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Natural Gas Wells Info.
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<blockquote data-quote="Alberta farmer" data-source="post: 607140" data-attributes="member: 8978"><p>In Alberta the provincial government owns most of the mineral rights. The exception was every other section within 25 miles of the railroads which was given to the companies to pay for the line. The railroad companies in turn sold the land to recover their costs and for a very short time let the mineral rights go with it. Therefore a few people own their mineral rights...almost all of them owned the land between 1886-1907.</p><p>The going rate for royalties on "freehold land" is between 15% and about 20%. On top of that the oil company needs to negotiate a surface lease with the landowner. This includes an initial payment plus a yearly rental.</p><p>Conventional wells in central Alberta are usually 6000 ft. or shallower. Anything deeper is usually sour. The latest thing is coalbed methane which is shallow 700 ft. to 3000 ft. The coalbed wells don't produce a lot of gas per well but there is probably five times as much gas in the coalbed than all the conventional gas wells. This coalbed methane is very dry and needs hardly any processing. The intent is to eventually drill 16 to 32 wells on each section.</p></blockquote><p></p>
[QUOTE="Alberta farmer, post: 607140, member: 8978"] In Alberta the provincial government owns most of the mineral rights. The exception was every other section within 25 miles of the railroads which was given to the companies to pay for the line. The railroad companies in turn sold the land to recover their costs and for a very short time let the mineral rights go with it. Therefore a few people own their mineral rights...almost all of them owned the land between 1886-1907. The going rate for royalties on "freehold land" is between 15% and about 20%. On top of that the oil company needs to negotiate a surface lease with the landowner. This includes an initial payment plus a yearly rental. Conventional wells in central Alberta are usually 6000 ft. or shallower. Anything deeper is usually sour. The latest thing is coalbed methane which is shallow 700 ft. to 3000 ft. The coalbed wells don't produce a lot of gas per well but there is probably five times as much gas in the coalbed than all the conventional gas wells. This coalbed methane is very dry and needs hardly any processing. The intent is to eventually drill 16 to 32 wells on each section. [/QUOTE]
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