Caddo Commision Needs to read up on Depth restrictions
From The Times
Caddo knocks mineral lease off agenda
By Adam Kealoha Causey • acausey@gannett.com • December 16, 2008 2:00 am
Buzz up! Caddo commissioners won't consider a mineral lease Thursday because at least one member believes they should wait for a bigger offer.
The commission voted the contract off its agenda Monday.
Red River Oil and Gas is seeking the rights to about four acres of parish rights of way on Gilliam Scotts Slough Road, northeast of Mira.
Commissioner John Escude led in the dissent with the parish administration, which brought the proposal to the commission. "We don't go around pimping our property, so to speak. I don't see the point to leasing this."
The commission garnered $17.6 million for Haynesville Shale mineral leases during the summer, with a payout of more than $30,000 per 585 acres up front.
The Gilliam Scotts Slough Road agreement would draw at least $600 an acre in lease bonuses and 25 percent of royalties from producing oil or natural gas wells. That would be a "paltry" sum, Escude said.
But the lease Public Works Director Robert Glass helped write does not include the depths of the Haynesville Shale, the rock formation that led to a now nearly dormant leasing frenzy during the first half of this year. A new lease would have to be written to drill down two miles — where many geologists say northwest Louisiana's natural gas-filled rocks are.
Last week's state Mineral Board lease sale saw per acre bids in DeSoto, Red River and Natchitoches parishes range between $225 and $611. The board approves mineral leases on government lands.
Commissioner Doug Dominick said, if necessary, he would abstain from voting on the lease to avoid ethical issues since he has relatives who live near Mira.
Glass, who said Red River Oil and Gas has signed leases with some nearby private property owners, pointed out Dominick Road No. 1 intersects Gilliam Scotts Slough Road.
In my not so humble opinion, Obviously the commision has no clue what it is doing. $600/acre is fantastic for the depths above the Haynseville. All they are doing is restricting yet another company from exploring shallower plays.
Caddo knocks mineral lease off agenda
By Adam Kealoha Causey • acausey@gannett.com • December 16, 2008 2:00 am
Buzz up! Caddo commissioners won't consider a mineral lease Thursday because at least one member believes they should wait for a bigger offer.
The commission voted the contract off its agenda Monday.
Red River Oil and Gas is seeking the rights to about four acres of parish rights of way on Gilliam Scotts Slough Road, northeast of Mira.
Commissioner John Escude led in the dissent with the parish administration, which brought the proposal to the commission. "We don't go around pimping our property, so to speak. I don't see the point to leasing this."
The commission garnered $17.6 million for Haynesville Shale mineral leases during the summer, with a payout of more than $30,000 per 585 acres up front.
The Gilliam Scotts Slough Road agreement would draw at least $600 an acre in lease bonuses and 25 percent of royalties from producing oil or natural gas wells. That would be a "paltry" sum, Escude said.
But the lease Public Works Director Robert Glass helped write does not include the depths of the Haynesville Shale, the rock formation that led to a now nearly dormant leasing frenzy during the first half of this year. A new lease would have to be written to drill down two miles — where many geologists say northwest Louisiana's natural gas-filled rocks are.
Last week's state Mineral Board lease sale saw per acre bids in DeSoto, Red River and Natchitoches parishes range between $225 and $611. The board approves mineral leases on government lands.
Commissioner Doug Dominick said, if necessary, he would abstain from voting on the lease to avoid ethical issues since he has relatives who live near Mira.
Glass, who said Red River Oil and Gas has signed leases with some nearby private property owners, pointed out Dominick Road No. 1 intersects Gilliam Scotts Slough Road.
In my not so humble opinion, Obviously the commision has no clue what it is doing. $600/acre is fantastic for the depths above the Haynseville. All they are doing is restricting yet another company from exploring shallower plays.
Views: 49
Replies to This Discussion
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Permalink Reply by The_Baron on
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I am now confused. I believe I have stated clearly that i believe this offer was more than fair given the location. I have not seen the lease form for this deal, but the bonus and royalty are very good.
being HBP is not a bad thing. It means you are getting ROYALTY CHECKS.
The parish can still lease the deeper depths. The parish can still get another bonus check.
I guess the real question graysands is: What are you talking about?
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Permalink Reply by The_Baron on
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Stop moving your comments graysands. i will just move mine.
What?????
Lay of the whiskey graysands.
The article said that the HA depths would be excluded. What does this have to do with trying to lease and HBP a unit????
You have lost your mind. Get back on topic.
The discussion is...Why would legitimate offer for the shallow depths be turned down???
This has nothing to do with the shale.
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Permalink Reply by Spring Branch,mineral owner on -
Graysands, what in the world are you talking about? You are as clear as mud. $600 per acre is a very respectable price for a lease which excludes the Haynesville. If I read the article in the paper right the proposed lease was for about 4 acres of public land.
"Pimping our property".....John Escude needs to take a crash course in "Oil & Gas 101" All he has managed to do is stand in the way of the local private property owners and take the acreage out of commerce because of an apparent lack of knowlege.
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Permalink Reply by The_Baron on
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The commision looks even more ridiculas when you look at the land description. Its all road right of ways. I bet that most of the neighbors have already leased. I have not reaserched this yet, probally won't don't have the time, but if it was me, I would wait to do the parish ROW's last. Don't want to telegraph your intentions in any play.
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Permalink Reply by essay on
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600/acre 25% is a reasonable offer, i don't see what the problem is. sounds to me like the commission needs to take their clownshoes off and re-visit the issue.
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Permalink Reply by Spring Branch,mineral owner on
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Judge further awards plaintiff his prorata share of 10 years of production from the unleased Haynesville Shale together with interest therefrom amounting to $83,870,615.
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Permalink Reply by Spring Branch,mineral owner on
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Lawsuit won 7-10 years later, Greysands......Earl's words (which you chose to use), not mine.
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Permalink Reply by Spring Branch,mineral owner on
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It will eventually be drilled, Greysands, whether you lease or not. What do you propose? Are you suggesting that every oil company in America is run by crooks? If so, on what do you base it, if not, then lease your shallow rights at a fair price. You do not consider $600 an acre and 25% royalty for shallow rights to be a fair price, I do consider it a fair price. You hold out for $5,000 an acre for your shallow rights and in the year 2100 your kid's kids will have $0 and my kid's kids will have their $83,870,615. Oh yeah, with the interest clock still running it's now $183,870,615.
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Permalink Reply by Spring Branch,mineral owner on
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I would suspect that you are saying that a dishonest landperson was the specific guy or gal who approached the Caddo Commission in regards to leasing that specific 4 acres in north Caddo Parish. I suppose you say this,as though it were true,to prove some point you are trying to make. I ask you, do you know who the specific land person or persons was (were) who approached the Caddo Commission about leasing the four acres we are referring to here? I assume you must know who they are because you seem to have specific knowlege that they are dishonest. If in fact they are not dishonest people, I would think they might be offended by your remarks.
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Permalink Reply by The_Baron on
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The lease would have to be approved by the mineral board. It is not their first rodeo you know.
Also It already has been put up for bid. YOu don't like the terms, or you think these leases are worth more, go to the mineral board and put in your own bid. -
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Permalink Reply by Spring Branch,mineral owner on
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I'll end by saying that you're confused about who doesn't have a clue. You have no idea what the price of natural gas will be 18 months from now. Heck, you probably don't even know what it closed @ today.
And your point was exactly to say that plenty of someones are dishonest or can't you remember what you posted an hour ago. -
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