Replies to This Discussion

Permalink Reply by John on January 21, 2010 at 5:51

Due to the Congressional debating on the Marcellus Shale, and our legitimate fear of Federal control coming into play, and if they do come, they will be brushing State Legislators aside as if they know nothing about the state they lived in for their WHOLE FRACKING LIFE!!!... and the Anti-Natural Gas/Fracturing Groups (Socialist Pro-Arab Oil Coalitions), who are pleading with Congress to Federalize this (and penalize each well at $100,000)... well, maybe the bright star if they succeed, (and due to the Marcellus' flat, thin sheet of shale being under those heavily populated states), the Gas Exploration Companies will be less excited about that Marcellus formation and be prone to see the Haynesville play as the logical place to focus – due to the low area population, the rural access, and the fat numbers of Mmc/f of each new well in Louisiana pulls.

The news I am reading on the Marcellus play is, they hit that shale with the drill-bits, go horizontal, frack it, and pull out insignificant amounts of NG and a lot of slushy mud on many of their drill jobs. And abandon the pad.

The HS play is so fat in some areas, geologists are not required to sonogram/doppler many sections in NW Louisiana. Just drill, and hit it, frack it... and out comes mega-MCF-per-day production.

As for the clause that could kill the Exxon-Mobil/XTO deal, I found some of the verbiage that is the deal killer... “hydraulic fracturing or similar processes … illegal or commercially impracticable.” <-- this clause allows Exxon-Mobil to walk from the negotiations table. We want them to stay, and wrap it up AND get to work.

Why is this even a clause? I believe this is due to our "friends" up North, and all the green gripers. Frankly, they need some perspective. Just go sell their cars, buy bikes, and see what an inconvenience it is to not have energy... or do they prefer we just keep buying Arab Oil.

And seriously, I still ponder... "what is up with that?"

- We have found huge amounts of NG (Trillions of Mmc/fs of it under North-West Louisiana) as well as the Marcellus, and others.

- Christmas Trees on pads, hidden behind the tree-lines, are way prettier than Petrol pumpers in the fields of mid-to-west Texas.

- And here is a big "Duh" for the un-informed... NG is the cleanest thing we have in fossil-fuel. Then after that... solar, then hydro-plants on rivers, then wind (but, I think the mega-turbines are ugly, and destroy the landscape).

- We have tons of petroleum (Alaska, Texas, Louisiana, etc.), Plus, we could buy it from the Mexicans and Canadians (who like us a tad better than our Arab suppliers).

- AND... we have T. Boone Pickens re-thinking wind and considering NG as the best option! Wow!

- OH, and we have a fresh, eager new Republican Senator in Massachusetts, a state that has been on the anti-shaling/Fracking bandwagon since Marcellus was discovered. GREAT NEWS THERE ON MANY LEVELS!!!!

Here is a cool YouTube... http://www.youtube.com/watch?v=lRDeWhJGn-4&feature=player_embedded

And yes, That is my comment. Please rate and 5-star that video. It was 2.5 stars with 3 ratings... I got it up to 3. We can get it to 4.75 easily if you do it now. Go!

Kindest Regards Fellow Shalers.

John

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Permalink Reply by Pipeliner on January 21, 2010 at 6:50

John,

Very good post. Video makes the whole operation understandable to even a layman.

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Permalink Reply by Linda Blunt on January 21, 2010 at 8:28

Thank you for posting the video. Like John stated, it's very helpful to a layperson. This was a vertical well wasn't it...not a lateral well?

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Permalink Reply by essay on January 21, 2010 at 11:38

glad to see this, i was going to post something similar... apparently fracturing criticism on the hill has been "muted" in comparison to the glowing reports of other aspects of north american natural gas.

with another big draw number today i think we may be looking at a new floor for NG above $5

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Permalink Reply by John on January 22, 2010 at 7:39

Thank you for the remarks. I am spending a good amount of time learning about the Haynesville Shale, in every way possible (and reasonable) way. Also, understanding the big picture...

How it affects us, economically, and on many levels:

- Starting with the Mineral Owner Lessors, who have to learn how to understand all of this. I knew squat in the Summer of 2007. I know more now.

- The construction people working the plots to pad a drill-site, and drill into the shale, while protecting the water table of course, then frack it, and hopefully - every time they pad and drill - in the end, they erect productive Christmas Trees. And also, it is a clean job. Plus, there are tons of construction people hungry for work.

- To the lawyers and landmen making deals happen, and finding a fair middle-ground (which I believe is $5,000-to-$10,000-per-acre bonus' and 20%-to-25% royalties... and markets-willing, we get $6.00-per-MCF as the base price-point.

And, regarding the big demographics involved... to the Exploration Corporations (and the big-time players like Exxon-Mobil, who are smartly making this move, partly for PR purposes, but mainly because they - of all the big ones - have the most liquid cash AND a reputation that is under attack... despite their attempts at getting a better image by placing all of these green/"help the world" Television Ads... which seem relatively sincere.)

Watch this YouTube: Like him or hate him, he is a broken record. AND like her or hate her... I agree with her (somewhat)... http://www.youtube.com/watch?v=PThFyftQJfw

And WTH is up with America nursing from the breast of Saudi Arabia, and our currently Democratic Party's agenda with keeping us status quo with Arabs? We have Oil. Even Sarah Palin knows that. BUT, I think it is smarter for Exxon-Mobil to focus on Natural Gas in Louisiana than drilling for oil, and shipping it, from Alaska. I sort of think the Big Cats at E-M know the right choice.

Back to knowledge and learning...

I want to know a lot about this, and have an understanding of all of this knowledge that allows me to not seem uninformed. I know NG is not purely clean... but it is the cleanest of the fossil-fuels.

As for the original point of this topic being about the "At-the-Pump" taxing of the Big Oil companies (by trying to get a surtax on each well – gas OR petroleum) and then handing OUR money to the Coalition for Cleaner Burning Coal makes me want to go nuts! The Clean-Coal Lobbyists have been around a long time, a big "But" and a big "IF" the Obama Administration and Democratic Congress get this to happen, this "Clean Coal" will likely still be less clean than NG. That mentioned, I want to know the effects on the environment (as well as to how that is benefit to those who live on top of that environment).

That mentioned, I come from the Business of Advertising. I am 20-year-long Ad-man. And, I will admit, I have told lies to millions of people, and on several occasions. That is the business of advertising. So, I was starting to feel some trepidation about the sector I worked in... and my wife would joke and say "You know you lie for a living." and I saw some sincere logic in those remarks.

This was 2007.

Then, my mother calls me in the Summer of 2007 and says "you won't believe this, google Haynesville Shale." And now I am here... I left my Advertising job. I now represent her (and protect her interests best that I can, though, she has been scammed at least twice).

I help her by assimilating this data, deflecting scammers, and being mindful of how this all changes everything. Including relationships. Anyone reading this, ponder the effect the HS Play has brought to your life. There is good, and there is bad... just amplified a bit. No, a lot.

And to be more helpful to mom, and myself, and my children... and my children's children... I must get smarter. I am too old for college (43), but I plan on taking a good certification course in Natural Gas Business in Fort Worth - a course that will help me understanding the Business Leasing aspects better, economic impact, environmental impact - and what is done to protect it - and be a good contributor to those around me, in similar circumstances.

I had a lot to tell there... my apologies.

Kind Regards,
John

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Permalink Reply by Cary Jerome Marston Huff on January 24, 2010 at 18:54

Honestly speaking - It seems to the growing mass wall of land owners, USGS, and politicians that natural gas is clean when burned, but it is now being proven there is substantial environmental and infrastructure damages being done by extracting natural gas. Infrastructure damage comes in many areas including Roads, Bridges, and Clean water sources. These damages are being by tractor trailers with heavy equipment loads, fracturing of wells which in Fracturing chemicals such as acids in a 15 % solution, and the use of radiated sand. The USGS says Fracturing itself causes earth quakes. Because of all this, the actual damages being done far outweighs the damages being told to the federal, state, and local governments. There is no such thing as safe drilling or safe fracturing of gas. There has been major hazardous waste spills on my land. These spills were never told to me. As a land owner I took picture to record the process for historical data, then here comes the backhoes and dump trucks to clean up this mess sixteen days later. It just happened my children were playing in that hazardous waste spill in front of the well workers. They didn't care about them hazards to a 6, 8, and 9 year old. The name of the game is come in set up shop - 'offices, and equipment suppliers, and etc..'. Drill the wells close up shop move offices to a safe location like Houston, TX or sell production company to another and hide the Asset Purchase Agreement (APA) from the public using terms, such as - 'Strictly Confidential', and hide the Drill site obligation of liabilities. But the APA can be attained by the SEC. Drilling for gas is a quick buck for the gas companies. Furthermore, you can look at excellently built roads and see water come out of the roads after wells have been drilled and fracked. Really dry days and the water keep coming out of the black top roads. Are the wells being over fracked? I don't know, but there is more damage being done than is being said.

CarHuff

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Permalink Reply by John on January 25, 2010 at 15:27

Damage.
- Oil wells cause horrible damage, then you have the pumping arm. Texas is littered with them.
- Those Green air turbines ruin the countryside. And kill wildlife.
- Solar does not have a robust ROA. Cost too much to put up, and slow to pay for itself.
- Damming a river for hydro energy destroys the ecology upstream, the land/wildlife are wiped out.

Well, an option in line with your post... we could protect from damage of Natural Gas pumping and fracking by halting in our tracks, stop all of the deals that stimulate the stale economy in this region, AND continuing to import oil from the Arabs, and let them pollute their land.

Or we could figure a way to make safer nuclear reactors, and put those all over the place. Or we can allow our lands to be surtaxed, and hope for something better with "Clean" Coal.

CarHuff, do you drive a car?
Do you heat your home?
Do you fear that independence is bad?
Is change bad?
Do you like the idea of alternative energy?*
Do you have 1 or more acres to lease, that are above the HS play?

On the last question, if it is no... you are being rhetorical, and if yes... you are spouting hypocritical folly. <- No offense.

I am sure everyone reading this agrees, If they can figure out faster and better ways to get it out... great! They will AND we will let them. They may set up shop, take what they need, but we are doing business with them.

It is like saying "We want to dig that giant bag of money that has trillions of dollars in it. And, the people speaking of moisture on the roads would not be heard for the drilling, blasting, jack-hammering, picking, etc. to get to the money.

The HS play is money. It will be drilled and fracked. Damage will be done (I do not have sources, but merely remarking to your worries about damage). That said, It has been done in the past, and will be in the future. They are moving now, and my family will execute any reasonable lease we see.

* This Forum is a place to speak and share about the HS play, not try to convince mineral owners that we are doing bad things. We are just folks who have lands above a valuable commodity.

John

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Permalink Reply by Skip Peel - Mineral Consultant on January 25, 2010 at 15:56

Cary.

Please don't lump damage to infrastructure in with environmental concerns. The area of the Haynseville Shale Play has seen the development of oil and gas for many decades. We know how to cope better than most and will require much more out of the companies that are responsible for the wear and tear on our infrastructure. We'll get our gas out and take care of our roads. I am sorry to hear of the pollution of your land and the environmental risks involved. I hope your kids are okay. As to water on, around or under our roads, there is no connection whatsoever to fracing the shale two miles deep under that road. Additionally someone has misinformed you as to the concentration of the acid. It's far less than 1% much less 15%. We care about our environment and our kids too. And we will not abide any egregious misdeeds of the industry. We will find a balance and realize the immense benefits of the Haynesville Shale. By the way, Jack Blake is around here somewhere. Someone cue Jack.

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Permalink Reply by Cary Jerome Marston Huff on January 25, 2010 at 16:53

There are alot of honest oil and gas workers. Most gas companies try to find balance. I have many landman and site supervisors who are my friends. I don't know where these companies get these guys - they are awesome. The information for the Acid came from ALL Consulting 2008 . Manual - "Hydraulic Fracturing Considerations for Natural Gas Wells of the Fayetteville Shale". My help and knowledge is there to help those who need help. I try in honesty to do my my best I can. I am told though I can't say much more. Thank you Skip Peel!

Cary

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Permalink Reply by Cary Jerome Marston Huff on January 25, 2010 at 16:19

Yes, yes, and yes.... I have two wells with a third coming. On my property, I personally saved the life of a Rigger who fell 50' off the derrick, he was dismantling, and onto the house deck. I have years of research in leasing mineral, drilling and fracking wells. I have thousands of document, with broken contracts, with scores of related oil and gas manuals, 7,000 photographs of gas wells, and many photographs of Hazardous waste spills. Many of these photographs show the Hazardous waste being bled off instead of being contained. You have a man in this string who says he was a salesman and he confessed of being dishonest as a salesman - now this man wants to be a Landman. The people, mineral owner, land owner, and politicians want honesty, safety, and cleanliness. The problem is, yes oil and gas companies lease mineral from the unknowing majority for a mineral interest under the amount being told in this string of comments. Usually its 1/8th mineral interest at the beginning period. Yes oil and gas companies lease the black carbon minerals, but land owner after land owner have complained their lands have been senselessly destroyed. Reasonable location, and reasonable damage should be the oil and gas companies objective. Because this isn't being done by some of the oil and gas producing companies, a wall of the populous and politicians are angry. I am for oil and gas that is honest, and that strives for safety and cleanliness. I think all lessees/ lessors should strive for this.

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Permalink Reply by John on January 26, 2010 at 5:03

I believe people strive for objectivity and fairness, however, they will defer to the dollar (or power) if presented to them. And Cary, thanks for your openness. You are an apparent long-timer. I am from the 5th generation of a large collective family, and it has just changed a lot in the past 20 months... a lot.

And we should not destroy our ecology... but, we should use the energy that has the least impact.

Another thing about soggy roads - since I drove one 2 months ago - I believe the sheet vinyl used to make those berm ponds is not robust enough... the road was sloshy mud. BUT, the water is cleaner than petrol. And, I am not being silly.

That said, we mostly own mineral rights... so, we are not paid for property damages. But, I believe the Construction companies are more aware of damage lately since they do not like to be sued.

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Permalink Reply by essay on January 26, 2010 at 12:53

it is extremely easy and disingenuous to conflate surface pollution with hydraulic fracturing. obama's epa has admitted there is not one instance of groundwater contamination resulting from the actual process of a well being fractured.

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