Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on September 29, 2009 at 2:53

I simply means Chesapeake does not choose to drill under this permit at this time. As to why? That's anybody's guess. Expired permits are quite common and to reapply is the same process as the original including the permit fee. The Office of Conservation is adding the option for a one year permit application at a higher fee that will reduce the instances of expired well permits and provide greater flexibility to the operators. They don't want to start the whole permitting process over when leases are close to term expiration.

• ▶ Reply

Permalink Reply by The_Baron on September 29, 2009 at 4:06

It is just a rubberstamp to get a new permit for an expired well, but it still has to be reveiwed to be sure nothing has changed. All this takes time and creates unnessesary work on an office already swamped by the HA shale. I am gald to see the longer term permit, which as skip said is at a double fee.

Somtimes there are just delays in getting location built, or a rig ,or drillsite title opinion that can't be avoided.

• ▶ Reply

Permalink Reply by Mac Davis on September 29, 2009 at 4:41

Thanks.

How much is the fee for a permit?

• ▶ Reply

Permalink Reply by The_Baron on September 29, 2009 at 8:26

Fee Schedule for Fiscal Year 2008-2009
A. Application Fees Amount
Application for Unit Termination $ 252
Application for Substitute Unit Well $ 252
Application for Public Hearing $ 755
Application for Multiple Completion $ 126
Application to Commingle $ 252
Application for Automatic Custody Transfer $ 252
Application for Noncommercial Injection Well $ 252
Application for Commercial Class I Injection Well $1,264
Application for Commercial Class I injection Well
(Additional Wells) $ 631
Application for Commercial Class II Injection Well $ 631
Application for Commercial Class II Injection Well
(Additional Wells) $ 314
Application for Permit to Drill - Minerals: 0' - 3,000' $ 126
Application for Permit to Drill - Minerals: 3,001' - 10,000' $ 631
Application for Permit to Drill - Minerals: 10,001' + $1,264
Drill Minerals Deeper (> 3,000') $ 504
Drill Minerals Deeper (> 10,000') $ 632
Application to Amend Permit to Drill - Minerals $ 126
Application to Amend Permit to Drill - Injection or Other $ 126
Application for Surface Mining Exploration Permit $ 65
Application for Surface Mining Development Operations Permit $ 94
Application for Surface Mining Permit $2,212
Application to Process Form R-4 $ 36
Application to Reinstate Suspended Form R-4 $ 65
Application for Emergency Clearance Form R-4 $ 65
Application for Site Clearance $ 600

• ▶ Reply

Permalink Reply by Mac Davis on September 29, 2009 at 13:12

Thanks Baron.

As I see it, chump change vs. actually drilling a well.

The "cost" is possible time delays and/or reopening some sort of regulatory issues.

Does anyone have an idea what the time delay is to get a permit re-issued?

We never got any kind of notice about the drilling permit, just the formation of the unit.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on September 29, 2009 at 13:25

Mac. The permit fee is of no consequence. The time required to apply for and receive a permit or to reapply for a permit which has expired does become a significant consequence when the expiration of leasehold is at stake and time is short to drill and HBP. The industry and the Louisiana Office of Conservation have remedied that inconvenience by allowing a double fee for a one year duration permit. Unit applications require notice to Interested Parties. Well permits do not. The time delay required to re-permit is now rendered a moot point.

• ▶ Reply

Permalink Reply by The_Baron on September 30, 2009 at 3:09

It takes several weeks to get a new permit, IF everything is correct and acceptable to the LOC.

• ▶ Reply

Permalink Reply by young land owner on September 29, 2009 at 5:05

Yo, my original permit went expired. remember those first things you were getting in mail before ur first permit? U will start to get those again then ur permit will follow. Be glad it expired, prices suck right now.
Young land owner

• ▶ Reply