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Permalink Reply by Grillin' - MmmMmm on July 20, 2009 at 1:13

First, where are you located? could make a difference. If there is a unit set up using geologic boundaries, then it is possible that you could not be located in the unit due to a fault. If the unit is set up using sections, then you might. If there is no unit, you may still have a claim. I'm just a dumb ol' engineer and business guy so folks more versed in "lawyering" than I can help out. But they'll need to know where you are located.

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Permalink Reply by The_Baron on July 20, 2009 at 3:13

Could be 40 acre units, very common in wilcox and nacotooch wells. Could also be a lease well.


please provide more info.

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Permalink Reply by Les Bamburg on July 20, 2009 at 3:45

Olivia, many shallow oil wells in North Louisiana are producing on a lease basis rather than a unit basis. Lease basis wells only pay royalty to the property (mineral owner) where the well is located. If you can provide additional information about your specific location (Section-Township-Range) we can probably provide better guidance. It you check the well location there should be a sign with the well name and serial number.

And yes - there are no stupid questions.

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Permalink Reply by Olivia on July 20, 2009 at 5:17

The land is in DeSoto Parish and is the NW 1/4 of Sec 15-Twn 12North-Range 12West. The serial number for the well is (I think) 6237 and driller is listed as River Rouge. We have other land that is leased already but, quite honestly, we're confused as heck between mineral rights laws and the who-owns-what questions, so I'd appreciate any advice y'all can give me.

THANKS!

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Permalink Reply by Les Bamburg on July 20, 2009 at 7:26

Olivia, I believe this is the Frost C #1 Well (Ser #62377) located in Section 16. The well was drilled to 2650' feet in 1956. Information indicates it has been a producing natural gas well (perfs 844 - 850 ft) since 1977 and is flowing at a rate of ~ 8 Mcfd. Because the well is producing as a gas lease well, royalties would likely only be paid to the Frost C property owner.

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Permalink Reply by Olivia on July 21, 2009 at 0:13

Thank you for looking at it for me. We know something's going on in our (small) part of Gene's Bayou and about and old well with Sun Oil, but we're having to do everything from NC right now and our father left us 11 different pieces of land or mineral rights or "interests". Sorting through it is making me loopy. I really appreciate your help!

Have a great day,
Olivia

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Permalink Reply by Dion Warr, CPL on July 20, 2009 at 4:14

Olivia:

There are also many Saratoga and Annona Chalk wells which are more or less set up on ten acre spacings which could definitely be within 200 feet of your property line without necessarily including your property. In several older producing areas in N LA spacings as dense as one acre e.g., Caddo Pine Island (within the town of Tullos the spacing was one well per lot at one time), but my guess is that if you were located in one of those types of areas well(s) would have already been drilled on your property long ago.

As others have said here, you are probably adjacent to a producing lease well. In this situation, your only recourse would be to go to LOC (District level first) to seek redress as to drainage. More than likely, the commissioner or geologic review board will ask for proof of drainage, which is hard to prove short having an expert for testimony (geo or reservoir engineer) and/or having well information in hand to submit (which you probably would not have in your possession, unless you already had an offset well on your property).

If production from a shallow interval offsetting your property is the case, and you are unleased, you may wish to consider approaching the operator so as to inquire if they would be interested in drilling a well or wells on your property to the same interval. You will need to enter into a lease arrangement, but you likely would want to limit the strata only as to the anticipated zone of completion (e.g., surface to the base of the Annona Chalk, Wilcox, Tuscaloosa, or Fredericksburg formation, etc.) Be willing to give a short-term 'free lease', but only at a preferred royalty (i.e., a 1/4), if you're interested in production from (or wells on) the property.

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