Replies to This Discussion

Permalink Reply by bullbayou on August 28, 2008 at 2:38

Hey Jack, oil companies aren't stupid. They are not going to perforate the CV if they don't have it leased. They are applying for CV units also just to save money and do it now just in case they see something in the CV going thru it. But if you are unleased in the CV, I would imagine they will come to you for a lease on the CV before they drill a well, even if it is to the Haynesville. But don't expect big bucks for that lease.

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Permalink Reply by Grice on August 28, 2008 at 2:55

I just read over some applications, and it seems they have to identify which zone they intent to work in each section. While his section may be unitized with other section(s), only if they intend to work the CV in his section, would the permit effect him directly. The permit will allow them to enter the CV, but only in the sections noted in the application, not all of the sections.

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Permalink Reply by Jack Blake on August 28, 2008 at 3:10

I've been told by an old timer that they drilled a well on my land about 40 years ago but plugged it because it was gas and not oil(said it took years for the pasture to grow back where they had their pits). Same old timer told me they drilled one about 300 yards off our property about the same time and plugged it as well, because they hit gas. The shale may be full of gas and what they hit way back in the day may have migrated up (I'm sure they did not go deep).
I was thinking the same thing as far as them unitizing the CV in case they see something when they are passing through it heading to the Haynesville and it not being worth as much as the Haynesville.
When I got the letters several months back about unitizing the sections close to me it was just for ther Haynesville.
The letter we just got for ours and 5 other sections had two plats (one for the Haynesville and one for the CV). The letter with the plats said they were basing the CV and Haynesville depths on a Phillips Eline log of Martin "B" No. 1 well in T 11 N, R 10 W. (I'm in T 10 N, R 11 W).
I'm thinking of finding out whoever holds my lease now (probably Shell, but maybe still CHK) and contacting them. I wonder what our 20 acres of surface to the top of the Haynesville(in other words-surface to the the base of the CV) is worth?

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Permalink Reply by Margaret Wren on August 28, 2008 at 3:11

they will drill w/o everyone leased. They drilled in my section in the fall of 98 and I didn't sign a lease until 12 of 99.

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Permalink Reply by Margaret Wren on August 28, 2008 at 3:37

I had an attorney that helped me, we got $350.00 an acre bonus and 25% royalties with a pugh clause.

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Permalink Reply by gardnhoser on August 28, 2008 at 3:55

Why would you not lease your cotton valley rights with your haynesville rights if you could negotiate a royalty higher than 25%. No company will give you higher than 25% for a cotton valley lease.

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Permalink Reply by Margaret Wren on August 28, 2008 at 3:57

mine was for CV the pugh clause is for below.

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Permalink Reply by boby on August 28, 2008 at 3:59

I think there are going to be a lot of Louisiana lawyers getting rich in the near future litigating all of these lease clauses!

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Permalink Reply by gardnhoser on August 28, 2008 at 4:02

there is no doubt about that.

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Permalink Reply by insomniacnla on August 28, 2008 at 6:57

KB,

Believe it or not, I think that unitization does allow the o/g company access to the unleased land/mineral owner's property. I went through this about 5 years ago and was told by the Baton Rouge Conservation office that once an area was unitized, that the operator can come upon my land and it would not be a criminal trespass BUT that it would open the operator up to one heck of a lawsuit if they do it. So, the o/g companies will usually come to some agreement or stay off the property.

I could have sued the operator in civil court but I wanted the well drilled, the well site was on my neighbor's property and the operator had to cross my 20 acres to get to the well site to prepare a pad. No well was drilled.

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Permalink Reply by Grice on August 28, 2008 at 7:04

Correct, State law allows the commissioner to grant access to any unleased property. The company wishing to access such land, must apply for permission from the state prior to gaining access.

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Permalink Reply by ETOilman on August 29, 2008 at 3:57

Wouldn't it be necessary to obtain some sort of agreement with the company to drill "through" the shallower depths? Without some sort of agreement I believe that this is deemed mineral trespassing. I do recall on a job with SWEPI wherein they were drilling from point A through point B to get to point C and we had to get releases to allow us to drill through their minerals estate even though they would not be in the unit. That is my take on it.

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