Replies to This Discussion

Permalink Reply by RBH on April 30, 2011 at 12:50

Brazos Gas Unit was spud 1-23-2011 with no reported completion report filed

Hospital 2 is an active permit-not drilled or shown as spuded;

FYI, located in the middle between the above two locations, the Chesapeake Hospital #1  Decker Switch Field (Travis Peak) with production from 7/2009 thru 2/2011 of 173 MMCF.

Permalink Reply by Skip Peel - Mineral Consultant on April 30, 2011 at 12:54

Under LA. mineral law neither the filing of applications for unit orders nor the granting of those orders will hold leases.  Only "operations" leading continuously to the spudding of a well will forestall the expiration of most leases.  Yes, the lease language controls but standard lease forms used in the Haynesville Play do not contain provisions for unit applications to supersede "operations".  And I have never seen an Exhibit to a lease that included such a provision.  Since unit orders from the state carry no drilling requirement it would be irrational to allow leases to be held indefinitely with no prospect of development.

Permalink Reply by Skip Peel - Mineral Consultant on April 30, 2011 at 13:43

Operators in the Haynesville Play regularly file unit orders before permitting much less spudding a well.  The Office of Conservation provided for this exemption in the following memorandum.  The added emphasis is my own.

 

BOBBY JINDAL,GOVERNOR
State of Louisiana
DEPARTMENT OF NATURAL RESOURCES
OFFICE OF CONSERVATION
MEMORANDUM
August 19, 2008
SCOTT A. ANGELLE,SECRETARY
JAMES H. WELSH,COMMISSIONER OF CONSERVATION

TO: All Concerned
FROM: James H. Welsh,Commissioner of Conservation

SUBJECT: Exemption of Haynesville Zone units from production test requirement

The policy of the Office of Conservation has been to require a production test in the field prior to creating an undrilled unit for a particular interval unless a waiver of that requirement is obtained from this Office pursuant to Memorandum dated March 16, 1998. Effective immediately, the "Production Test in the Field" policy shall not apply to filings for units relating to the Haynesville Zone, and undrilled units may be proposed and created without a production test in the field or a waiver of that requirement from this office. For purposes of this exemption, the Haynesville Zone refers to that interval consisting primarily of shale situated below the deepest Cotton Valley sands and above the top of the Smackover Formation. The Haynesville Zone has been shown to be both laterally continuous and productive over an extensive area making this exemption appropriate and justified. In addition, granting this exemption will facilitate orderly development of this important natural resource.

OFFICE OF CONSERVATION OF THE STATE OF LOUISIANA
JAMES H. WELSH,COMMISSIONER OF CONSERVATION
Post Office Box 94275 • Baton Rouge, Louisiana 70804-9275 • 617 North 3rd Street· 9th Floor· Baton Rouge, Louisiana 70802
Phone (225) 342-5540 • Fax (225) 342-2584· www.dnr.state.la.us/conservation

Permalink Reply by jffree1 on April 30, 2011 at 13:32

Brammer Engineering-Hospital Gas Unit #2 was spud on 3-01-11 according to Rig Data.