Oil and Gas at Your Door? (2005 Edition) - Earthworks

STAGES OF OIL & GAS DEVELOPMENT
• If dynamite is used during exploration, the “shot” holes may intercept the water table, and
water may begin to flow or seep to the surface. These flowing holes have caused problems
for some landowners, e.g., by making the land so wet that farmers were unable to cut
hay. 39 These holes need to be plugged from bottom to top. Ensure that the company properly
plugs and abandons these holes.
• Seismic work crews may generate different types of waste (plastic, paper, containers, fuel
leaks/spills, food and human wastes).
Seismic Exploration—Tips for Landowners
• Prior to any exploration, it is advisable to ask the company to show you, on a map and on
an aerial photograph of your property, where they intend to conduct their seismic operations.
To minimize damage, try to ensure that work is conducted as far away from surface
waters as possible. Ask companies to avoid steep slopes, as this could lead to erosion. As
well, request that the company avoid any areas of ecological sensitivity or importance to
your use of your land.
• Landowners may want to negotiate more payment and negotiate stronger surface-damage
provisions if they consent to 3-D seismic tests, due to a greater degree of surface disturbance
caused by this type of testing.
• It is advisable to get water wells tested before and after seismic testing, because seismic
shot holes can provide a path for surface contaminants to come into direct contact with
groundwater. The seismic explosions may also create pathways for water to flow to the surface,
which could decrease pressure in the reservoir and affect water quantity in water
wells. You can request that the company pay for these water quality and quantity tests.
• After the company leaves, do some ground-truthing: ensure that holes have been properly
filled; that no flags, pins or trash are left around to endanger livestock or wildlife; and that
water is not flowing into or from any holes.
• Review the state regulations governing exploration (contact state agencies to obtain copies
of any regulations pertaining to exploration). There will likely be a number of things that the
company is required by law to do (e.g., plugging of seismic holes; notification of exploration;
posting a bond to cover potential surface damages, etc.). The more you know, the more you
can ensure that the company is acting responsibly. For example, if notification is required
before a company can enter your property, you may want to use the opportunity to make
some requests of the company, e.g., negotiate a surface damage agreement, or right-of-way
(access) agreement. Chapter II provides some information on exploration regulations in
select states.
• In Wyoming, split estate surface owners have been placed in a lose-lose situation: if they
allow exploration companies to place explosives on their property, they risk losing their
homeowner’s insurance; but if they oppose the testing in order to maintain adequate insurance
coverage, they risk condemnation by the seismic testing company (under the eminent
domain laws in the State of Wyoming). For more information, see “Wyoming Landowners
Face Condemnation or Loss of Homeowners Insurance,” in Chapter IV.
You may want to get
your own survey
done.The company
may be more receptive
to your wishes if you
can demonstrate that
your preferred access
route or drill pad site
is a technically sound
alternative to the
company’s preferred
location.
It should be stressed that geophysical techniques and remote sensing cannot identify oil or gas
accumulations directly; they can only indicate the potential for reserves. The presence of oil and
gas can only be confirmed by actual drilling. So, if the preliminary tests indicate a high likelihood
of oil and gas, the company may decide to drill an exploratory well.
If the exploration activities have not provided sufficient indication of oil and gas accumulations, the
exploration program will likely come to an end, and the leases held in the area will likely be
dropped. 40 I-7