Replies to This Discussion

Permalink Reply by Les Bamburg on October 19, 2010 at 3:02

Lee, this well must not yet be posted in Sonris as the only permitted well in the Section 14 has a planned depth of 3500 ft.

Permalink Reply by Lee Wise on October 19, 2010 at 3:46

Thanks for the reply Les, part of what I heard was that a deep water well was currently being drilled. Not sure if that is relevant or not. This information was 3rd hand, but historically a good source. Again thanks.

Permalink Reply by Highwayman on October 25, 2010 at 2:35

Already P & A'd. I think this was probably an operation to hold a National Forest lease. If I remember right, I believe the government leases in that area are configured in such a way that requires a well to be drilled every so often. Don't know for sure, just what I've heard. About every 10 years or so they will drill a shallow well somewhere in this area and P & A it soon after.

Permalink Reply by Skip Peel - Mineral Consultant on October 25, 2010 at 3:13

I'm not sufficiently knowledgeable concerning federal O&G leases for public lands to be positive but doubt that such a lease would include a "continuous drilling clause". The activity as described sounds much more like a timber company owning the mineral rights under a tract with another party as surface owner maintaining their "servitude" under the laws of prescription in the state mineral code. By drilling a well prior to expiration of the ten year prescription period, the servitude owner "resets the clock" and gets another ten years ownership. In instances where a large servitude can be maintained by a single well and the mineral owner has the financial ability to fund a well, this is not uncommon. The potentially complicating factor would be if the surface owner brings legal action challenging whether the well was in reality a good faith attempt to explore or produce as opposed to avoid loss of ownership through prescription.

Permalink Reply by Two Dogs, Pirate on October 25, 2010 at 3:49

Highwayman, if I remember correctly, most of the National Forest was expropriated with mineral reservations held in perpetuity by the grantor. The last I heard about this was about 8 years ago and the feds were trying to negate the deal that they had made with the folks, citing Louisiana's 10 year prescription laws.

Permalink Reply by Highwayman on October 25, 2010 at 3:57

I'm pretty sure you and skip are correct and this adds up with the history of this area having a shallow well drilled every 10 years or so. I remember being told that these were drilled more to keep leases than to find oil or gas.

Permalink Reply by Skip Peel - Mineral Consultant on October 25, 2010 at 4:03

The well is drilled to maintain a servitude, not a lease. In Louisiana our mineral law does not allow for the severance of the mineral estate and the surface estate in perpetuity. A lease expires with lack of production during the effective term. A servitude which is the right to development of the minerals remains in force for ten years regardless of any lease or leases unless production is established or a good faith effort is made to drill a producing well. A P&A'ed well does not maintain a lease, it does maintain a servitude.