NATURAL GAS. 
9 
for each producing well, in their attempt to provide as far as possi- 
ble continuity of service to their customers. However, this average 
of 313 acres will vary with different fields and localities. In West 
Virginia the United Fuel Gas Co. in 1917 carried 1,252 acres to the 
producing well, as shown on page 24. From this* it is- evident that 
not every farmer — that is, landowner — can have a producing well, 
even though his farm may be located in the center of producing 
territory. While natural gas wells are frequently drilled on tracts 
of less than an acre in area, by small producers intent only on get- 
ting the gas out in the fastest possible manner, without any regard 
to future service, the future continuity of service to' the gas-using 
public is possible only by the carrying of reserve acreage for future 
drilling operations. 
DISTINCTION BETWEEN ACREAGE LEASE RENTALS AND GAS WELL ROYALTIES. 
The general custom of the natural gas business is to pay a lease 
rental based either directly on indirectly on the acreage of the tract 
that is controlled. The natural gas acreage statistics of the United 
States Geological Survey for 1916 show that — 
5 per cent of acreage is owned in fee. 
8 per cent of gas rights are owned in fee. 
87 per cent of gas rights are merely under lease. 
This acreage rental covers a twofold object — 
1. Gives the gas company the right to enter the particular tract 
of land for exploration purposes. 
2. Pays the farmer — that is, landowner — for any gas that might 
be found on such tract, even though such gas would be removed by 
drainage through to wells located on adjacent tracts. 
Well royalty is merely compensation for particular wells drilled, 
and replaces the acreage rental that prevailed prior to the drilling 
of the wells. The well royalty for a particular tract is usually larger 
than the aggregate of the acreage rental because of the damages and 
inconvenience to the farmer in having wells and their appurte- 
nances located in his fields. 
It is not ordinarily appreciated that the total amount of money 
paid for “ acreage rental ” is larger than for “ well royalties.” Thus, 
the acreage rental of the United Fuel Gas Co. for the year 1917 was 
80 per cent of the total annual sum spent for gas rights. 
FUNDAMENTAL CONCEPTION OF GAS. 
Gas is a fluid composed of a large number of molecules which 
are vehicles of energy continually in motion and having an inherent 
tendency to get farther and farther apart. The range of motion 
