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Permalink Reply by Skip Peel - Mineral Consultant on Friday

The notice letters are sent to all "Interested Parties" as evidenced in the parish public records and those immediately adjacent to a distance of 1000' although they are not included in the units that Petro-Chem applies to create.  The local hearing is a waste of time unless you have a geological issue to raise and a certified geologist to defend it.  I suggest that it is not worth the time to request or attend.  The application, once approved, becomes a Field Order and allows Petro-Chem to force pool all interests within the boundary of the units.  That is leased mineral owners, unleased mineral owners and any parties with a working interest (those who hold leases but not not operate the  wells that may be drilled).  All those parties will share in the production from any and all unit wells although the regulations covering how they share are different for each.  The bottom line is that everyone within a unit will receive their prorated share of unit production regardless of the number of unit wells drilled or where in the unit they are drilled.  Peto-Chem is one of the last active independent O&G companies in our part of the world.  I suggest that your let them drill you some wells and hope those wells are productive.  Good luck.

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Permalink Reply by J. Boyd on Friday

Thanks Skip;

I appreciate your quick reply. As always your insights are always valuable.

Jim

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Permalink Reply by Skip Peel - Mineral Consultant on Friday

You're welcome, J. Boyd.  I'm glad that Petro-Chem is still drilling wells and wish them luck also.

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