O.K. Newbie here so cut me some slack if I screw this up. I just noticed there's no discussion group for my parish and communication among our residents is sketchy and patchy at best because we are VERY new to the oil play, so we don't have any collective wisdom here. Any comments, insights, or even heresay welcome here. What I have to contribute is just information on lease rates and the areas they are concentrating in right now. (Averaging $150 for first three, varying for next two. From 1/6 to 1/5 royalties.) Devon is about a month into drilling it's first Tangipahoa well just a little north of me in Fluker, Louisiana. I have friends who are part of the unit but they are not hearing much of anything. Security at the site is TIGHT with our local sheriff's office maintaining 24 hour presence a couple of hundred yards from the rig itself. They ask you your business and write it all down. I think it's called a "tight hole" or something like that. They are also going to be buying all the pond water nearby. I don't know how much they are paying but will ask around.I have heard that our state is limiting the drilling of wells for water but I'm not sure of that. It was just hearsay from a friend. Well that's it for now.This is a great site. I've learned tons here. Amelia Resources has been a great help as well. Keep up the good work people.
Sorry, Wilcox, I agree with Joe. These companies know just how to work it to their advantage and I don't blame them. Smart business sense. If they weren't shrewd, they wouldn't still be in business.
Nope- If they wanted to hold onto that acreage they could drill shallow wells at a fraction of the TMS wells and produce a little and shut-in, produce a little and shut-in. The units they have drilled I dont think have any 10k acre land owners and if they did there would be pugh clauses in the leases releasing what isnt HBP.
You are simply wrong. Sotera is a timber company and one of the largest land owners in Tang. Parish. I have no idea how much land they own but its in the thousands of acres. The Beech Grove well secures 12 to 15,000 acres of John Barton's land and the Richland well secures 15 to 18,000 acres of land. These leases were signed at least 5 years ago when there was little to no activity in the area an were at term when they were drilled. These leases may or may not have a Pugh Clause in them and if they do I doubt that they have a Pugh Clause that requires continuous operations.
Then you have the Weyhouser (sp?) wells that HBP Thousands and Thousands of acres in Livingston Parish. They are the largest land owner in the Parish. They appear that they might have a Pugh clause that requires continuous operations. Just a guess though from the activity that we see. Again, I feel that Devon and others are going where the larger land owners are and thus to primarily protect lease acreage. And the little guys will get re-leased while the price is cheap.
Thanks Betty. I was in a hurry, got lazy and did not go back and get the right spelling. Thanks again.
I guess I was right!
Not sure this is best place to post this link, but everyone should read it and consider the implications:
Barbee, I agree with concerns of regulation and inspection by governmental entities. However, once again, the emphasis is placed on fracing and that is not the problem. Whenever concerns focus on water quality the conversation should be about casing integrity and surface activities, not on fracing. Until the public discussion if informed by facts we will go round and round and get nowhere. I wonder if the media is incapable of making the distinction or they deliberately misinterpret fracing to have a controversy to write about.
Skip, I firmly believe it's a case of "don't let the facts get in the way of a good story". I am constantly amazed that folks that don't know a kelly bushing from a pump jack are all of a sudden completion experts. The tell of how fracing will ruin drinking water, yet they never consider things like the fact that Elk City, OK gets the majority of it's drinking water from wells. I wonder if there has ever been a frac job done around Elk City? I'm not saying their should be no regulation or concern, but a little reason would be in line...
Skip and BPM,
Let me be clear--- we are all on the same team here. See Kirk's latest post regarding EPA's new notice requirement that must be met prior to fracing any new wells. This is classic "nose under the tent."
Anyone that has even a superficial understanding of the actual facts would realize that there is no cause for concern great enough to require the involvement of the federal government in new areas that have been traditionally regulated by the states. That said, get ready....
Barbee. I'm less concerned about questions of regulation, which I generally find necessary and prudent, than I am about our continuing failure as a society to have the factual debate that will actually produce some appropriate and rational actions. The energy industry should be held to a high level of environmental responsibility but it should be on substantive issues not chicken little junk such as fracing.
Well said. I will say that I would like to see our industry as a whole set a high standard for both communication with the public, and operating methods. If any need an example of this, come up here to the F'ville and check out the way SWN does things. On the other hand, Skip nailed it with the "Chicken Little" comment, their are real concerns to worry about.