South Dakota Farmout - Horizontal Wells

State:
Multi-State
Control #:
US-OG-704
Format:
Word; 
Rich Text
Instant download

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

SOUTH DAKOTA FRACKING ? Wells in the Red River Formation do not require fracking because it is more permeable than unconventional oil plays like the Bakken Shale. Small-scale fracking has been used in gas wells and water wells for decades in SD.

When using your own well, you may need to obtain a water right permit and do ongoing water quality sampling depending on your type of water use. For information regarding when ongoing sampling is necessary, please refer to the information provided by the SD DANR Drinking Water Program.

Vermont, which has no known frackable gas reserves, banned fracking preventatively in May 2012. In March 2017, Maryland became the second state in the US with proven gas reserves to pass a law banning fracking.

Almost all of the state's crude oil production is concentrated in the northwestern corner of the state, where Harding County produces most of South Dakota's crude oil and natural gas. Since the 1980s, the state's annual crude oil production has ranged between about 1 million and 2 million barrels per year.

In 2014 South Dakota produced 179,800 barrels (7.5 million gallons) of crude oil. However, currently there are no fracking operations taking place in South Dakota.

The Newburg and South Westhope oil fields are located in T161-162N, R79-80W, Botti. neau County, north-central North Dakota, in the northeastern part of the Williston basin (Fig. I).

There are currently 11 frac crews operating in North Dakota, up from a low of just one during the pandemic price collapse but well below the numbers typical for today's high prices.

"However, reporting requirements differ across states, requiring considerable effort to make the data usable for analysis." North Dakota reported the highest spill rate, with 4,453 incidents, followed by Pennsylvania at 1,293, Colorado at 476 and New Mexico at 426.

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South Dakota Farmout - Horizontal Wells