landowner

Homer Nacatoh Sand Unit Conservation Order No 719-1 Claiborne Parish, LA

I am trying to determine if interest in the Homer Nacatoh Sand Unit Conservation Order NO 719.-1. Claiborne Parish, LA,  would still be considered as held by production or otherwise for the following sections; I am not sure about Louisiana prescription laws.  The unit is much larger but grandparent only had interests in these particular sections.

Thanks for your input on this!

Section 20 T21N, R7W;  Section 19, T21N, R7W;  Section 18, T21N, R7W;  et al

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on April 15, 2025 at 9:28

Walker, the field wide unit reported 4,461 barrels of oil for February, the most recent production reported.  So prescription is not an issue.  The question would be is 4,461 "production in paying quantities"?

In Louisiana, for a mineral lease to be maintained beyond its primary term by production, that production must be "in paying quantities"
Production in paying quantities generally means that the production must be sufficient to induce a reasonably prudent operator to continue production to make a profit or minimize loss. For oil and gas, this means the revenue from the well should exceed the costs of operating and marketing it. For other minerals, a reasonably prudent operator would continue production based on the specific circumstances and industry practices. In the case of lignite or coal, the total production of a project can be considered, not just from a single lease. The standard focuses on a prudent operator's decision to continue operating for profit, not speculation. Courts consider revenue, operating expenses, and other circumstances like reservoir depletion and product price. Importantly, the lease itself may define "paying quantities," and courts may resolve disputes on a case-by-case basis. 

landownerPermalink Reply by Walker on April 15, 2025 at 11:48

Thanks for the response.  


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on April 15, 2025 at 11:54

You're welcome.  The production in paying quantities test is something that requires an experienced attorney and some legal expense.  A succesful end result should be significant to go down that road.


landownerPermalink Reply by Eric Polansky on April 17, 2025 at 5:14
Thank you for the Info Walker , any word on Arizona out in Claiborne ? I keep getting letters from Community Minerals trying to Buy , but research I have done on them doesn't pan out , but either way definitely no interest in selling MR's

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