2nd Chapter2nd Chapter

I believe I left off with the following “GROUND RULES,” listed by Mr. Smelley of Hargrove, Smelley, Strickland & Langley: (A. Only questions pertaining to the J-W units in the Elm Grove Field…No questions per the Haynesville Shale…):

B. No leasing questions, as Mr. Smelley had no first hand knowledge of J-W’s leasing operations.

C. No leasing questions at all! (Although some attendees did ask questions per same.)

D. No questions per “redefining of the LCV Zone to include the Haynesville Shale…As Mr. Smelley informed the attendees that this matter had been dealt with in the DOC’s “Memorandum” dated 7/28/08, which was ending this practice (except for certain LOOPHOLE left by the DOC…). Mr. Smelley went on to inform the group that J-W’s “application for hearing” would be amended per same.

In my previous post per this 7/31/08 Conference…I stated that (IMHO) there were at least four parties that should be standing up for NWLa Mineral Owners and their rights. 1. The DOC; 2. O&Gs, E&Ps and Drilling Companies, i.e. J-W Oper. Camterra , etc., etc. as these companies need MINERAL OWNERS in order to conduct their businesses here in NWLa. 3. Legal Entities like Hargrove, Smelley, et al, as these firms produce the documents that end up at our front doors…informing NWLa Mineral Owners of the “O&G” operations that will be being performed on our properties or surrounding them. And finally, and most importantly:

The one most responsible for Standing Up for NWLa Mineral Owners and their Rights…is…ME AND YOU.

I AM VERY DISAPPOINTED IN MYSELF for not saying what needed to be said at this “conference.” I LET DOWN “Gray Sands” and Others on this website as to the Safety Issues…which I truly feel should be the NUMBER 1 ISSUE per this redefinition scam. I did not Stand Up and PUSH for the things I felt were IMPORTANT…I let Mr. Smelley get by with the “GROUND RULES” THING…and I vow not to ever let the lawering grandstanding thing ever stop me again. I apologize for my mistake.

Ok…Back to the so called “conference,” Mr. Smelley and Mr. Adams (the geo from Livingston, La) explained that this “operator” (J-W) would be drilling vertical wells into the LCV Zone…close to the Haynesville Zone, but not quite??? Maybe just the “upper” part of the Haynesville” would be drilled to???? And…later, a year, maybe more, someone ????? Would come back to these vertical wells…pick which ones to drill horizontally…I took to mean…to the Haynesville…as I thought that that was the purpose of a “horizontal well,” with laterals???? (I heard more doubletalk than I could stand…) The geo, Mr. Adams explained that the one “vertical” well that J-W Oper. had drilled to the “Haynesville” did not produce very much…that well was “plugged” back up to the Cotton Valley Zone and would be one that could be looked at later on as to possibly better success if it is picked in the future for “horizontal” drilling??????

They were force pooling “units.” not sections????? And, Mr. Smelley stated that there was not a minimum percentage of leased land necessary to force pool a ‘UNIT.’ When I asked how much land J-W had leased up in the ‘UNITS’ that J-W was trying to force pool, Mr. Smelley said that I would have to go down to the Courthouse and look it up, as he had no knowledge of J-W’s leasing activities??????? (Remember…ground rules!)

Mr. Smelley did say that J-W would be creating separate ‘UNITS’ for the Haynesville and Bossier shales?????

When asked how a vertical well’s production could possibly be reported as that of a TRUE Haynesville producing well…we got more doubletalk. I stated that I did not believe an accurate picture of TRUE “HORIZONTALLY DRILLED” HAYNESVILLE WELL could be made from a NOT-TRUE “VERTICALLY DRILLED WELL” to the “Haynesville.” How can accurate production rates be FOLLOWED IF DRILLLING COMPANIES DRILL VERTICAL WELLS TO THE HAYNESVILLE…CALL THESE “TRUE” HAYNESVILLE SHALE WELLS…ANNOUNCE LOW PRODUCTION RATES… KNOWING VERY WELL THAT MANY OF THESE VERTICAL (LOW PRODUCING) WELLS WILL (DOWN THE PIKE) BE REDRILLED TO THE HAYNESVILLE AS HORIZONTALS…WHERE ALL THESE COMPANIES KNOW…IT IS THE “LATERAL” DRILLING THAT DEFINES THE HAYNESVILLE SHALE PRODUCTION…NOT THE VERTICAL DRILLING!!!!!!!!!

However, these drilling companies (IMHO) are going for the most “vertical” wells they can get under their belts…HBP all the acreage they can…and later on “flip,” joint venture/partner up with/or bargain off those “vertical” wells to the highest bidder…as potentially becoming “horizontal” HAYNESVILLE SHALE WELLS!!!! I believe that these Drilling Companies are doing the initial grunt work (vertical wells) drilling them as close or even into the Haynesville…get as many as quickly as they can…under their belts…thereby never risking the “high” productions figures getting out…as these well won’t ever do that…and they know it…all the while keeping their eyes on the prize…potential Horizontally drilled wells that will be worth who knows how much one or two or 3 years down the road!!!!! PURPOSE: Again, just my opine….TO GET EVERY INCH OF LAND POOLED, LEASED UP, OR HBP before the “rest of the story” can come out on a More Accurate Picture as to the actual Land Values per the Haynesville Shale….

Good for them…not so good for us.


Please excuse my posting today, as I have attempted to complete this for 2 days and have kept getting knocked off from AOL or Comcast (lots of building out in my direction..so I don‘t know which to blame for my complete frustration). My first two attempts were my best attempts at wording and organization.


If you are still with me, and I would not blame you if you were not…I so enjoyed meeting two fellow “gohaynesvilleshale.com” shalers…Bacon and James Cd1. It was truly a pleasure to meet and speak with both of you.

Finally…(you hope)…This afternoon (Tues. 8/5/08), I spoke with Mr. Chris Sandoz of the DOC (Baton Rouge) per my understanding of this “pre-conference” meeting of 7/31/08. He was quite pleasant, and he informed my that the DOC has absolutely NOTHING TO DO WITH THESE KINDS OF MEETINGS…Who Knew?????? Not me, that is for sure. Mr. Sandoz explained that “pre-conferences” when held…are for the Operators and the mineral owners to come together in an effort to “iron out” problems, differences, etc. and possibly pre-handle any of the landowners exceptions as to any “addenda” requested in an Operator’s “Application For Public Hearing” or its “Legal Notice,” BEFORE the Operator’s Scheduled Hearing in Baton Rouge, La. In this instance, J-W’s public hearing scheduled for 9:00 a.m. Tuesday, August 19, 2008...in Baton Rouge.

Mr. Sandoz gave me another heads up…If any mineral owners wants to be legitimately heard by the DOC per these “applications,” that mineral owner must attend the “hearing” (preferably) or fax or send a letter to the DOC…These pre-conferences DO NOT…AND…ARE NOT…meant to involve the DOC in any way and have no bearing on the DOC.

Mr. Sandoz also referred me to a Mr. Keating at 225-342-5507 per any questions about “force pooling” units, and questions per unitization of mineral owners. I had a meeting to attended this p.m., so I have yet to speak with Mr. Keating.

Mr. Sandoz and I spoke for about 40 minutes. He referred to some “work permits” and changes in “safety requirements” per drilling sites, rigs, etc. that the DOC was working on, or in the process of addressing, or had implemented recently. However, again, I did not have the time to get into this with him in depth.

Per our fight over the ending of Operators asking that O&G Formations/Zones/Fields be changed as to their established “depths” of field…Especially concerning the Haynesville Shale Zone…Mr. Smelley stated that the DOC had left Operators a LOOPHOLE in its Memo of 7/28/08…

So our fight to end this “redefining” thing has not ended or been adequately addressed (imho). Yes…we got a “Memo.” But, I have been left with the understanding that the LOOPHOLE is a HOLE THE SIZE OF TEXAS!!!! And will be used when and if any O&G Operator is not faced with any OPPOSITION IN BATON ROUGE AT THE “APPLICATION FOR HEARING” HEARING!

My point being…the “Report Of Conference And Amendment of Application” I received in the mail on Friday, Aug. 1, 2008...No. 1 in particular…but it goes on as to “combining downhole production, etc., etc. (I will upload letter for your review here.)

HOW DO WE BEAT THEM AT THIS????

DrWAVeSport Cd1 8/5/2008