Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on December 20, 2013 at 5:02

SWN announces intention to drill 14 vertical L SMK wells in 2014 and continues to form units of 1280 acres for horizontal wells.  I wonder if anyone has brought this to the attention of the Commissioner?  IMO this is another example of how the mineral code and DNR protocols are ill suited for horizontal development.

Permalink Reply by C.E. HACKSTEDT on December 20, 2013 at 5:25

Where is "Marion"?  Texas, Louisiana or Arkansas

Permalink Reply by Skip Peel - Mineral Consultant on December 20, 2013 at 5:29

A town in north central Louisiana.

Permalink Reply by Columbia1 on December 20, 2013 at 11:05

Skip,

Lot of units larger that this one in central Louisiana.  Please explain to me why IYHO this is an example of how the mineral code and DNR protocols are ill suited for horizontal development.

Permalink Reply by Skip Peel - Mineral Consultant on December 20, 2013 at 11:14

Specifically the Commissioner approves large units to allow for proposed horizontal lateral lengths but does not mandate that horizontal wells be drilled thus allowing the entire unit acreage to be HBP by a single vertical well.  The mineral code was composed and the DNR protocols developed in the age of vertical wells.  Neither anticipates the ambiguities that arise from horizontal development.  The courts are left to interpret the mineral code when those ambiguities result in litigation.  I'd prefer to see a rewrite of the code that recognizes that it must regulate a different reality than existed at its inception.

Permalink Reply by Ed on December 20, 2013 at 19:54

Well said Skip.

Permalink Reply by Columbia1 on December 21, 2013 at 3:05

Thanks, Skip; agree with Ed on the well said.  I figured your comment would be something along those lines.  I agree totally that it has become a land grab.  In 1800 to 2000 acre units in central Louisiana with a single horizontal well with two legs how reasonable is it to expect that well to draw from over a mile on either side of the horizontal legs.

Permalink Reply by Skip Peel - Mineral Consultant on December 21, 2013 at 3:42

Generally speaking, the area around a horizontal wellbore that is fractured in the completion operation is ~ 300' in radius.  This is theoretical of course and is reflected in the state spacing regs.  Few target zones within a tight formation are so thick that there is a need to fracture the rock beyond that distance.  In fact fracing out of a target zone may create problems.  Personally I do not have a serious concern at this time with units up to 1920' (three stacked sections) as long as the operator drills a horizontal well that approaches the maximum spacing limits.  There are many reasons for the large units that make business sense and are acceptable to the Office of Conservation.  What I am concerned about is how the Commissioner will handle the specific case I am stating, namely vertical wells being drilled in units designed for horizontal wells. 

Permalink Reply by Ben Barnhill on December 20, 2013 at 12:44

Skip, when you say Marion does that include the area proximate to the Sharp and Dean wells?

I ask because my sister and I own 126 acres that bordered the drilling unit with the Dean well (I think). I am not good with finding locations as related to map plats.

Recently I received a letter from Kingfisher asking for permission to conduct "geophysical operations" to commence in June.

Connecting that data point with your post makes me more hopeful that we may be part of a future drilling unit next to the Dean well.

Permalink Reply by Skip Peel - Mineral Consultant on December 20, 2013 at 13:06

The town of Marion is located in Sections 10, 11, 14 & 15 of Township 22N - 2E.  The Dean well is S31 - 22N - 1E.  The Sharp in S22 - 22N - 1E. The Sharp is the closer at approximately 6 or so miles to the West.  There is an application for a drilling unit in the Marion Field, S28 & 33 - 23N - 2E which is closer being about 2 miles NW of Marion.  Anything in the Marion area would be in the pressure fairway where SWN will drill 10 wells in 2014.  Suggest that you learn the Public Land Survey System so that you can follow the activity by section-township-range.  Use this link: 

http://en.wikipedia.org/wiki/Public_Land_Survey_System

Permalink Reply by Ben Barnhill on December 20, 2013 at 13:08

Thanks Skip, looks like I have some homework to do.

Permalink Reply by Skip Peel - Mineral Consultant on December 20, 2013 at 13:26

Considering that your mineral interest is in an area where SWN will be forming units and drilling wells I suggest that you also order a map that shows section-township-range.  The one I most often recommend is, THE ROADS OF LOUISIANA available from Mapsco.  I don't know if the price is still $19.95 but it is a reasonably priced map which includes even the backroads of the state.

http://www.maps.com/map.aspx?pid=4086

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