Frequently Asked Questions
Q: Who is Four Star Resources, LLC?
BARNETT SHALE GENERAL QUESTIONS
Q: What exactly is the Barnett Shale?
A: The Barnett Shale is a geologic formation composed of sedimentary rock. The Barnett is black shale that was formed millions of years ago in a deep sea environment. The natural gas is actually generated from the material in the rock itself, much like gas from coal. The Barnett Shale formation in the DFW area has already produced nearly 3 trillion cubic feet of natural gas and it is calculated that it may be capable of producing upwards of 30 trillion cubic feet of natural gas in its lifetime.
Q: Where is the Barnett Shale?
A: The Barnett Shale in the producing area lies underground at an average depth of 6,000 to 8,000 ft. The formation is estimated to stretch across 20 counties in north central Texas, covering approximately 5,000 square miles. Our Main focus has been in Johnson and Tarrant County.
Q: Will the drilling affect my foundation/pool.
A: No it will not. Drilling is no more disruptive than other temporary construction projects on the surface, and below ground, the wellbore will be safely 6,000 - 8,000 ft below your property.
Q: How are drill sites selected?
A: Drill sites are selected by the engineers and geologists responsible for well planning. Occasionally in highly urban areas there are very few choices suitable for drilling. Ideally you want the best location considering all of the geological, geophysical and cultural information available. City regulations mandate many items including the proximity of a drill site relative to a residence or place of business. For the most part you will not be involved in the drill site selection unless it is actually on your property.
Q: How disruptive will the drilling be?
A: Aside from the physical appearance of the rig for a few weeks, few residents will notice the presence of a gas well after completion. City drilling ordinances have placed certain noise and light restrictions on rigs so as to create the least disturbance to most residents in the immediate area. Less noisy, although more expensive rigs are often chosen for urban drilling if available. However intrusive drilling may be, Oil and Gas production will ultimately benefit the community as it will bring in significant revenue to the community over a long period of time.
Q: How long does the drilling process take?
A: Your average drill time start to finish will usually last from 6-7 weeks. This entire process includes: clearing a pad site, erecting the rig, drilling the well, “fracing”, and installing production equipment. Actual time spent drilling only takes 2- 3 weeks. In comparison to building other structures such as homes, stores, etc. drilling a well takes a fairly short period of time.
Q: What are mineral rights?
A: Mineral rights represent the ownership and/or rights to extract minerals from beneath a property. Natural Gas, Oil, Coal, and Gold are examples of minerals. Mineral rights are treated as real property and can be sold or leased. Mineral rights can be severed from the surface estate. In some cases the current surface owner may not own the mineral rights under their property. In these instances, a reservation or sale of mineral rights was made prior to their purchase. A surface owner with no mineral rights can not usually prevent the mineral owner from “reasonable” use of the surface in order to develop the minerals, since mineral rights supersede surface rights.
Q: How do I know if I own mineral rights on my property?
A: Simply owning property does not necessarily mean you own the mineral rights. A previous property owner may have retained or sold the mineral rights. Running a title search back in time will disclose any transactions regarding your property. Often, mineral reservations involve only a percentage of the minerals. In any case, it is not something you can do without assistance. A thorough title review is usually done before the payment of lease bonus, prior to drilling the first well and again prior to paying royalty.
Q: What is an Oil, Gas and mineral lease?
A: An Oil, Gas and mineral lease is a contractual agreement which gives the energy company the right to explore and develop the mineral owner’s minerals. When a mineral owner enters into a lease agreement they will usually receive “bonus money” soon after signing the lease. Once their minerals are participating in a producing unit the mineral owner will receive revenue from the gas well based on their net mineral acreage in the unit as a percentage of the overall acreage in the unit, known as “royalty”. The lease will remain in effect as long as there is production from the unit. If no wells are drilled, the lease will expire after the primary term as stated in the lease. Some leases contain options to extend the term in return for the payment of rental.
Q: What’s the difference between leasing and selling mineral rights?
A: Leasing is an arrangement between you, the lessor, and the energy company, the lessee, where you are permitting the Lessee to develop and extract the minerals (natural gas) from your property for a share in the proceeds. Leases will eventually expire. Selling minerals is a deeded transaction that is forever, unless repurchased. Mineral rights can be sold as a percentage of the whole, or in their entirety. Mineral sales appeal to individuals that are interested in receiving value now for production that may (or may not) occur in the future.