BOBBY JINDAL
GOVERNOR
~tate of 1Louisiana
DEPARTMENT OF NATURAL RESOURCES
OFFICE OF CONSERVATION
MEMORANDUM
August 19, 2008
SCOTT A. ANGELLE
SECRETARY
JAMES H. WELSH
COMMISSIONER OF CONSERVATION
TO: All Concerned
FROM: James H. Welsh
Commissioner of Conservation
SUBJECT: Exemption ofHaynesville Zone units from production test requirement
The policy of the Office of Conservation has been to require a production test in the field prior to
creating an undrilled unit for a particular interval unless a waiver of that requirement is obtained
from this Office pursuant to Memorandum dated March 16, 1998. Effective immediately, the
"Production Test in the Field" policy shall not apply to filings for units relating to the
Haynesville Zone, and undrilled units may be proposed and created without a production test in
the field or a waiver of that requirement from this office. For purposes of this exemption, the
Haynesville Zone refers to that interval consisting primarily of shale situated below the deepest
Cotton Valley sands and above the top of the Smackover Formation. The Haynesville Zone has
been shown to be both laterally continuous and productive over an extensive area making this
exemption appropriate and justified. In addition, granting this exemption will facilitate orderly
development of this important natural resource.
OFFICE OF CONSERVATION
OF THE STATE OF LOUISIANA
~
--?/~ JAMES H. WELSH
COMMISSIONER OF CONSERVATION
JHW:MBK
Post Office Box 94275 • Baton Rouge, Louisiana 70804-9275 • 617 North 3rd Street· 9th Floor· Baton Rouge, Louisiana 70802
Phone (225) 342-5540 • Fax (225) 342-2584· www.dnr.state.la.us/conservation
An Equal Opportunity Employer

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can you give more details on this?
exactly what is it saying?
could you pls break it down one more level or two, I dont comprehend it?
Post it on the thread re. KSLA's interview with Angelle. Get them to ask him to explain it.
My take is that the law requires a "field" to be tested before units are formed. This would allow them to form units without drilling a test well in a field. Speeding up the process. I suppose this makes sense as the purpose of a test well is to prove the reserve is underneath, but in the HS world, everyone has HS underneath, it's just a question as to how much. So no reason to delay drilling for a silly test Mr. Gov'ner.

"The HZ has been shown to be both laterally continuous and productive over an extensive area making this exemption appropriate and justified."

I've been wondering about fields. Who creates them and picks the names - the commish? Do fields have a set size? Do they mean more than just a general reference to the area? I see there is now a Cross Lake North field.
Could it now be with improved technology & seismic testing, the cos. can demonstrate the data about the reserve without drilling? Kinda like medicine can now test with technology without opening you up to prove what's wrong?

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