Replies to This Discussion

Permalink Reply by Rick on October 18, 2008 at 17:44

Harold, I would advice you to go to the meeting and see what is said and what goes on. I didn't go to the meeting for my section back in May because I thought it was just some kind of formality and based on old shallow drilling and activity in NW La, I didn't think it meant much; but the deep gas wells are a whole different animal and me and alot of other people that got those kinds of notices a few months back realize now we probably should have gone to see what went on.

That is probably the preliminary hearing for a request to force pool and unitize and is most likely an attorney that represents Encana and possibly a representative from the state. If no one shows up or if there is no opposition, then there won't be a second meeting, they will proceed to Baton Rouge and you should get another letter at that time telling you of a meeting with the Comm. of Cons. for Encana to present their request. I don't know of any request in the HS that have been turned down.

There is nothing you can do about the force pool request but wait for the state's actions, unless you have a real good objection to why they shouldn't get it. Encana can go ahead and start drilling in the section if they want to and might if they have most of the land owners under lease. There has been alot of discussion on here about exactly how much is needed but the figure I have seen the most is 70-75% of the 640 acre unit. If you are not leased, someone will most likely approach you before much drilling takes place or while drilling is taking place.

One thing I would try to find out and try to get in writing if I could, is if you or others don't lease in the section that is force pooled, how will your right to recover your part of the production be handled. That is the one thing I wish I would have gotten a firm answer on because I am in a section that was owned by 4 other families and my 1.16 acres and they drilled and have finished a well and I have not received any information from Chesapeake even though our state law says they are suppose to contact me and I have tried contacting them 3 times, so don't count on the state laws and codes to protect you unless you are willing to spend the money on getting a lawyer to get their attention.

If you go unleased, you are entitled to 100% of your gas revenues minus the cost of paying for the well and operating the well once it is in production. Once the well has paid for itself, you would get 100% of your rights minus monthly operating cost. Estimates I have seen on here range from 25-40% for operating cost which would leave you 60-75% if they are right, which is still better than 20-25% but you will have missed the upfront lease bonus and might have to wait quite awhile before you see any revenue for your part.

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Permalink Reply by Les Bamburg on October 18, 2008 at 20:12

Harold, it looks as though EnCana is forming units in the middle of Red River Parish as there are others being created to the southeast of you also. Can you list the five Haynesville Shale units including unit name and S-T-R?

Have you leased already as this would be a factor in next steps.

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Permalink Reply by Harold (t12n r9w s6) on October 20, 2008 at 10:25

Les
It appears that Encana is going after s6 t12n r9w (HOSS RA SUF)- s35 t13n r9w (HOSS RA SUB)- s2 t12n r9w (HOSS RA SUC) - s11 t12n r9w (HOSS RA SUD)and s14 t12n r9w (HOSS RA SUE). I havent leased or even been contacted about leasing. My property is only about 3/4 of an acre in the middle of Edgefield on Oak St (2 lots with a house on one of them)

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Permalink Reply by Les Bamburg on October 20, 2008 at 12:41

Harold, thank you for the information. By the way what field name is EnCana using for the new units?

If you can get away I would suggest you go to the meeting in Natchitoches on Nov 11th. Just note that you or someone else has to request the conference or it may be cancelled. They actually have another similar meeting planned for 10 am on the same date. At the conference you could ask about a lease offer. This would at least give you something to evaluate. You may also want to check the courthouse records to determine if any other O&G company has leased acreage in your section.

EnCana has formed units in Sections 31 & 32 north of you but the closest well is the currently drilling Elmwood Land 33 #H1 about 2 miles northeast.

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Permalink Reply by Harold (t12n r9w s6) on October 21, 2008 at 12:20

Les, they are using the Carroll Creek Field for the new units. I also now live in south louisiana now, driving a vaccum truck for CHI hauling saltwater from oil and gas leases, so it will be hard for me to get to the courthouse and check records but thanks for the advice.

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Permalink Reply by Les Bamburg on October 21, 2008 at 14:58

Harold, I definitely understand being away from the area and not having full access. Thanks a lot for the Carroll Creek Field name as that was my guess. EnCana is also forming new units for the Liberty Field.

You can request EnCana send you a list of Interested Owners which may show you if other O&G companies are in the section.

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Permalink Reply by The_Baron on October 21, 2008 at 6:53

These are Hoston units, not Haynesville.

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Permalink Reply by Harold (t12n r9w s6) on October 21, 2008 at 12:22

Baron, Encana is seeking forced pooling for all three, The Hosston Formation, The Cotton Valley Formation and the Haynesville, according to the letter I recieved.

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Permalink Reply by mary on October 23, 2008 at 7:36

Do the research. I'm not sure if this is the same issue but Barnett Shale is similar to Haynesville and I understand that there have been requests made to the Texas RR Commission to reduce the size of units, not increase the size. This is due to the tight formation of shale and the inability to drain such a large area. Remember, they have been producing for a much longer time and have more data. The Commissioner seems to be siding with oil companies on every request because there is no opposition. Of course most people have to work and don't have the luxury of driving all over the state to fight to protect their rights. I thought that was what government was supposed to do?

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Permalink Reply by charles billingsley on October 23, 2008 at 9:01

I went to a similar meeting last summer, held by EOG, when they planned to apply for several units in DeSoto Parish where i have land. Some were 960 ac. units, which, of course, are unacceptable. I also objected to their definition of the "Jurrassic Zone" (depths of 9500' to 13000') as too much for a single unit. I was surprised when they revised their application based on the objections. i lost a day of work going to Lafayette, but feel like it was all worthwhile. i think you should request the meeting and attend, even if you are the only one there.

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Permalink Reply by mary on October 23, 2008 at 9:26

Harold, read the post in the south caddo parish group. It has a lot of useful information.I think everyone is taking their eye off the ball here and only fretting about the leasing slowdown and oil companies not honoring leases. These decisions are being made behind the scenes to appease the oil companies (not the landowners) so it's up to us to demand answers and protection of our rights.

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Permalink Reply by b. davis on October 23, 2008 at 12:43

I also received the letter about force pooling in Liberty Field. I contacted Liskow and Lewis law firm via email and cert. letter advising them that I did in fact want he meeting to be held. The attorney, his assistant and a geologist have called me in attempts to answer any questions I may have so the conference wouldn't have to be held. They acted as though I was the only person requesting the meeting when I know that to be untrue. I also requested a list of the interested parties mentioned in their letter. It was emailed to me and I am willing to share if anyone is interested. It is volumous to say the least. I'm not sure what can be done to protect our rights but I would suggest to everyone that they request the tentative meeting be held and don't allow them to "answer any questions you may have" until that meeting. I have been told by my neighbors that they were told the meeting wasn't necessary as the sections have ALREADY been unitized (another lie). I have plans to speak to an attorney tomorrow and will get back to you....any help anyone can give would be most appreciated.

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