Replies to This Discussion

Permalink Reply by Rick on August 26, 2008 at 6:51

These are some great points everyone and as this discussion builds more will come out. It is blantly obvious that alot of thought has gone into some of this and there are alot of issues that need addressing. I suggest that as the post builds, any reoccuring strong points that don't have a chance to be brought up in a brief KSLA forum should be organized and go to the Commissioner at his office in Baton Rouge. Their is a commission office in Shreveport too and I think KB's request for local office use is very valid and should be done.

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Permalink Reply by Geo-Bcf on August 26, 2008 at 7:05

What is the Office of Conservation doing about the timely release of logs and tests on HS wells into the public domain. This may have been addressed already.

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Permalink Reply by reg on August 27, 2008 at 4:32

This is important. This information is being used by landmen to swamp an area, but the landowner does not have access to this information. Why can't a landowner have access to this information --before they lease. People are being told that they are out of HS area or on the edge of it, but the logs surely state otherwise.

The release of this information would put us all on equal footing.

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Permalink Reply by Tim Boyet R3 on August 26, 2008 at 8:02

My question is why does the state allow these companies to come on your property within 1 month of the lease expiring and rush to start a well. The way I look at it the company has had 3 years to do the work and now they wait til the last minute so the landowner can not renegoiate a new lease.

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Permalink Reply by M. Mcwilliams on August 26, 2008 at 9:40

I'll be pro-industry here. A term is a term - no difference in a race to beat the end of the term and a race to beat any other prescriptive period. The original poster said "the company has had 3 years to do the work and now they wait until the last minute". Well, they had 3 years. If they don't spud the well until day 364 of the 3rd year, they have done it within 3 years. What point would be a 3 month delay on permitting a new well? The parties contracted for three years. Just because the company didn't screw up and forget about their lease doesn't mean they don't get the right to take advantage of the three year term.

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Permalink Reply by reg on August 27, 2008 at 4:33

You might not want a law on this. You just need a good attorney to draft your lease.

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Permalink Reply by P.G. on August 26, 2008 at 14:49

That's a good question.
The real estate profession was regulated for about the same reasons. The sophisticated taking advantage of the unsophisticated so the state create the Real Estate Commission to regulate the industry to protect the public. Shouldn't it be time to do the same when the O&G industry must interact with the public. Perhaps have disclosures and explanations of the clauses, explain rights, etc., and exactly what impact it will have on their land, possibly forever. Leads to where the landowner can get proper information. Maybe a cooling off period. It's not reasonable to expect a person not in the O&G business to have such knowledge. Some rules to level the playing field are necessary.

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Permalink Reply by reg on August 27, 2008 at 4:39

I think a penalty for failing to report to sonrise should be a one percentage increase in the royalty for each day the report is late.

If report due on 1st and filed on 11th, then each royalty beneficiary in unit gets a 10% increase in the royalty clause in their lease. So if at 25%, you would be at 27.5%.

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Permalink Reply by Hush Puppy on August 26, 2008 at 14:10

There is a map that was supposedly generated by the Office of Mineral Resources that shows the Haynesville Shale to extend across Northern Louisiana from Caddo & DeSoto Parish all the way to Caldwell Parish. It probably includes 15 or 16 parishes and was published by the Shreveport Times and in other places. What is the origin of this map?
Is it trying to say that the Haynesville Shale is simply present within this area?

It seems to imply that this entire area will be productive from the Haynesville Shale. If that is true, on what basis?

To me, just because the Haynesville Shale is present, that does not necessarily mean that the deposition, lithology, and techtonic forces that created the trapping environment in Caddo, DeSoto, & Bienville Parish have also occurred in the parishes lying East of the discovery wells.

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Permalink Reply by Hush Puppy on August 26, 2008 at 15:40

Has any of our governmental agencies considered contacting the AAPL to see what educational or other services it could provide to both the public and the regulatory agencies within our State?

Many of us professional landmen are members of the American Association of Professional Landmen (AAPL). A part of that includes a Code of Professional Conduct to which we, as members, have voluntarily subjected ourselves.

I have not seen anything where educating landowners has even remotely suggested using that organization's vast knowledge of Oil, Gas and Mineral Leases. I am also amazed at the number of "landmen" involved in the Haynesville Shale area who are not members of the AAPL.

If I were a landowner, I would want to deal with the most educated and informed landman that I could find. We can be educational and informative to assist the landowner in making a decision that could be beneficial to both the Lessor and Lessee.

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Permalink Reply by Cillian on August 27, 2008 at 5:18

KB, I understand your cynicism. But just any good journalist won't generally agree to an interview with caveats on what questions can be asked, I also cannot demand the interviewee answer certain questions the way I want them to or not at all. I can only do my part to ask the questions and push for better, clearer answers when necessary. I promise to do that within the time allowed. Any questions we do not get to will also be pursued until we get the answers. With such a great response from you all, there are lots of questions here, and I am working on consolidating them into a manageable list.

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Permalink Reply by Murray Stacy on August 27, 2008 at 3:27

How does the Office of Conservation address and regulate noise issues associated with drilling and processing of natural gas (gas compressors)? In Texas (Barnett Shale), I believe local governments regulate noise; each community establishes its own noise mandates, and noise-related regulations vary widely from community to community. It this the same for Louisiana?

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