said that if the neighbor is worried about a neighbor's well taking oil from his/her site, he/she better drill his/her own well. One can argue that the effectiveness of fracking extends only about 500 feet (radius) from the bore hole, and that may be true of the enhanced recovery, but that question will probably be raised.
As noted earlier, the Texas Railroad Commission is similar to the NDIC in North Dakota, and most states follow the rules set by Texas regarding oil / mineral rights. 
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Clean Water Act

Meanwhile, Trump administration redefines jurisdiction of Clean Water Act.  This is another great case in which the former administration clearly overstepped any reasonable boundaries of common sense:
The new rule will apply federal regulation to territorial seas and traditional navigable waters, continuous (perennial) and intermittent tributaries of those waters, adjacent wetlands, lakes or water impoundments connected by surface flows to jurisdictional waters, and ditches that have been dug in wetlands or waterways.
The new rule will not apply federal controls to isolated lakes, ponds and wetlands lacking surface water connections to navigable waters, nor will they be applied to ditches outside wetlands or waterways. Federal regulations also will not apply to “ephemeral” streams, which flow only in the immediate aftermath of rain. Those will be left to states and local governments.
Frank Macchiarola, senior vice president of policy, economics and regulatory affairs at the American Petroleum Institute, issued a statement welcoming the new rule.
Under the former administration, based on my reading of the above, "the Obama interpretation" included trickles of water in my backyard after a heavy rain. 

Notes From All Over, Part 1 -- January 24, 2020

Wow, I'm in a great mood. Watching a sports documentary on all the snow at Jackson Hole for skiing this year. The skiers say they have never seen so much great powder.

Market: speaking of powder, for those who have keeping their powder dry for a market pullback should have had a great day today. I'm always fully invested but I did find some cash to buy some shares at a very nice price. Good luck to all.

Disclaimer: this is not an investment site.  Do not make any investment, financial, career, travel, job, or relationship decisions based on what you read here or think you may have read here.

Golf: Tiger Woods playing? I don't know. Let's see. Yes, there he is, tied for 18th.

Dividends: there are pros and cons with all investments. But, I suppose, one can argue, with regard to investments, there are worse things than dividends. But for those who enjoy dividends, two sites that are particularly helpful:
USPS prices increasing Sunday.
The price of a first-class stamp isn’t changing, but the prices for flat-rate Priority Mail packages are going up across the board. Those prices will rise by about 1.9 percent overall. The average Priority Mail Express price will increase 3.5 percent, and Priority Mail will increase by 4.1 percent.
Some examples:
  • Small flat-rate box: Up from $7.90 to $8.30.
  • Medium flat-rate box: Up from $14.35 to $15.05.
  • Large flat-rate box: Up from $19.95 to $21.10.
  • APO/FPO large flat-rate box: Up from $18.45 to $19.60.
  • Regular flat-rate envelope: Up from $7.35 to $7.75.
  • Legal flat-rate envelope: Up from $7.65 to $8.05.
  • Padded flat-rate envelope: Up from $8 to $8.40.

WTI Barely Holding At $54 -- January 24, 2020

The wells:

$54.191/24/202001/24/201901/24/201801/24/201701/24/2016
Active Rigs5664563847

No new permits today.

No permits renewed.

No permits canceled.

No producing wells (DUCs) reported as completed.

I guess a no runs, no hits, no errors kind of report. 

So, How Did This Happen? Closer Look At A New Case For Nine Wells In One Drilling Unit In The February, 2020, Hearing Dockets: New Operator In The Bakken -- January 24, 2020

Maroon Bells Partners: expanding the Bakken Core website.  From the website:
Our company was formed in 2018, but has been focused on the Bakken since the beginning of the boom in 2011. Our firsthand knowledge of the rock, the people, and the infrastructure that make up this play combined with our passion for the Bakken and over 25 years of engineering experience have produced a team strongly suited and ready to develop a Bakken asset. 
The team: 
  • J.D. Diamantopoulos: co-founder; 12-year career as a reservoir engineer with ExxonMobil/XTO; seven years specifically dedicated to the Bakken play;
  • Billy Beery, co-founder; 14 years in various petroleum engineering disciplines; XTO's senior drilling engineer, personally overseeing XTO's growth in activity from 2 to 16 rigs during the Bakken boom;
Maroon Bells? see this site and this wiki site.

Maroon Bells not yet listed as an operator over at the "well search" site at the NDIC.

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The Case
The February, 2020, hearing dockets posted here.

The case:
  • 28256, Maroon Bells Partners, Ross-Bakken, a 1920-acre unit; nine wells; sections 32/33/34-156-90; Mountrail County;
The graphics:



Closer Look At A Hess Case For 12 Wells In One Drilling Unit In The February, 2020, Hearing Dockets

The February, 2020, hearing dockets posted here. 

The case:
  • 28268, Hess, Blue Buttes-Bakken; twelve wells on a 1280-acre unit; sections 3/4-150-95; McKenzie County; there are already eleven producing wells on a 1280-acre unit, sections 3/4-150-95;
The wells:
  • 23457, 1,196, Hess, BB-Budahn A-150-95-0403H-2, Blue Buttes, t6/13; cum 309K 11/19;
  • 23455, 1,291, Hess, BB-Budahn A-150-95-0403H-3, Blue Buttes, t6/13; cum 348K 11/19;
  • 24409, 1,339, Hess, BB-Budahn A150-95-0403H-4, Blue Buttes, t6/13; cum 359K 11/19;
  • 24410, 56 (no typo), Hess, BB-Budahn A 150-95-0403H-5, Blue Buttes, t6/13; cum 204K 11/19;

  • 19737, 1,341, Hess, BB-Budahn A-150-95-0403H-1, Blue Buttes, t1/12; cum 469K 11/19;

  • 27505, 1,628, Hess, BB-Budahn A-150-95-0403H-6, Blue Buttes, t6/13; cum 362K 11/19;
  • 27504, 1,314, Hess, BB-Budahn A-150-95-0403H-7, Blue Buttes, t12/14; cum 247K 11/19;
  • 27503, 1,675, Hess, BB-Budahn A-150-95-0403H-8, Blue Buttes, t12/14; cum 302K 11/19;
  • 27502, 1,740, Hess, BB-Budahn A-150-95-0403H-9, Blue Buttes, t12/14; cum 278K 11/19;
  • 27501, 1,674, Hess, BB-Budahn A-150-95-0403H-10, Blue Buttes, t12/14; cum 316K 11/19;
  • 28161, 1,196, Hess, BB-Budahn A-LS-150-95-0403H-1, Blue Buttes, t12/14; cum 374K 11/19;
The graphic: