production units larger than 640 acres in Sabine parish???
Jack heard that there is a production unit in Sabine Parish larger that 640 acres....
Is this so? Jack remembers when he first did his lease someone on GHS said to get them to strike the language in the lease that said the units could be as big as 1920 acres or some size about that many acres. When I asked the landman to strike it he said is doesn't matter because in LA the units could only be 640 acres. I said if they can only be 640 acres then it doesn't matter so strike it to make Jack Blake feel better. He striked (stroke) struck it .
The person who told Jack that there is a unit in sabine parish larger than 640 acres has land in that unit. I don't really see how it will hurt the landowner as all the gas will eventually be produced and all the landowners will share proportionally. The only way a landowner could get cheated is if the gas is under their 640 acre section, but not under the other section that is in the production unit.
Experts please help Jack understand this....
Is this so? Jack remembers when he first did his lease someone on GHS said to get them to strike the language in the lease that said the units could be as big as 1920 acres or some size about that many acres. When I asked the landman to strike it he said is doesn't matter because in LA the units could only be 640 acres. I said if they can only be 640 acres then it doesn't matter so strike it to make Jack Blake feel better. He striked (stroke) struck it .
The person who told Jack that there is a unit in sabine parish larger than 640 acres has land in that unit. I don't really see how it will hurt the landowner as all the gas will eventually be produced and all the landowners will share proportionally. The only way a landowner could get cheated is if the gas is under their 640 acre section, but not under the other section that is in the production unit.
Experts please help Jack understand this....
Views: 79
Replies to This Discussion
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Permalink Reply by Shaleeee on
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Jack, does the landowner own all the land in that larger unit? Seems to me that would be a way to HBP more land with one well??
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Permalink Reply by Les Bamburg on -
Jack, there are some larger Haynesville Units partially under Toledo Bend so the acreage can be developed from the dry land. All the acreage in the larger units share in the production from any Haynesville Shale well completed in the unit regardless of specific location.
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Permalink Reply by Jack Blake on
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They own less than 10 acres and it is in northern Sabine parish not close to Toledo Bend.
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Permalink Reply by Les Bamburg on
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Jack, do you have a Township-Range?
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Permalink Reply by Jack Blake on
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Les B,
I am away from home and do not have my HS notes with me. I'll be home in a week or so and look up the Township Range and section this land is in and reply to this thread then. The landowner may be mistaken, but if Cheseapeake has really combined three sections it means less wells will have to be drilled to hold sections.
Thanks,
Jack Blake
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Permalink Reply by Les Bamburg on
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Jack, just let me know what you find. My information does not show any Chesapeake units in Sabine Parish that are larger than one section.
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Permalink Reply by J B Nabors on
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I don't know if there are any units larger than 640 in the NW Louisiana area. Last year Pinnacle / Long tried to get approval for a 1920 acre unit for the Sligo formation. They had hoped to combine six (6) 'old' Sligo 320 acre units. Their proposal would have included acreage from six different government sections in the new Sligo Unit.
I wrote a letter to the Commissioner objecting, because I thought (and still do think) that it was nothing more than a subterfuge for Long to HBP all the leases in 1920 acres indefinitely.
The application was disapproved.
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