Hi everyone,

Both my HS properties have been force pooled. The larger tract is in one of two newly force pooled units of 640 aces. The smaller tract is in one of six new units that were originally proposed as 720 acres, but I've since gotten notice of an amended application to increase the unit size to 955 acres. Obviously, this decreases my percentage in the unit, so my instinct is to not be pleased by this.

Is there any potential upside to having a unit's size increased? (For example, might there be more wells drilled in it?)

Is there a relationship between depth of proposed wells and unit surface area? Why do some units get upsized in surface area, but not adjacent units?

Thanks,
CaddoKid

Views: 127

Reply to This

Replies to This Discussion

Applications to force pooling and integrate separately owned tracts are initiated by oil companies and should benefit them, not the mineral rights holder. The landowner's interest will be in a much larger tract, there is the potential for conflict in signing leases because there will be more parties involved, and land could be held for many years by just one well. Even if current applications don't involve your property, a decision to approve these applications will set a precedent for future decisions. Interested parties should write to the the Commissioner of Conservation in Baton Rouge to express concern over this issue and attend hearings. Remember, the oil company will be represented at the hearing by their engineers and attorneys supporting their case. These boundaries have been existance for many years, so to make changes now appears dubious.
The Commissioner, Jim Welsh, is appointed by the governor. Jindal did not appoint Welsh, but retained him when he took office. Governor Jindal needs to hear from property owners regarding this issue. It is a bad deal for those caught up in the effort to create 920 acre units and there appears to be no geological basis for it.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service