Replies to This Discussion

Permalink Reply by Ouiser on August 28, 2008 at 2:53

Anyone?

Permalink Reply by Rick on August 28, 2008 at 3:15

Ouiser, I'm not sure I fully understand your question, but if you are referring to old or existing wells, there apparently were different laws or codes that were in effect in the past, as indicated by what is happening with Kassi's group in Stonewall where old wells can hold land leases for decades. There might have also been different rules for how far apart the wells were spaced as compared to the planned spacing of the HS wells, which has been stated as being 1 per 80 acres in each unit, but has already apparently been revised in the Elm Grove area. From reading several post on this site, I am beginning to think that the O&G's can pretty well have their way the the Commission of Conservation, so any rules or codes are apparently made to be bent or broken at a whim.
I have noticed that with the HS drilling, there are several locations already that have 2 wells being drilled within a lame armed rocks throw of each other, I haven't been on the locations, but some may actually be on the same location pads, they seem so close together. I think the purpose of this is for cost and convenience of the O&G's, it keeps them from having to build as many multiple location pads and allows for central placement of gas pipelines. The wells, for the most part, seem to be located in or near the corners of each unit and very near the joining section lines and as future wells are drilled, will probably go to opposite, in line corner for next wells, to keep close distance to before mentioned gas pipeline.
Another thing this accomplishes is to lock down and Hold By Production, two units at the same time and if they have done their geology right, if there is gas at one location, with the rigs only a few yards apart, there should be gas at both, thus ensuring they can HBP both sections. Some speculation is that they may do this in as many of the "sweet spot" sections as they possibly can so they can HBP the unit and hold the lease, then come back later and drill other wells in the most productive units.

Permalink Reply by Ouiser on August 28, 2008 at 4:08

Thank you for your reply Rick. In our case, we no longer own the land, but when we sold it - we retained the mineral rights. There was already some shallow wells producing that we received (and still do) little checks on periodically. It is those wells that we can't get a straight answer on, even from a local attorney. Unfortunately, all of us involved live out of state. We understand those wells can hold "some" of the property, but we can't seem to get an answer on how "much" of the property they can hold as there is nothing in the lease from the 70's or 80's when it was originally leased.

Thanks again for your response!

Permalink Reply by Ouiser on August 28, 2008 at 4:31

Thanks KB. I think maybe we will be looking in to some of the Oil and Gas attorneys. We did in fact retain a Louisiana attorney. In fact he was local to the area, but you are also correct to assume it turns out he also represented the O&G companies. We were just surprised when he said yes you have land to lease, but can't give a diffinative answer on how much because the current shallow wells hold "some" of the land. Well, we knew that. We just wanted to know how "much" of the land they hold because after looking over the lease both by us and other attorneys including the one down there - the lease does not specify how much they can hold of the land. We understood the 90 day thing etc. holding part of it but no where in it does it state if there are 6 producing wells all within 40 feet of each other that they can hold well over 200 acres of land. I know I'm not making myself very clear because I don't understand everything I know about this as they say. I will take your advice though and see if we can find an attorney that specializes in this kind of thing. Thank you for your response.

Permalink Reply by insomniacnla on August 29, 2008 at 5:06

Ouiser,

It sounds like you need to know what size unit was formed for the producing wells so that you can determine how many acres of your land is within the unit.

You can call the Louisiana Office of Conservation at (225)342-5524. You should ask "I receive royalties on well serial number __________. Could you please tell me the size and location of the unit for this well."

You will need to have your section, township and range and if you know the serial number of the wells in which you receive royalties on, that would help them answer your question also.

Permalink Reply by Ouiser on August 29, 2008 at 6:49

You are great! Thanks so much. Just so happens we have all that information including pictures of the wells showing serial numbers. (even the one the co. is claiming that seems to be pumping.......problem is there is no motor. must be one heck of a battery pack! LOL)