# Anyone have a natural gas well on the homestead?



## earthkitty (Mar 3, 2011)

We are tossing around the idea of having a natural gas well dug. There is underground gas in our area, and the idea of having endless free heat is appealing of course. Hubby was talking to a guy around here who has one, he heats a giant greenhouse as well as his other buidlings with it, and HE SAYS it doesn't cost him a dime. Is that true?

Does anyone here have one? Are there any pros/cons?

Can you give me a range of what they cost to install? $5,000 or $25,000?

Are they safe? I have this image in my head of a giant gas explosion!!!!

Obviously I can call a company who installs them, but I wanted to see if I could get real life opinions before I talk to a sales guy.


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## Alice In TX/MO (May 10, 2002)

If you don't have one, then there's probably NOT a commercial reservoir (underground formation with hydrocarbons) on your property. You'd already have been contacted by a land man, trying to write a contract for an oil/gas company to drill there.

This isn't a do-it-yourself project. You have to have professional geology work done (which they won't do without being paid by an oil/gas company), contracts/leases, and then the HUGE expense of the drilling rig, rig hands, engineer, etc etc etc.

Companies do not "install" gas wells. They drill for oil/gas if there's a chance to make a profit. *Sometimes* the landowner gets free gas, along with a percentage of the net from production. You don't get all the money OR gas.


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## Darren (May 10, 2002)

I imagine a shallow well, 3,000 to 5,000 feet, will cost $500,000 to $1,000,000 to drill. You need to own the mineral rights if you're planning to do that. The previous post had a lot of good info.


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## earthkitty (Mar 3, 2011)

Alrightee, I feel kind of dumb!!! Thanks for the info, glad I didn't call anyone!


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## Darren (May 10, 2002)

You're not dumb. Most folks are familar with drilling a water well. Oil and gas wells involve different rigs to get to the right depth and all of the other associated equipment such as high volume, high pressure compressor skids; the need for lots of water and a temporary lined pond for the tailings; etc. 

Generally speaking it takes about two weeks of drilling three shifts to get to the right depth for a shallow well. You've got at least four people on the rig not counting the tool pusher. Plus you have all the others hauling materials in, the well loggers which will determine at which depths the gas is available, plus the equipment to capture the oil that is produced, etc. etc.

That doesn't include building the road to and the location to setup the rig.


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## Sanza (Sep 8, 2008)

I've got a gas well here but it's not mine and do not get any free gas from it, they just pay a bit of rent every year for the area it sits on.


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## earthkitty (Mar 3, 2011)

Darren said:


> You're not dumb.


And you are very kind. I try to do a bit of research before I say anything. This website makes a gas well sound like a self sufficient possibility...

http://www.yoakumdrilling.com/naturalgas.html

His was the _only_ site I found, which made me wonder. That is why I asked here first.


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## Alice In TX/MO (May 10, 2002)

Do you own the mineral rights on your property?


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## texican (Oct 4, 2003)

earthkitty said:


> Can you give me a range of what they cost to install? $5,000 or $25,000?
> 
> Are they safe? I have this image in my head of a giant gas explosion!!!!
> 
> Obviously I can call a company who installs them, but I wanted to see if I could get real life opinions before I talk to a sales guy.


Shallow wells around here start in the 800K range... on up to +5M.

It is rare for a natural gas well to explode... at least in a gigantic fireball type of explosion... so many safety regs and equip that has to be installed...

If you find a 'sales guy' willing to drill you a gas well, run away.

You have to have permits issued by the state, and own all the mineral rights within the unit.

If there was economically produceable gas, there'd probably already be a well on your place. I have read where a company will sell or give away an old unit, that costs more than it produces... in TX, you have to plug the well... you can't just 'abandon' it... and plugging starts around 10K and goes on up, depending on local factors.

I have a natural gas well on my place... it's been producing since the 50's, and the original lease allows one home to have unlimited free gas.

It's a blessing and a curse. I have unlimited free energy. I also have half an acre of well, compressor, tanks, road, etc. that I'll never be able to use for anything.....


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## Alice In TX/MO (May 10, 2002)

Texican, I'd trade the loss of a half an acre for free natural gas. They can drill in my back yard ANYTIME. I'll move the swingset.

Hubby's an registered petroleum engineer, and we've already looked at our geology. It's not happening.


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## fordy (Sep 13, 2003)

earthkitty said:


> Alrightee, I feel kind of dumb!!! Thanks for the info, glad I didn't call anyone!


..................Actually , having your own gas well is a possibility ! West of Wichita Falls , Tx in and around a small community called Electra,tx there are very shallow producting oil wells which are mostly less than 1,000 feet deep . This production zone is called the "Gunsight" zone , these wells have been there for many years , now when first drilled there was probably some natural gas present along with the oil , but it has probably been flared and dissipated over the years . For oil\gas too remain trapped there , usually , there has to be an Impervious layer of hard rock above and below the oil\gas bearing zone too keep it from migrating through fractures in the harder rock . 
...................The reason I mention this is because a water well drilling rig is perfectly capable of drilling a shallow Gas well just as it is capable of drilling a shallow water well , albeit quite a bit more expensive , probably Prohibitively so . Three factors are required , the cash , ownership of the minerals , and a competent driller . Keep hoping and doing your research ! , fordy:flameproofundies:


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## yikes (Jan 23, 2011)

Earthkitty: yes please keep researching. My family poked a pipe in the ground and lit the gas with a match. The whole town did this. Another town started up called :Gas City. Many glass companies started up around there. (Ball Brothers was one). Eventually the gas ran out. But there are still pockets of gas. There could be some where you are.


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## earthkitty (Mar 3, 2011)

Alice In TX/MO said:


> Do you own the mineral rights on your property?


Yes, we do.


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## earthkitty (Mar 3, 2011)

Well, the reason I had thought it possible is I looked at the oil/gas rig locations in my state, and they are all around me. One of the properties we looked at before we bought this one was selling with the current owner retaining the mineral rights...I thought that was crazy! Who would buy a property without the rights???


Hubby has a couple of friends who are geologists; I think I'll have him see what they think.


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## Guest (Apr 16, 2011)

There is a natural gas well on my property & I get unlimited free gas from it . My father-in-law owns the mineral rights & gets a royalty check from the gas the well produces . In my area it is common for the landowner to get free gas no matter who owns the mineral rights . It is also common for the landowner that doesn't own the mineral rights to get limited free gas , usually for the primary residence on the property . When my father-in-law leased the drilling rights he reserved unlimited free gas for the property as at the time he owned the property . I bought my property from him so he gets the royalty check & I get the gas . As far as I'm concerned it's a blessing to have the free gas . I have 74 acres & the space the well takes up doesn't bother me one bit .


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## Sanza (Sep 8, 2008)

Man are we getting ripped off up here then since there's no free gas from any wells!


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## Alice In TX/MO (May 10, 2002)

Well, no, you aren't getting ripped off. The free gas is actually not the norm, but the exception.

Plus it all depends on your contract. If it's not in the contract, you can't expect to get it.


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## mrswright (Jan 10, 2009)

We have a gas lease, but won't have a well we will be in a pool from a neighbors well. We have an old gas well on the property that years ago was used (we did not owe then). When the gas company came to lease our land they said if the well was in operation now they could not lease from us. In our lease there is a clause that says if they drill a well you get so much gas per year but it is paid to you not the actual gas.


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## Evons hubby (Oct 3, 2005)

We have a gas well here on the place, and use it for heating and cooking. Its been a real asset to us. The well was drilled and developed by a fly by night oil company about 20 years ago who had a two year renewable lease. Since they were crooks and had oversold shares by about 300 percent and couldnt afford to actually sell any gas they abandoned the wells. The mineral rights reverted to the landowners and we wound up having a really good well already drilled, cased and capped for free. It cost us a couple thousand bucks getting it piped 1500 feet, including regulators and fittings, to the house and shop, but its been well worth it.


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## sticky_burr (Dec 10, 2010)

well the gas has to go thru 12 middle men and mark ups first . i never knew why they didnt catch the flares or used to make electricity


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## Michael W. Smith (Jun 2, 2002)

earthkitty said:


> One of the properties we looked at before we bought this one was selling with the current owner retaining the mineral rights...I thought that was crazy! Who would buy a property without the rights???


Why would anyone WANT to sell the mineral rights with the property - especially if there is already a producing gas well on it that produces monthly royalty checks?

Around here sometimes you can buy land with the mineral rights, and sometimes you can't. I'm sure anyone who sold land here in the last 10 years with the mineral rights would be kicking themselves now. 

We are in the midst of the Marcellus Gas location, and some people are getting gas leases that pay them up to $3000.00 per acre bonus for the right to drill, this is NOT selling the land, only letting the gas company have the right to drill. And most leases are for 10 years, so if the company doesn't drill a well within that time, in another 10 years you can sell the drilling rights again. And if the company does drill, most people are getting a royalty check of at least 15% of the total amount of gas sold. 

We have an old well on our property that was drilled back in the 20's. It supplied natural gas to the whole little town by us until it became "unprofitable" for the company and they sold the gas well back to the landowner - my wife's Great Uncle. He used that free gas to heat the house as well as brood 20,000 meat chickens every 8 weeks. I'm guessing the well reverted back to them in the 50's or before - and we still heat the house with that gas well!!

With us owning the well, we are aware that if it ever needs plugged, that will be at our cost. But I'm assuming the cost of heating a house for over half a century, will more than pay to plug the well.


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## fordy (Sep 13, 2003)

Michael W. Smith said:


> Why would anyone WANT to sell the mineral rights with the property - especially if there is already a producing gas well on it that produces monthly royalty checks?
> 
> Around here sometimes you can buy land with the mineral rights, and sometimes you can't. I'm sure anyone who sold land here in the last 10 years with the mineral rights would be kicking themselves now.
> 
> ...


...............10 year lease is WAY Too long in my opinion , 5 at the most !! That gives the oil co. way too much time and leverage too drill ! All they need is one well too hold the whole lease by production . , fordy:cowboy:


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## texican (Oct 4, 2003)

fordy said:


> ...............10 year lease is WAY Too long in my opinion , 5 at the most !! That gives the oil co. way too much time and leverage too drill ! All they need is one well too hold the whole lease by production . , fordy:cowboy:


3 years is pretty standard around here... I'd never lease for ten years, without some serious 'incentive'. Pugh clauses and vertical Pugh clauses really protect the mineral owner from the dreaded "held by production' clauses...

Only silly people sell their land with minerals (A fool and their money is soon parted...) if there's even the remotest possibility of minerals being discovered/exploited. Owning mineral rights is a close to a license to print money that exists. Owning the dirt, you pay numerous property taxes, regardless of how much the dirt 'makes' you in a year. Owning minerals costs you zero, tax wise, until the minerals are actually produced (and then become royalties)... paying taxes on something that's actually producing mailbox money is not a burden...

In this part of the world, it is a rare tract where you can actually buy land of any sort, with minerals (unless your family already). One HT member here actually got land nearby with minerals... and leased those minerals during the boom... sure the sellers are kicking themselves royally right now!


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## Evons hubby (Oct 3, 2005)

texican said:


> Only silly people sell their land with minerals (A fool and their money is soon parted...)
> In this part of the world, it is a rare tract where you can actually buy land of any sort, with minerals (unless your family already). One HT member here actually got land nearby with minerals... and leased those minerals during the boom... sure the sellers are kicking themselves royally right now!


That is one of the reasons I would never buy land without the mineral rights included. The other reason is that someone else can come onto your property at anytime and drill, mine, or otherwise destroy anything I have on the surface to get "their" minerals. Why would anyone in their right mind purchase a piece of land without getting the mineral rights with it?? Without the mineral rights, you dont really own whats on the surface either. :shrug:


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## a105w (Mar 27, 2016)

earthkitty said:


> We are tossing around the idea of having a natural gas well dug. There is underground gas in our area, and the idea of having endless free heat is appealing of course. Hubby was talking to a guy around here who has one, he heats a giant greenhouse as well as his other buidlings with it, and HE SAYS it doesn't cost him a dime. Is that true?
> 
> Does anyone here have one? Are there any pros/cons?
> 
> ...


i drilled a well in summer of 2021, we went down 3500+ ft drill cost was about 60,000. which 60% is tax deductible


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## RDS123 (4 mo ago)

Evons hubby said:


> We have a gas well here on the place, and use it for heating and cooking. Its been a real asset to us. The well was drilled and developed by a fly by night oil company about 20 years ago who had a two year renewable lease. Since they were crooks and had oversold shares by about 300 percent and couldnt afford to actually sell any gas they abandoned the wells. The mineral rights reverted to the landowners and we wound up having a really good well already drilled, cased and capped for free. It cost us a couple thousand bucks getting it piped 1500 feet, including regulators and fittings, to the house and shop, but its been well worth it.


Where would I find someone to do this? What type of company? We have an old walk on out property that has been emitting gas for years. We would love to use it. We are in NE OK?


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## Evons hubby (Oct 3, 2005)

RDS123 said:


> Where would I find someone to do this? What type of company? We have an old walk on out property that has been emitting gas for years. We would love to use it. We are in NE OK?


I got hold of an oil well supply company that furnished me with needed pipe, fittings, Regulators etc, then a friend with a ditch witch to bury the line from well to house. I did the assembly work myself.


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## a105w (Mar 27, 2016)

earthkitty said:


> We are tossing around the idea of having a natural gas well dug. There is underground gas in our area, and the idea of having endless free heat is appealing of course. Hubby was talking to a guy around here who has one, he heats a giant greenhouse as well as his other buidlings with it, and HE SAYS it doesn't cost him a dime. Is that true?
> 
> Does anyone here have one? Are there any pros/cons?
> 
> ...


hello, i had a well drilled summer of 2021, when down 14500 feet, hit good gas, ran lines to home site and to cabin, well cost $63,000 lines cost more, 60% of cost is tax rebait, have 60kw gen. will heat, and light property of my well.frist thing you need to do is find rock doctor. [geolagest] to plot your well.and a good driller


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