Oil exploration and production in LA

[Colton74]

I have read some good threads on the GT forum regarding oil and gas exploration and production. Here is a spot I never would have considered. I grew up with wells in all of my school grounds and literally hundreds within a 50 mile radius but to see this in these locations is interesting. We continue to develop here and as our population grows here in Alberta I suspect this will become a reality for more of us as well.



http://www.tv.com/web/uneven-terrain/oil-of-l-a--1521965/

Steve

 

[Kingman]

You should see the 'working' hoppers in my town....in the lots next to family homes.

 

[Empty Pockets]

I saw several of these during an unrelated 'tour' we took a few yrs back....the high school rig being one of them. But, this is the 1st time I've heard about the operation at Farmers Market. Wifey and I have been there before, and there's not even a visual hint anything like that is going on.

'Works for me.

 

[HHGT]

Check out Whittier Hills project. Major power plays at stake and all within a multi-million $ estate

 

[BlackICE]

Check out Whittier Hills project. Major power plays at stake and all within a multi-million $ estate

Sam maybe your house is on top of an oil well.

 

[HHGT]

Sam maybe your house is on top of an oil well.

Most Deeds restrict any mineral rights or natural water table access. The typical home owner owns the first 50'

 

[BlackICE]

Most Deeds restrict any mineral rights or natural water table access. The typical home owner owns the first 50'

Who owns the mineral rights below 50', the state?

I will have to read my deed. I doubt anything is on my land others than some dead bodies. :lol

 

[HHGT]

Who owns the mineral rights below 50', the state?

I will have to read my deed. I doubt anything is on my land others than some dead bodies. :lol

Mostly Oil companies. In SoCal it mostly belongs to Standard Oil aka Chevron.

 

[BlackICE]

Mostly Oil companies. In SoCal it mostly belongs to Standard Oil aka Chevron.

How did that come to be? Did the oil companies own all of the land before it was developed and then sold off lots to developers while retaining the mineral rights?

 

[HHGT]

How did that come to be? Did the oil companies own all of the land before it was developed and then sold off lots to developers while retaining the mineral rights?

That is exactly what I was told. Where we are at the land mineral rights were split between Oil Companies and Farm Land owners. One wanted the oil, the other wanted the water. Which one was/is more valuable? I guess it depends on your business.

 

[Colton74]

In Canada the Crown aka government owns below 12 inches I believe,unless your family has owned the land prior to 1905 or something. Superfly may know the exact particulars.

In my time I have only encountered one person that held the mineral rights. From what I could see neither them nor future generations had much to worry about financially.

 

[AJB]

I own mineral rights and hydrocarbon rights in Pennsylvania. Just completed my first Natural Gas/oil Well to 6600 Feet.. Perforating and fracturing completed. Working now on the pipelines. I plan to call it the "BenedictXL Pipeline" .

andy (ajb)

 

[twobjshelbys]

In Colorado water and mineral rights are separate from the land.

 

[donnymac]

Many states provide for severed surface and mineral estates. Oil and gas leases can get extremely complex. Ring me up if you have questions.

 

[BlackICE]

Since oil underground can spans many different lots owned by different people, assuming every owner had mineral rights, how does one know if someone is tapping into oil below their property either drawing from the same reservoir, or through a lateral well line? How is it decided who owns what?

 

[donnymac]

Known as the law of capture - first come first serve. It has been the foundation of many a lawsuit.

 

[donnymac]

Laterals are a different ball game. Routine if on a single O&G lease but complicated when crossing lease lines separating different leases.

 

[donnymac]

As to ownership, it is determined by a deed filed in county records and can be traced back to sovereignty. Multiple leases are often combined - known as pooling. Ownership/allocation is based on acreage amounts contained in a Proration Unit set by a regulatory agency.

 

[BlackICE]

Known as the law of capture - first come first serve. It has been the foundation of many a lawsuit.

So if you snooze, you lose!

 

[HHGT]

Little known fact that Saddam Hussein started cross drilling into Kuwaiti Oil Fields to pump & sell oil to finance his continuing war with Iran. When Kuwait called him on it, he invaded.