Michigan Farmout - Horizontal Wells

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Multi-State
Control #:
US-OG-704
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Word; 
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Description

Should any Party elect not to participate in any Horizontal Exploratory Well, other than the Initial Well proposed under the terms of the Agreement, the non-participating Party agrees to farmout to the participating Parties its interest.

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FAQ

We analyze data from up to 19,500 wells and find that median decommissioning costs are roughly $20,000 for plugging only, and $76,000 for plugging and surface reclamation. In rare cases, costs exceed $1 million per well.

A horizontal well is a type of directional drilling technique where an oil or gas well is dug at an angle of at least eighty degrees to a vertical wellbore.

What is the average depth an oil or gas well is drilled in Michigan? 4,305 feet is the average depth of a well in Michigan.

Horizontal wells are used in situations where the reservoir is abnormally shaped, or excavation is impossible. Horizontal drilling is preferred over vertical drilling due to its ability to access subsurface reservoirs that are not accessible from directly above.

And our youngest family members are the most vulnerable to all of these impacts. Public health experts recommend 3,200 feet as the minimum safe distance between neighborhoods and drilling.

As a general rule, plan on staying at least 200 feet away with any structures. There are active wells drilled in cities within a few hundred feet of homes.

301), regulating the spacing and location of oil and gas wells, specifies that there must be a 300-foot setback between wells and residential property, although the supervisor of wells may grant some exceptions.

Fracking wells are often drilled down more than a mile (2500-3000 meters), far below the water table, and lined with layers of cement and steel to protect the surrounding land.

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Michigan Farmout - Horizontal Wells