The board is drawing a line in the sand for TMS operators that have failed to follow certain pooling regulations in their rush to lock up land positions.
Skip, any guess as to how long it will take the Board to adopt these new policies? It looks to me that this will significantly slow down new drilling permits and units. Do you think it will also result in more reasonable unit sizes and in you opinion, what would that be? More in the 800 acre range?
The MSOGB has obviously been asleep at the wheel, either by accident or more likely by design (under a directive). The danger here is a potential lawsuit by a landowner(s), especially if the rules are inadequate or are not made retroactive. Making the rules retroactive on the other hand will stifle development. Both should have seen their actions as likely to cause a problem eventually. Criticism of both is way past due and all the problems, legal and practical, that could result can only be laid in both their laps. These proposed rules don't define what "drilling in a timely fashion" means , do not address the ridiculous unit sizes they have been approving, or what they mean by negotiating in good faith or what a good faith offer is, etc. This is all a big recipe for a protracted lawsuit that could hold up drilling and royalty checks for years. The landowners are also at fault for waiting so long to object to the pillaging of their legal rights that has been going on under their noses, despite timely warnings and in-your-face permitting approval. Once again the oil and gas industry and the politicians prove, "if you give them an inch they will take a mile." Yes I am cynical - but for good reason!
Barnburner16
Skip,
Why isn't this on MSOGB letter-head? Did the board issue this?
Sep 25, 2014
M T
Thanks for keeping us up to date.
Sep 25, 2014
Steve
The MSOGB has obviously been asleep at the wheel, either by accident or more likely by design (under a directive). The danger here is a potential lawsuit by a landowner(s), especially if the rules are inadequate or are not made retroactive. Making the rules retroactive on the other hand will stifle development. Both should have seen their actions as likely to cause a problem eventually. Criticism of both is way past due and all the problems, legal and practical, that could result can only be laid in both their laps. These proposed rules don't define what "drilling in a timely fashion" means , do not address the ridiculous unit sizes they have been approving, or what they mean by negotiating in good faith or what a good faith offer is, etc. This is all a big recipe for a protracted lawsuit that could hold up drilling and royalty checks for years. The landowners are also at fault for waiting so long to object to the pillaging of their legal rights that has been going on under their noses, despite timely warnings and in-your-face permitting approval. Once again the oil and gas industry and the politicians prove, "if you give them an inch they will take a mile." Yes I am cynical - but for good reason!
Sep 29, 2014