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Started this discussion. Last reply by Belmont Boy May 2, 2010.
Shale drilling and lithium extraction are seemingly distinct activities, but there is a growing connection between the two as the world moves towards cleaner energy solutions. While shale drilling primarily targets…
ContinuePosted by Keith Mauck (Site Publisher) on November 20, 2024 at 12:40
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AboutAs exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More |
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As for your section, I am in a section that is being drilled in and I am still unleased. If a company decides to drill in your section, they will have to get a majority of the section to sign leases, then they will petition the state DNR in Baton Rouge and ask the commissioner to "force pool and unitize" the section and the landowners in your section should get a copy of the paperwork letting you know that they are about to force pool you. This allows them to proceed with clearing and site prep while continuing to try to sign you and others to leases. Check the Dept of Natural Resources Sonris site on the Government link on here every few days, if they get a permit to drill, it should be listed on there.
If you aren't offered an exceptable lease, you can refuse to sign but they can continue to work on a drilling location and prepare to drill and start the drilling process while continuing to try to sign you and any other unleased owners in the section. In my case, they went over 4 months from when a landman first contacted me until I heard from them again and the well was almost 2 months into the drilling process. You can sign a lease at any point during the process and the closer a well gets to completion, the more likey the lease may be favorable to you. I still have not signed and have not been made another offer, just notes from landmen asking me to call and that they MIGHT have a lease I would like.
If you or others you know get to the point that I am at, don't worry. You will eventually hear from them and the LA State codes give you certain rights as an unleased landowner, so you won't be left out. You might not get a big upfront bonus, but if they produce in your section, you will get revenue off the well, at 100% minus operating cost, instead of 20-25%. By state code, they have to report to you and let you know what the well will produce and what your portion is. DON'T let them scare you into signing a lease unless it's really a lease that is right for you and your land.
You hear about them but nobody has ever seen one.