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Leasing Process

Entering into a partnership with the right operator to develop your oil and gas may be one of the most important decisions you make as a landowner.  We at Arsenal Resources strive to be the most responsible operator and are committed to safe and responsible development.

As partners with the community and landowners in the areas in which we operate, it is our responsibility to maintain the highest standards for health, safety and environmentally friendly operations because it’s the right thing to do. As our partnership with you and the community grows our goal is to build long lasting relationships.

If you own or think that you own oil and gas rights and you are interested in leasing with Arsenal Resources, please click this link and fill out your contact information.

A Landman will then contact you for additional information regarding your property and to answer any additional questions that you  may have regarding the leasing process.

  • Once your questions have been answered, Arsenal Resources may extend you an offer to lease your interest in the oil and gas.
  • Once the lease is signed, Arsenal Resources’ attorneys  will conduct a title examination in order to confirm your ownership interest in the oil and gas minerals.
  • The title examination may uncover title “defects” that require corrective measures, but an Arsenal Resources Landman will actively work with you to quickly and effectively remedy any identified defects.
  • Once ownership is confirmed and any title defects have been resolved, Arsenal Resources will issue any payments related to the lease.
  • If a well is drilled, you will then have the opportunity to receive recurring royalty payments based on a percentage of a well’s production.
  • Once a well begins producing, the lease is generally in effect for the life of the well.

What to Expect When We Are Active in Your Area?
In order for a company to explore for and develop minerals in a given area they must first, acquire the rights from the mineral owners, then they must apply for and be issued permits by the appropriate regulatory agencies.

Construction:
Once we have acquired the rights and have received permits the next step is to construct the surface facilities needed to accommodate the operations. Depending on the terrain and the size of the build the construction process can take anywhere from 30 – 120 days, and in some cases longer. As a nearby resident you could expect to see a light increase in traffic while we move in construction equipment and while the workers commute to and from the site daily.

Drilling:
After the well pad is constructed and prepared for drilling activity, the rig move will begin. Since the rig is rather large, it is usually delivered in sections, involving multiple loads, and requires the use of flaggers to make sure the roads are kept safe. Along with the rig long term living facilities such as trailers are delivered to house the workers. As a nearby resident you may expect to experience some traffic during the rig move in and some traffic coming to and going from the well pad on a daily basis to support the drilling activities. Once the rig moves in and gets set up there is usually 24-hour operations until all of the wells on a given pad are drilled. During the drilling process you may experience light and noise exposure, depending on your proximity to the well pad; keep in mind that this exposure is temporary.

Completions:
Otherwise known as “fracking”, “fracing”, or stimulation; completions is the step in the unconventional mineral exploration process that comes after drilling. The completions step is when water and sand are pumped into the well in order to stimulate the formation. During the completions stage of the process, nearby residents may experience one of two things:

  • If there is a water line (temporary above ground or buried) designed to transport water to the well site the landowners will experience a slight uptick in traffic to and from the pad as personnel and special equipment are needed on the site.
  • If there is no water line to transport the water to the well site the water will then need to be trucked. In this case nearby residents can expect to see a significant number of water trucks coming and going to the well pad.
  • The completions process will typically take about a month for the wells on one well pad.

Production:
The production part of the process is the last major portion of the process and involves flaring the wells when necessary and connecting the wells to the pipeline in order to get the product to market. This process typically involves light machinery and to get the well pad ready for the production stage of the process. During this stage nearby residents may experience a slowdown in the activity surrounding the site and, eventually, the site will only require periodic checks while the site is managed remotely.

The important thing to remember about our surface operations, is that they are temporary.

If you have questions or concerns regarding our operations in your area, please contact us.

If there is an emergency, please call 911.