Eric, I didn't say there was not a well finished, There are in fact several. The shut-in well you mention, Chesapeakes's Conger in S15-18N-12W is barely economic at current prices and hopefully will stay shut in because when it does begin to produce it will deplete rapidly like the other completed horizontal wells in the area. Samson Contour's Hall in S34-18N-11W has produced only 1.1 bcf in a year and is making just over 1MMcfd. Their Hall 27H in S27-18N-11W will not produce 1 bcf in it's first year and will be below 1Mcfd by year's end. Diamond Oil is not a shale player and their wells are verticals. In the eyes of an independent landman who works for mineral owners, not for the industry, I offer the Haughton area and the East 80 Oil & Gas Coalition as a cautionary tale of how not to negotiate with an O&G company. The window of opportunity that existed in 2008 has closed. And there will not be another like it.
Eric, In the firstplace the Bossier Shale is not exactly new news. In the second place, the liklihood of the Middle Bossier being commercially productive in the Haughton area isn't very high. It is present commercially in the southern half of the Haynesville Shale play. Google almost any of Petrohawk's recent presentations and you will get an idea of where the Bossier is present.
A group of us also got great leases on Swan Lake Rd. We took what we could get in the frenzy of 08, it wasn't anything approaching the lease amounts to the south but it was in the neighborhood of 8 an acre. We made out like bandits, sometimes those doing the leasing win and sometimes they lose. They lost bad on our deal.
While I do not, and have never worked for CHk or HK, I do have a good deal of friends that do or have. Most have worked for brokers working with CHk and Twin Cities.
They love to tell stories about how these mineral owner organizations have worked at the detriment to their members. Most notably would be the Haynesville Shale Landowners Association. These organizations charge a fee or percentage to negociate on behalf of their clinets, but for the vast majority of the mineral owners they do not get anymore money than someone negociationg in their own, and also do not get any additional lease clauses that wouldn't be offered to anyone else. In effect, they have no net gain, but cost the mineral owner.
I am not saying that everyone should charge in on their own. Banding together with your imediate neighbors or homeowners association is a good thing. So is soliciting informed advice. Personally, I believe it is a waste of time and money to retain an attorney for few acres, but no one should proceed with any type of legal contract unless they understand what they are getting into.
While Mr. Camp has the right to be hopeful, I personally have not seen any data to coroboate his hopes. The data I have seen , and I have seen more than is available on SONRIS, does not look great, especially at sub-$4 gas.
I think it is shame that some of these organizations talked many owners out of leaseing in the boom...
They love to tell stories about how these mineral owner organizations have worked at the detriment to their members.
Of course, the good old boys sitting around a table at the bar swapping stories over a few beers never talk about how they were going to shaft someone, but they got organized and got a much better deal, do they?
I am a member of East 80, and I don't care if the window of opportunity is closed. I would rather have a sound contract approved by my coalition, then have possible future groundwater contaimination, poisonous fume leakage, or any other catastrophe that the gas companies would make me liable for. What is a few thousand dollars or thousands of dollars compared to the ruin of an entire community. I have lived here 32 years and would like to stay here.
My point is that these coalitions are doing little if nothing to benifit their members. The major companies are already willing to agree to certain terms, you must only ask.
In any case Traci, your groundwater is protected by many laws and regulations already in place. The law also gives you the ability to sue the operator with virtually no statute of limitations if for some reason you are damaged.
I have yet to see a whole community to be "ruined"
Yes there will be acidents and other issues... but I still have not had anyone be able to explan to me just what amazing protections that these groups have been able to get that would have been unobtainable otherwise.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More