Replies to This Discussion

Permalink Reply by DrWAVeSport Cd1 on July 24, 2008 at 15:02

Drillbit,

Good question. Please read discussion "J-B Oper. Co. request to "redefine Lower Cotton Valley Zone 10,030' to 12,100'..." in conjunction with how that affects Pugh clauses (per comments by Bob McGilly in same discussion) and how O&G and E&P companies are manipulating these depths of Fields, especially as to Lower Cotton Valley, Logansport Field (08-884, legal notice)/Cypress Oper. Inc.'s request, the Longwood Field, (legal notice 08-874 thru 08-876), and several companies requesting same for the Elm Grove Field, i.e. KCS Resources, Inc., Matador Prod. Co., Cameterra Resources, Inc., Goodrich Petroleum Co., LLC., and others.

After reading the above info, we hope that you will p lease petition/contact the Office of Conservation, and those listed in said discussion "template" letter, and ask that these changes NOT BE GRANTED. We do not believe that these changes are in the best interest of NWLa mineral owners. We have been waiting for a clear, concise, and definitive answer to our repeated requests. THIS HAS AS OF DATE, NOT BEEN ADRESSED BY THE OFFICE OF CONSERVATION IN ANY WAY PRO OR CON.

drillbit, we need everyone's help here to put some pressure on those in Baton Rouge who are in charge of what is happening in NWLa. These folks have a responsibility to La residents to protect the rights of those involved in the Haynesville Shale Play, as equally as those of O&G. However, many "shalers" are questioning the above practice and are suspect as to the exact purpose for these "changes" to the depth of well established ng fields/zones to include the Haynesville. WE HAVE YET TO RECEIVE ANY OFFICIAL STATEMENT FROM BATON ROUGE.

We need your help in getting Baton Rouge to pay attention to this part of Louisiana, as to the residents who look to them for guidance and certain protections from (possibly) deceptive business practices by any industry, including O&G. Because we have heard nothing official, I am leaning to the belief that these changes do not bode well for us as in financially advantageous terms. We AT THE VERY LEAST ARE OWED THIS BEING IMMEDIATELY ADDRESSED.

DrWAVeSport Cd1 7/23/08

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Permalink Reply by Two Dogs, Pirate on July 24, 2008 at 15:19

Look at below I-10 and research the units below ones feet. Multiple units maybe 5 or more, each unit with a different operator. All I can tell the good folks of North Louisiana is there are lots of formations below your feet and each formation is worth money. Why give the shale players everything when they only want the shale. If you lease everything you are throwing a good bit of money down the toilet. The experienced Coon-Ass landmen are saying "Look at these stupid Rednecks".

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Permalink Reply by JW on July 24, 2008 at 15:50

Those words are believable coming from a "landman" and I mean no disrespect by that. I have been trying to get a better understanding of depth clauses. Although, it is a lot clearer today than it was. Is it possible to sign a lease that pertains to a specific formation and depth? This would leave open anything above or below this formation. Is that something that the O&G companies would entertain? I sure don't want to be considered one of the "stupid rednecks".

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Permalink Reply by Two Dogs, Pirate on July 24, 2008 at 16:04

You ain't no stupid Redneck. Formations criss cross the entire HS. In South LA they lease the formation.

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Permalink Reply by JW on July 24, 2008 at 16:07

Why can't we lease just the formation in NW LA? Are the formations too close together? It looks like everyone is really after the Haynesville Shale.

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Permalink Reply by Two Dogs, Pirate on July 24, 2008 at 16:22

Thats the way it is in South Louisiana, can't see why it wouldn't work in North Louisiana.

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Permalink Reply by JW on July 24, 2008 at 16:29

Do you think that the O&G companies would still pay the big bonuses for a specific formation? I like the idea of the coon-ass landmen. Don't lease it if you don't have to.

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Permalink Reply by drillbit on July 24, 2008 at 16:37

You can lease intervals, e.g., from top of ground to 10,000 feet and reserve everything below 10,000 feet for yourself. I have seen it done. No mention of any formations or zones.

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Permalink Reply by JW on July 24, 2008 at 16:40

Good information. Thank you.

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Permalink Reply by drillbit on July 24, 2008 at 16:25

Of interest to anyone not yet leased....the lease form sent to me contains a section that begins by granting the lessee the right to combine, pool or unitize all or part of my land. I may be able to negate this easy enough in my lease exhibit (attachment) by simply stating that the lessee does not have the right directly or indirectly to combine, pool, etc.. Where I will likely have a problem is that, in addition to the lessee, Louisiana Law allows the Commissioner of Conservation (to prevent waste, drilling of unnecessary well, etc.), adjacent owners, interested persons (can the lessee request pooling acting as an "interested person" even if forbidden from doing so as "lessee"?) and possibly others to request and receive an order for pooling. If I were able to theoretically prevent pooling with lease exhibit language, would it be legal to do so? It seems the deck is stacked and that the lessor might as well push his money into the pot and fold his hand. It would be so nice if one could find a qualified attorney who would serve the best interest of the lessor for a fair fee and not be concerned with alienating existing or potential oil/gas company clients...or if we could find politicians in BR to take up our cause. Do not hold your breath!

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Permalink Reply by drillbit on July 24, 2008 at 16:50

Found this in 9. of LEASE FOR OIL, GAS AND OTHER LIQUID OR GASEOUS MINERALS, State of Louisiana (a lease the state uses to lease its minerals)...Lessee may, with the consent and approval of Lessor pool or combine the acreage covered by this lease (or any portion thereof) with any other property, lease, or leases (or portions thereof). Operations on or production of minerals from, or the existence of a shut-in gas well on, any portion of a unit, including units created by the Commissioner of Conservation or by conventional agreement, in which all or any part of the leased premises is embraced shall have the same leased premises.

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