What does reassigning oil and gas rights mean to you?
Friday, August 10, 2018
Chesapeake Exploration LLC recently announced its selling its rights to its Utica assets, including leases, to EAP Ohio, LLC, a company formed by Encino Energy and Canada Pension Plan Investment Board, according to Farm and Dairy.
With a background in the oil and gas arena, Encino plans to invest in continued Utica drilling activity.
Some lessors, who are impatient with Chesapeake, might welcome the assignment, but for others it raises concerns.
Incidentally, how you should react to the changes depends on the status of your lease. Learn how to determine your best course of action with tips from Alan D. Wenger, oil & gas lawyer in Youngstown, Ohio.
Learn more: Farm and Dairy > What does it mean to reassign oil and gas lease rights?
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.