What to Expect When a Company Comes on Your Land

To learn about the basics of Coalbed Natural Gas development – please view our brochure, Start to Finish Brochure (186).

If a company has secured the rights to drill for coalbed natural gas on your land, you have rights and expectations for their conduct and activities.

When a company would like to drill on your land, the first step is that the company or their representative should contact you regarding surface owner agreements. Once you’ve been contacted and the surface owner agreement (see below) is reached, the site is surveyed and staked out. Next, a drilling rig is set up and the well is drilled. Pumps and electricity are installed and reclamation of unused areas occurs.

Small volumes of gas (as approved by the Wyoming Oil and Gas Conservation Commission or the Montana Board of Oil and Gas Conservation) may be vented until commercial production is established. Gas is then transported to the meter house and compressor station. The pressure involved in the transportation of the gas is very low – approximately 5-10 psi (pounds per square inch). Water is piped to approved discharge points including reservoirs, stock tanks, water impoundments, and/or existing creeks, rivers, drainages, etc.