North Carolina Farmout - Horizontal Wells

State:
Multi-State
Control #:
US-OG-704
Format:
Word; 
Rich Text
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Description

Should any Party elect not to participate in any Horizontal Exploratory Well, other than the Initial Well proposed under the terms of the Agreement, the non-participating Party agrees to farmout to the participating Parties its interest.

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FAQ

Fracking was legalized in North Carolina with the passing of the Clean Energy and Economic Security Act in 2012.

Several areas in North Carolina are considered to have potential to produce oil and gas. The main area is the outer Coastal Plain. It contains a relatively thick pile of sedimentary rocks including some excellent trap or reservoir rocks, but source rocks may not be present.

Hydraulically fractured horizontal wells account for most new oil and natural gas wells. In 2016, hydraulically fractured horizontal wells accounted for 69% of all oil and natural gas wells drilled in the United States and 83% of the total linear footage drilled.

Fracking wells are often drilled down more than a mile (2500-3000 meters), far below the water table, and lined with layers of cement and steel to protect the surrounding land.

In North Carolina, assessment of potential shale gas resources is ongoing. The United States Geological Survey believes that there may be commercially viable reserves in portions of the Deep River Basin and the Dan River Basin. Deep River is the larger of the two.

Where Could Hydraulic Fracturing (?Fracking?) Occur in North Carolina? The map above shows the potential affected areas and include Sanford, Lee, and Chatham counties in North Carolina.

Fracking breaks up rock formations to allow oil and gas extraction. It also pollutes our air, water and climate and endangers wildlife and human health. Fracking has been documented in more than 30 U.S. states and is particularly widespread in North Dakota, Pennsylvania and Texas.

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North Carolina Farmout - Horizontal Wells