Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on May 29, 2019 at 8:11

No.  The claim by LOGA and LMOGA is baseless.  It is actually pretty stunning that their claims get any traction whatsoever with the public. 

The first fact that exposes the falsehood is the constant announcements of new corporate investment in the state.  Much of this is in SW LA and the Mississippi River Corridor between Baton Rouge and New Orleans.  I'll post a link at the end.  Here in the Haynesville Shale companies spent more than $8B in the last few years to acquire development rights from the original play companies and continue to spend 100's of millions a year drilling.

Secondly, Don Briggs, past president of LOGA was ordered by a judge to give testimony under oath regarding the organization's claims that companies do not do business in LA because of fear of litigation.  Mr. Briggs, under oath, could not provide one example of a company not doing business in LA owing to fear of litigation.  I've got a link for that too. 

Finally, both these trade organizations constantly put out propaganda about trial lawyers and "frivolous litigation".  Then they point to the "bill board lawyers" knowing that many of us have a less than favorable impression of them.  There is one problem with this attempt at association, the "bill board lawyers" do not bring legacy lawsuits against members of the industry.  They might occasionally get a Worker's Comp case against an O&G company but their main bread and butter is vehicle wrecks which they rarely take to court because their business model is to settle as quickly and cheaply as possible with the insurance companies. 

All this propaganda tends to obscure the real issue.  And that is the O&G industry's attempt to take away or limit the rights of private property owners.  No law firm can bring a suit with any reasonable chance of success without having a client that has a good case for damage to their lands and waters.  When that happens the industry is in jeopardy.  LOGA and LMOGA try to reduce that jeopardy by disenfranchising the rights of the individuals who have been harmed.

https://www.businessreport.com/newsletters/boom-times-predicted-for...

https://www.nola.com/environment/2014/02/state_judge_throws_out_lou...

Permalink Reply by Lisa Melder-Johnson on May 29, 2019 at 8:41

Thanks Skip for reassuring words!  As a landowner you here so much out there and do not know what to believe.  But it looks like alot of budding activity in the State.  Just early stages of what is to come.  

Permalink Reply by Skip Peel - Mineral Consultant on May 29, 2019 at 8:53

You're welcome, Lisa.  The surge in investment has been ongoing for about ten years now.  It started with the Haynesville Shale land rush.  In the last 8 months of 2008, NW LA received an economic impact of $1.3 billion.  $900 million of that was a company paying a mineral owner a bonus, little drilling was going on at that time as exploration was just getting started.  There have now been ~ 3,000 Haynesville horizontal wells drilled by a number of companies.  That glut of cheap natural gas then set off a chemical and LNG boom in S LA.  The investments in S LA are continuing and should do so for some time.  None of these companies have avoided Louisiana or in fact complained publicly about litigation concerns.  EOG, ConocoPhillips and Marathon certainly didn't hesitate to spend millions to try and prove up the Austin Chalk.

I hope that the AC and TMS become successful plays in central LA.  The O&G industry trade groups have tried to keep from mentioning the good things going on up here because S LA did not have any unconventional reservoir plays.  If there was, no one would believe them.  You hardly ever hear them promote the chemical, refining and LNG boom in SW LA.  Things have been looking up for our state for ten years and counting.  And the tens of billions of dollars invested disprove the lie that companies avoid our state because of fear of litigation.

Permalink Reply by Lisa Melder-Johnson on May 30, 2019 at 10:11

Hopefully central Louisiana will be next.   I am in a unit that BLM has lease until 2022, but I am not leased as of yet.  Just makes me curious as to why Chesapeake was so active in this area in the mid 90's and now they have not come back to this area.    They are mainly in NW Louisiana & NE Texas.   They drilled several around my area before, so you know they have information.   The main person leasing all the BLM land is MBI out of ND & Michael J. Broussard Land Services Inc. has a small interest.   Patiently watching & waiting.

Permalink Reply by Skip Peel - Mineral Consultant on May 30, 2019 at 10:19

The LA Austin Chalk play back in the 90's almost bankrupted Chesapeake.  Chesapeake is not financially capable of jumping into emerging plays.  They have enough trouble making a profit on what they have.  Many suspect that the next area they sell of will be what remains in NW LA.

Permalink Reply by Lisa Melder-Johnson on May 30, 2019 at 10:30

Your so right, they were almost bankrupted.   There stock tanked.