SEECO is proposing 182,689.10 ACRE UNIT in the Fayetteville Shale. Scheduled hearing - Aug. 25 before the Arkansas Oil & Gas Commission. With a drilling commitment of eleven (11) wells over several years, SEECO will HBP @ 300 sections of land. (Translates to each well HBP over 7,000 acres). Broad - brush land issues / terrain difficulties along with BLM ratification is their argument.

How do you think the Louisiana Department of Conservation or the Texas Railroad Commission would react to the proposal of the creation of a unit consisting of 182,689.10 Acres along with a drilling program consisting of eleven (11) wells. I think the Arkansas Oil & Gas Commission will act accordingly.

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Order Reference No. 577-2009-08
What percentage of this is federal land? There are some huge units up in the Rockies on federal lands. They do have addition restrictions, particularly mandatory contraction terms where certain percentage of acreage is released (as in given up) each year. Anything left undrilled is factored in to the contraction.

It will be interesting to see how it turns out. Since I'm a betting man, I'm going to put my money down on "accepted by Commission"...not a lot of money, though. SEECO seems to have a lot of sway up there.
1. SEECO, Inc. (“SEECO”) hereby applies to the Arkansas Oil and Gas Commission
for certain exceptions to its General Rules including, without limitation, General Rule B-
43, to apply only to the lands contained within a Federal Exploratory Unit, the Ozark
Highlands Unit (“OHU”), composed primarily of mineral interests, owned by the United
States of America, but containing some privately owned mineral interests.
The OHU lies entirely within the Ozark National Forest. All surface access and surface
use is controlled, and severely restricted, by the United States Forest Service.
The OHU currently contains 182,689.10 acres, more or less, in Conway, Johnson, Pope
and Van Buren Counties, Arkansas, described as follows:
And the key to this, IMHO

8. The United States, through the BLM, has sole and exclusive jurisdiction over its own
mineral interests
. This Commission’s regulatory jurisdiction, within the OHU, is thus
limited to those privately owned mineral interests contained therein. The Applicant
requests that the Commission conform the interests of any uncommitted private owners
with the interests of the United States
and the committed private owners, by facilitating
the inclusion of such uncommitted interests within the OHU, as an alternative to
excluding such uncommitted interests
, thus leaving such lands as undeveloped
“windows” surrounded by the OHU.
Thanks Baron. I think I'll up my bet on SEECO being successful.
You might have a hard time finding someone to take that bet.

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