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Legal and economic factors are also important in the selection
of a drilling site. For example, the company must obtain the legal right
to drill for and produce oil and gas on a particular piece of land.
Further, the company must have money to purchase or lease the right
to drill and produce. What's more, it must have money to pay for the
costs of drilling. The costs of obtaining a lease and drilling for oil or
gas on the lease vary considerably. Costs depend on such factors as
the size of the reservoir, its depth, and its location (offshore and
remote sites cost more to drill and produce than readily accessible
land sites). A company can easily commit several million dollars to
find, drill for, and produce oil and gas. The rewards, of course, can be
great, but so can the expenses.
The operating company takes several steps before telling the
drilling contractor exactly where to place the rig and start, or spud, the
hole. The company carefully reviews and analyzes seismic records.
Legal experts thoroughly examine lease terms and agreements. They
ensure that the operating company has clear title and right-of-way to
the site. Surveyors establish and verify exact boundaries and locations.
The company also confirms that it has budgeted the necessary drilling
funds and that the funds are available.
On land, operating personnel usually try to choose a spot
directly over the reservoir. With luck, the surface will be accessible
and reasonably level. They also try to pick a location that will not
suffer too much damage when the contractor moves in the rig. In an
area that is especially sensitive, the operator and contractor take extra
steps to ensure that as little harm as possible occurs. Offshore, the
operator hopes that the weather is reasonably good, and, if using a
bottom-supported rig, picks a spot where the ocean bottom (the mud
line) can adequately hold any rig supports in contact with it.
PREPARING THE SITE

On land sites, the operator hires a site-preparation contractor to
prepare the location to accommodate the rig. If required, bulldozers

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