tag:blogger.com,1999:blog-43527853742514943612024-02-19T17:42:07.053-05:00Go Haynesville ShaleAll things, people, companies and places related to the Haynesville Shale oil and gas field in Northwest Louisiana. The Haynesville Shale is rich organic shale between Bossier and Smackover formation. The shale lies between 10,500' and 13,000 feet. Visit GoHaynesvilleShale.com.Unknownnoreply@blogger.comBlogger12125tag:blogger.com,1999:blog-4352785374251494361.post-50689895732621731382009-08-03T21:57:00.001-04:002009-08-03T22:01:02.875-04:00A Discussion with Congressman Fleming on the Haynesville Shale<img src="http://i589.photobucket.com/albums/ss336/Haynesville/8-20-09002.jpg" border="0" alt="Congressman Fleming in the Cloak Room on the Hill"/><br /><br /><i><b>My Interview with Congressman Fleming</b><br /><br /><b>by Keith Mauck<br />Publisher<br />GoHaynesvilleShale.com</b></i><br /><br />I arrived at Congressman John Fleming’s office, which is located in the Longworth Building, around 3:30 and took a seat. Soon thereafter, Fleming came out of a meeting. Of course, as the way things go at Congressional offices, Fleming had to run down to the floor to cast a vote. So after a brief intro and a handshake, he was gone as quickly as he appeared. So I sat there a little longer. Amy Jones, the Communications Director who scheduled the interview, came out and introduced herself. Nice gal.<br /><br />A map of a proposed Haynesville Shale boundary hung prominently on the wall above a staffer. I recognized the map from a presentation Fleming had made on the floor. I decided I had to get a picture of it, so you all have something else to debate. Here's the map.<br /><center><img src="http://i589.photobucket.com/albums/ss336/Haynesville/7-20-09028.jpg" border="0" alt=""/></center><br /><br />Fleming did come back. I was ushered into his office and we took seats across from each other. A couple of staffers filed in and took seats to my left; Matt Ross, a Legislative Correspondent on Energy Issues and former landman, and Jamie Hennigan, the Congressman’s Energy Policy Advisor.<br /><br />During the interview, it became obvious to me that Rep. Fleming has taken the time to understand the shale issue. Some of you may remember that candidate Dr. John Fleming took part in an online chat on this site during the campaign. It was obvious then that he knew little about the industry, but probably for good reason; one, he was busy with a medical practice and two, he lives in Minden, LA which is beyond the Haynesville Shale zone. However today, it is clear that Rep. Fleming has embraced this issue and has opted to run with it. For that, the 4th District is sure to benefit.<br /><br /><b>GHS:</b> So how has DC been treating you since your arrival? What’s been the biggest adjustment for you?<br /><br /><b>Fleming:</b> We’ve adapted to urban living here on the Hill. My wife is up here with me because our kids are grown. I don’t have to go home to see my wife – thank goodness, but I do go home every 2 weeks or so and we do stay busy in the district with quite a few events, such as a recent tour of a drilling rig. So yeah, I try to get to the district often and touch every part of the 4th district at every level.<br /><br /><b>GHS:</b> What do you miss about everyday living in Minden, LA?<br /><br /><b>Fleming:</b> I do miss the freedom that allows one to just hop in the car and go. We live on Capitol Hill, so we walk to most places. We do have a car here, but often it’s just not practical to use it.<br /><br /><b>GHS:</b> Do you miss the medical practice?<br /><br /><b>Fleming:</b> I certainly have enjoyed my practice, but I didn’t leave practice to go into a boring field. I find this to be very challenging. Every day here is very interesting and very exciting.<br /><br /><b>GHS:</b> What is your legislative philosophy and how did you develop it?<br /><br /><b>Fleming:</b> My background is in business, medicine, and the military so these experiences have shaped my philosophy. My mission, as I see it, is to move America back to the values of our Founders; including freedom of the individual, capitalism and the right to bear arms. The piling of debt by this federal government through fiscal irresponsibility and government over reaching via central planning is setting us up for failure. Though I was concerned before, once I got to DC, I found it to be much worse (i.e. the attack on shale drilling) than I thought. Our decline is occurring more rapidly than I had anticipated.<br /><br /><b>GHS:</b> As John Fleming the candidate, you participated in a live online chat on GHS. Since then I imagine there has been quite a bit of learning taking place on natural gas and shale. What’s the biggest complexity regarding the Haynesville shale in your opinion?<br /><br /><b>Fleming:</b> I find the technology of shale drilling ingenious. It’s not overly complex. Sometimes simple things are a thing of beauty and this is the case with the production of natural gas from shale. As you well know, at one point, we didn’t even know that gas was packed into the shale or if we knew it, we didn’t know how to get to it. I think it’s a great process. Natural gas has ½ the carbon footprint as coal and there isn’t a renewable form of energy that can come close to competing with its low cost. We (the U.S.) are the Saudi Arabia of natural gas.<br /><br />Now, I think the creation of infrastructure to take advantage of this natural gas is the next hurdle we have to clear. We need to get to the place where you can fill up your car with natural gas as we do now with gasoline. We’re the Saudi Arabia of natural gas, so why should we be buying oil from them when we have an abundance of natural gas.<br /><br /><b>GHS:</b> So what do you see out there in the 4th District? Any observations from your point of view on the development of the play?<br /><br /><b>Fleming:</b> People who call in to the office are primarily concerned with Federal Energy process and recognize the potential of natural gas in helping wean the U.S. off of foreign oil. The office stays in constant contact with the LA Office of Conversation.<br /><br /><b>GHS:</b> What issues and questions are raised by your constituents regarding the Haynesville Shale?<br /><br /><b>Fleming:</b> I hear concerns regarding infrastructure maintenance. People want to make sure our parish roads and highways are well maintained and that the tax payer isn’t left holding a large bill at the conclusion of production. Production companies have told me that they want to do their part in maintaining the infrastructure of local communities; making sure that the roads are left in good condition after production slows. One way or another, we have to work as a community. Residents want the exploration companies to be there and the E&Ps want to be there, so it’s a win-win. But still, we don’t want these companies to leave in 20 years and leave destroyed infrastructure without the tax base needed to repair the roads.<br /><br /><b>GHS:</b> What about groundwater contamination? In your mind, are there any legitimate concerns regarding how hydraulic fracturing is being conducted?<br /><br /><b>Fleming:</b> My only concern is that it may get hyper-regulated.<br /><br />Hydro Fracking has a target on its back. Representatives on the Natural Resources Committee, one of the committees I sit on, are attempting to place hydro fracking under EPA oversight. I think the process of hydro fracking is sound because we’ve been unable to find any examples of ground water contamination resulting from fracking. Additionally, states are already regulating this process so why place it under more regulation? Also disconcerting is the possibility that involving the EPA could tack on an extra 18 months to the permitting process. This seems like an attempt to: 1) Increase revenues into the federal budget for social engineering and central planning and 2) Push a green agenda that is unable to compete on the open marketplace.<br /><br /><b>GHS:</b> Do you work with Louisiana’s Department of Conservation on any of these Haynesville Shale issues? Is there any coordination with state departments?<br /><br /><b>Fleming:</b> With the emergence of legislation to regulate the process of hydraulic fracturing, we’ve been in close communication with staff and the District Engineer of LA Department of Conservation to discuss:<br />- The effectiveness and efficiency of State regulation.<br />- Possible adverse effects of increased federal regulation.<br />- Who plays a roll in the regulation of this process at the State level.<br />- We inquire about the number of cases of water contamination (the department has assured us that there have been no confirmed examples)<br /><br /><b>GHS:</b> You took a tour of a Chesapeake Energy drilling rig recently; what rig was it and what did you come away with from that tour?<br /><br /><b>Fleming:</b> We toured the NOMAC 48, which is drilling the Indigo Materials 31H-1 Well in the southwestern part of Caddo Parish. The well location was off the Woolworth Road. I had never been to a rig before, but I was impressed with the improved technology being implemented in the drilling process. The control panel looks like the cockpit of an aircraft with all these computer screens displaying metrics. There’s a guy with a joy stick directing the drilling. There is very little guess work in the process. Every action is backed with scientific/seismic data.<br /><br /><b>GHS:</b> We seem to hear mixed messages coming out of DC. We hear that natural gas is “abundant and ours,” but yet when legislation is passed, natural gas is conspicuously missing from the mix. Congress is now considering federal oversight on hydraulic fracturing. A while back, President Obama proposed removing standing tax exemptions for independent oil & gas producers and we also see Salazar, Secretary of the Department of Interior going back and modifying previous leases on federal land.<br /><br />What’s up? Do policy makers inside the beltway view natural gas as a viable alternative to oil or not? If so, they sure do have a funny way of showing it.<br /><br /><b>Fleming:</b> I want to warn people that DC is not thinking logically on these energy issues. Basically, you’ve got liberal politicians, unions and environmentalists and the last thing they want is for the U.S. to become energy independent. Though the rhetoric is about lowering cost and becoming energy independent, the actions of many here in DC push for the exact opposite. Many have the goal of lowering this nation’s energy use. The only way to accomplish this is to raise the cost of energy which will suppress energy consumption, but this also suppresses our manufacturing capabilities (i.e. jobs). As a result, these people aren’t interested in technologies that are going to make this nation more independent or lower the cost of energy. This runs counter to their stated goals. I experienced this first hand during a hearing in which a “green energy” academic admitted that the goal was to keep energy prices elevated in order to make solar and wind competitive with natural gas and oil based energy.<br /><br /><b>GHS:</b> Do you anticipate that natural gas will be a centerpiece to our energy policy? Will T. Boone’s PR push for CNG succeed?<br /><br /><b>Fleming:</b> I think it should. It’s a wonderful transition fuel that could assist us in moving over to the next major energy source and who knows what that will be. I think T. Boone is right CNG is a great transition fuel - perhaps a 100 year transition fuel. But, there are a lot of forces at work in here in DC that want us to go back into the “stone age.” They are not interested in using any fossil fuels at all. They don’t want us using nuclear which has zero carbon footprint. So we do have many of the technological advances we need in place – even technology removing the Co2 from natural gas. We potentially have everything we need to have our cake and eat it too - we have the capability of being energy independent, having low energy costs and fueling this nation’s vast manufacturing engine – but like I say, we have many here in DC who don’t want to see any fossil fuel source succeed.<br /><br /><b>GHS:</b> HR 1835 (modifying alternative fuel credits to include CNG and LNG) includes credits for producing vehicles fueled by CNG or LNG or vehicles converted to operate on CNG, increases natural gas vehicle requirements for the federal fleet and provides grants for natural gas vehicles research and development. Are you supportive?<br /><br /><b>Fleming:</b> It remains to be seen whether this bill will gain any traction, but yeah, I am a co-sponsor of this legislation. Boren is one of the few Democrat exceptions on the Hill – he gets it. I am extremely supportive of HR 1835.<br /><br />Once again that pesky voting buzzer began piping up, but the Congressman who had already been generous with his time, invited me to tag along down to the cloak room where he could answer more questions in between floor votes. So of course, I took him up on it. We hiked from the Longworth Building over to the Cloak Room via the house basement tunnel. Matt Ross, the LC tagged along too. We chatted while walking.<br /><br /><b>GHS:</b> In typical beltway fashion the Waxman-Markey climate bill is over 1,000 pages. Have you gotten a handle on what this bill means for the average American?<br /><br /><b>Fleming:</b> Well, this is just an attempt to collect more tax revenues. Even Green Peace has stated that this is nothing more than a political move and that it’s going to do nothing for the environment and climate change. They know that, we know that. It’s nothing more than a Trojan horse for more taxation. If this is implemented, we’ll feel this when we pay elevated utility bills or when we see jobs go good bye. Manufacturers here in the U.S. can’t compete with overseas competitors who abide by these same policies. We are in a world-wide economy now and we are already losing manufacturing jobs overseas; cap n trade, or cap n tax will only exacerbate these losses. I look to Spain as the potential disaster cap n trade could be – 18% unemployment rate and skyrocketing utility bills.<br /><br /><b>GHS:</b> How will the cap n trade program be administered and how will these allowances be auctioned off?<br /><br /><b>Fleming:</b> My understanding is that this becomes a function of Wall Street and creates a whole new industry – similar to the derivatives industry. The level of sophistication involved makes Wall Street the default suitor for such a feat and essentially a government contractor. The idea on its face is folly. However if we accept, for the sake of argument, this erroneous idea, why should we put the authors of the mortgage meltdown in charge of auctioning off these carbon allowances? Oddly enough, Italy is one of few countries also moving towards a cap n trade system. According to a recent hearing witness, the mafia sees these carbon-allowance transactions as a potential source of large revenue. Bottom line, somebody is going to make money off this thing and it’s not going to be the consumer.<br /><br /><b>GHS:</b> In your mind, how do we move off of foreign oil into a new energy era? How would you lay out a plan to achieve this?<br /><br /><b>Fleming:</b> I have signed on to several plans. Essentially, I believe we should open up ANWAR, permanently open up off-shore drilling, build 100 new nuclear plants, push forward on natural gas and certainly continue research on renewable energy sources. Personally, I am not for subsidies for solar or wind until the technologies have been proven. At this point wind and solar energy, on a mass level, are not cost effective. For example, when the wind isn’t blowing, we still have the infrastructure sitting around not being used, so further infrastructure is needed to kick in energy sources when the wind isn’t blowing. So, nobody is using wind and solar to any large degree except in nations that subsidize it. I never quite understood why T. Boone Pickens pushed wind energy so hard. The technology just isn’t where it needs to be yet. Perhaps, one needs to talk about renewables in order to get a seat at the table?<br /><br /><b>GHS:</b> Lastly, are you ready to declare your intent to seek reelection in 2010?<br /><br /><b>Fleming:</b> (chuckle) Well, this probably isn’t the venue to do that, but let’s just say that I have no interest in resigning.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4352785374251494361.post-15434253532237530562009-07-28T13:25:00.002-04:002009-07-28T13:33:24.761-04:00An Interview with Jim Welsh, Commissioner for the Louisiana Office of Conservation on the Haynesville Shale<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCcdOPO78tR7p22rBDyPMt9HJj7gapFXu1iSL8xDh8auNQfei2FpRNpmBct-htN-4Fs3ybyXuzEuJbS0g16fiCu68ioJL_RIbk2R39DAHYf-Wt219w0bqnSxgo4IyvsBCs8LCa_gU4k97v/s1600-h/375_206.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 320px; height: 176px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCcdOPO78tR7p22rBDyPMt9HJj7gapFXu1iSL8xDh8auNQfei2FpRNpmBct-htN-4Fs3ybyXuzEuJbS0g16fiCu68ioJL_RIbk2R39DAHYf-Wt219w0bqnSxgo4IyvsBCs8LCa_gU4k97v/s320/375_206.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5363564799789751010" /></a><br /><br /><strong>An Interview with Jim Welsh, Commissioner for the Louisiana Office of Conservation<br /><br />July 28th, 2009<br /><br />By Keith Mauck<br />Publisher<br />GoHaynesvilleShale.com</strong><br /><br /><BlogItemURL><br /> <a href="www.gohaynesvilleshale.com">Story</a><br /></BlogItemURL><br /><br />Jim Welsh has seen the tenures of 9 former Louisiana Office of Conservation Commissioners come and go since he began his civil service career with the Office back in 1965. Today Jim is serving as the 23rd Commissioner and getting to oversee the Office during this historic Haynesville Shale drilling frenzy. Jim took time away from a honey-do list to speak with me by phone on a host of topics. <br /><br />GHS (GoHaynesvilleShale.com): So let’s get a quick run down on the duties of the Louisiana Office of Conservation (LOC).<br /><br />WELSH: We’ve been around since 1912. We have a lot of responsibility related to the oil and gas industry. We regulate pipeline, natural gas storage, lignite mining and injection well disposal. We also have a very active ground water aquifer program. <br />[Editors Note: The website states that the LOC’s mission is “to conserve oil, gas, and lignite resources; to regulate the exploration and production of oil, gas and other hydrocarbons and lignite; to control and allocate energy supplies and distribution; and to protect public safety and the State's environment from oilfield waste, including regulation of underground injection and disposal practices.”]<br />GHS: What’s your background?<br /><br />WELSH: Well, I’m a geologist by trade. I’ve been with the office in some capacity since 1965. I was appointed the 23rd commissioner by Governor Foster in 2002 and reappointed by Governor Blanco and then kept on by Governor Jindal. I’ll soon be starting my 8th year as Commissioner. I’ve had the privilege of being the first career civil servant to be appointed the Commissioner. <br /><br />GHS: What is the relationship or hierarchy between local and parish governments and the LOC? <br /><br />WELSH: They have their responsibilities. Local governments are, of course, free to pass ordinances except when it comes to oil and gas regulations. My opinion is that this governance falls under the authority of the LOC. The state statutes placed this responsibilities under my office in order to prevent Parishes from doing something 64 different ways. It’s been that way, it’s in the statutes. We always work with the local government, such as the recent regulations. We had representatives from Caddo and Bossier Parishes as members of the ad hoc committee which drafted our new ordinance rules. We had public hearings. We got a lot of comments and we came out with a good piece of legislation dealing with the situation in NW LA.<br /><br />GHS: What are you hoping to achieve with the ordinance dealing with Haynesville Zone E&P Operations in Urban Areas? (http://dnr.louisiana.gov/cons/notices/20090501-haynesville.pdf)<br /><br />WELSH: As in any rule, it is designed to protect the environment and public health and safety. It has many provisions in it dealing with drilling in urban areas. People need to remember that these are in addition to our state-wide rules under 29b. Our ordinance is tacked onto these existing regulations to be enforced within city limits in the 8 parishes affected by Haynesville Shale drilling.<br /><br />GHS: What was the thorniest issue that the committee has to hammer out in working out this ordinance?<br /><br />WELSH: We seem to be getting more attention to noise levels. The local authorities wanted to accept the same decibel levels as the levels used in Fort Worth for the drilling of the Barnett Shale. After we saw some studies, we didn’t see a reason to go that low; when we pass a regulation we like to have a reason for doing it. The E&P companies, on their own, hired a Shreveport lab, All-Tech, to test the noise levels coming off local drilling rigs. The eventual decibel levels approved are close to the Fort Worth levels and within the levels mandated by all OSHA safety rules for noise. Some might dispute exploration and production companies (E&Ps) going out and hiring their own firm, but the lab is certified by DEQ. The study was done this year, in Louisiana and in the Haynesville drilling zone. So this study hits the bull’s eye & was a very credible source for adopting the decibel range we did.<br /><br />GHS: Can our local authorities pass laws/ordinances regarding exploration or issues surrounding exploration?<br /><br />WELSH: One issue that the ordinance does not cover is road use. The closest we come to addressing road use is that we do mandate that the drilling companies certify, to the LOC, that they are in contact with local authorities regarding their level of road use. This approach allows the local government to handle it the way they so choose. After all, they are the best entity to handle this. Roads aren’t our cup of tea.<br /><br />GHS: I had heard that the District had been somewhat surprised by the upswing in activity in 2008. What measures did the district take to deal with the surge in drilling activity in the Shreveport District? How are these measures working? Has the district 'caught up' in this regard, in his opinion? <br /><br />GHS: What has been the LOC’s response to the need for increased manpower to handle the increased activity in NW Louisiana? <br /><br />WELSH: It’s been a real fight and I understand the Governor just came out with another hiring freeze. However, I think we are ok now. I think we are able to enforce the rules in the Haynesville. We have 12 inspectors currently in the Haynesville Shale area and we have a pool of 45 inspectors, state-wide, that do other things (i.e. lignite inspections), but we can draw on any of these guys if we have to. So we are absolutely able to enforce state laws in the field.<br /><br />GHS: Are you guys self funded or do you all take from state taxes?<br /><br />Welsh: We have a little bit of general fund dollars. We self generate more than 50% of our budget. We generate this through a host of permitting fees. Any activity we regulate comes with an associated fee (i.e. production fee per Mcf of gas). We get some money from the federal government that we have to match with state money. Examples of this include our underground injection program, which receives funding from the EPA, our lignite mining program, which is partially the Department of the Interior, our pipeline safety program, which is partially funded by the U.S. Office of Pipeline Safety. We have an overall budget of 17 million and we have roughly 190 employees. Most of our employees are either geologist or petroleum engineers so we have a high tech office overall.<br /><br />Well Permitting<br /><br />GHS: Let’s do an ABC rundown of the permitting process?<br /><br />WELSH: The permitting process if pretty straight forward, spelled out by approved legislation. Basically, the E&Ps have to provide a certified location plat. They have to provide unitization information if there’s a unit involved. They have to document that the units are spaced correctly according to the field order. <br /><br />The company is going to show us how they plan on constructing the well. They must identify the zone they are drilling down to. They have to show that they are fully in compliance with all the rules and regulations on the front end. We have a standard inspection form with a fairly long list of things that our inspectors check off (blow-out preventers, spill containment). <br /><br />This information is then provided to the district office in Shreveport. The Shreveport office does a basic completeness determination making sure everything is addressed and then they forward it to the Baton Rouge office where the permit is actually issued from; we have streamlined this over the years.<br /><br />GHS: So how long does it take to get a permit for a well?<br /> <br />Welsh: It is several months assuming no problems pop up; a couple of months probably.<br /><br />GHS: Have you seen a slow down in the number of wells being permitted since the slowdown?<br /><br />WELSH: I’ll tell you, we are not seeing any slowdown in the Haynesville. It’s amazing that 98 of the 116 rigs working in the state, and off shore, are in the Haynesville Shale. Statistically, South Louisiana has traditionally been the oil & gas exploration leader. Not so anymore.<br /><br />Reporting Well Results<br /><br />GHS: One of the issues that keep bubbling to the surface on GHS is the prospect of stiffening some of the penalties on operators for noncompliance with the reporting requirements. What is your stance on this issue? <br /><br />WELSH: I think this is really a misunderstood thing. Reporting requirements are being met by the companies. Basically, the company is required to report within 20 days after the well starts producing. Producing means that the well is online and plugged into the pipeline; they are marketing the gas. Right now there are 130 producing wells in the Haynesville, but there are 495 active wells so a lot of them aren’t completed by the definition we use (i.e. selling gas to a pipeline). <br /><br />Every number you see on SONRIS, production numbers, the company has filed a certified production report with our office. We don’t report company PR; we go by official filings to the LOC. It’s important that people have a place to go to see this production info. By filing this form, the company is signing under penalty of law that their production is x. This filing then becomes part of the well file. It would not be wise for a company to falsify a production report.<br /><br />GHS: What are the penalties for a falsified production report?<br /><br />WELSH: Generally, we have authority to fine up to $5,000 per day. We don’t have a strict fine schedule we follow. With oil and gas, it’s done on a case by case basis depending on the facts of the situation. We look at whether it was a foul up or done purposively. Also, we’ll take into account the compliance history of the company.<br /><br />GHS: Do you think the process is efficient enough and the penalties sizable enough to prevent abuse of the reporting system?<br /><br />Welsh: Yeah, the fines aren’t the biggest stick we have. Our main deterrent is really the ability to shut the well in. To a company, this is the jugular vein; they do not want to get shut in. In this scenario we cancel their authority to produce. This means that it is illegal for them to produce it. Illegal for a pipeline’s to take their gas from such a well, or a transporter to haul any oil from the lease, it is a very effective big stick. <br /><br />GHS: How do you track the abusers down?<br /><br />WELSH: We have a tracking system in place via our production audit section. When the company starts producing they’ll file a production report. Pipelines also have to report what they are receiving and transmitting. All these numbers have to jive. If not, then there is something wrong. We have auditors checking this every day. We are tied in to the Department of Revenue; we have a pretty good cross referencing system. I don’t think people are being “cheated,” so to speak. The state gets severance tax, so the administration and legislature want to be sure all the funds due them are getting into the state treasury.<br /><br />GHS: When is the last time you shut a well in and what were the circumstances surrounding it? <br /><br />WELSH: It’s been awhile, I believe it dealt with injection wells. Regarding to issues, we issue them all the time, but I don’t recall anything really serious. As of late, most penalties have been fines in the neighborhood of $1,000.<br /><br />GHS: So, if a landowner has an issue with a driller, perhaps they feel they aren’t getting adequate royalties, is there a way in which the landowner can file a grievance?<br /><br />WELSH: Not with the LOC. This is solved in Louisiana courts which interpret Louisiana’s mineral code. Mistakenly, some who think they got the short-end of the stick on their lease give us flack. However, the LOC is not involved in this. This is for a judge in a court of law to decide.<br /><br />SONRIS Generally<br /><br />GHS: Any plans to bring some SONRIS classes to NW Louisiana?<br /><br />WELSH: Yes, we want to do that. We will be participating in the Gulf Coat Expo in October of this year. We will have a booth there. Our people will be there to show what can be done on SONRIS. We have had these classes all around the state and even Texas. In fact, we have one coming up in New Orleans in September. The classes are popular. It’s important to us that we have these so people know how to do reports correctly. For our system to work, companies have to cooperate.<br /><br />GHS: Any plans to create some custom reporting on SONRIS so we can track Haynesville Shale monthly production (both total and by parish) or the possibility of giving the SONRIS user the possibility of differentiating between Haynesville Shale and non-Haynesville Shale production? Any plans such as this in the works?<br /><br />WELSH: Staff has compiled such information in the past on request but it will take additional programming by our IT Division for this service to be available via SONRIS.<br /><br />Groundwater Protection<br /><br />GHS: Have you ever seen water contamination issues in your tenure as a civil employee?<br /><br />Welsh: Yes, in the early days, there was some contamination. Early on, before the underground injection control program matured and we didn’t have our current rules, it was pretty lax. The underground injection program had to grow and become more stringent. Once the EPA started enforcing laws that the state(s) had to certify that it had a sound set of laws and rules and the people to enforce them, it improved. As far a Louisiana goes during that early time, I believe we were ahead of most states. We’ve had a general prohibition against aquifer contamination since the 20’s. We are very competent in what we do in protecting underground water supplies.<br /><br />GHS: What about hydraulic fracturing; do you have any concerns that fracturing may contaminate our ground water supply?<br /><br />Welsh: Hydro-Fracking is fairly new. Fracking is not considered an underground injection; it’s exempted under current law. Regarding contamination by fracking, in my opinion, we have never witness any problems causing any aquifer contamination. We have done exhaustive research of our records and haven’t found anything. Most other states will tell you the same thing. A deeper issue is how flow-back water will be classified under the Underground Injection Control program. Frack fluid is 99.5% water and sand. It does have chemicals that could be toxic in a concentrated form; this is what happened to the cows. But some of these chemical we use in every day living. An example of this is chlorine; we use chlorine everyday in our drinking water and our pools. Overall, frack fluid is pretty inert, but it does have some bad stuff in it. Just in diluted amounts. It’s not the horrible thing that some people believe it is. <br /><br />GHS: I’m sure you are keeping up with the idea of the EPA playing a role in the regulation of Hydraulic Fracturing; I shouldn’t assume, but I think it’s safe to say that you probably think the DOC has it covered? <br /><br />Welsh: Yes, I’d rather the EPA stay in their regional Dallas office and leave it to our state to regulate.<br /><br />GHS: What steps have been, or will be taken to ensure our water system is not consumed beyond fair use?<br /><br />Welsh: We have some ideas to prevent overuse of our aquifers. We have some new proposed rules that will allow for the recycling of flow-back water & salt water. The rules would allow us to clean it up for reuse in frack water. To me this is a good move to minimize the use of underground aquifers for fracking.<br /><br />We saw on the front end that the aquifer that serves Desoto Parish and South Caddo, the Wilcox is not suitable for withdrawing the millions of gallons needed for fracking. It would have been a matter of time before the aquifer would have really been damaged. From day one, we encouraged companies to get out of that aquifer and utilize other sources of water for fracking that being the Red River, Toledo Bend, and the Red River Alluvial aquifer. This high yield aquifer runs right along the Red River; the water isn’t suitable for drinking due to its mineral content, but it’s perfect for fracking and it’s an unlimited supply. It makes no sense to me not to use it. <br /><br />We’ve identified, at the lignite mines, in Red River and Desoto Parishes, sources of water. In order to reach the lignite, the mines have to dewater the Red River Alluvial aquifer. The lignite is found just below the aquifer. Well, the mines send millions of gallons of water per day up the Red River. It makes no sense to me why we aren’t using this for fracking; picking up on these types of things make up good conservation practices.<br /><br />GHS: Do you, as the current Commissioner, have the ability to issue an emergency injunction should it be found that our water sources are in jeopardy? <br /><br />Welsh: Yes we do. We can issue an order that would restrict withdrawal. An order would be given if an aquifer is unable to show its sustainability which essentially means an inability to produce water at its previous normal levels. So yes, I do have the authority to issue such an order. We recognize priorities for water use and of course, the number one purpose is for our drinking supply. We are finding ways with the use of science and common sense to manage our water supply. It takes awhile to bring industry in line with our goals, but as long as they want to work with us, we’ll work with them. We feel very strongly than industry and nature can co-exist but it does have to be managed very wisely.<br /><br />GHS: What is protocol for handling a reported environmental concern?<br /><br />WELSH: Any time there is a complaint or issue, such as a blowout, we have a very formal process that we go through that informs all first responders. It’s guided by the State Police who have the ability to quickly to notify the DOC and the DEQ. The State Police send their HAZMAT team out to the site. The local Sherriff’s office is notified as quickly as everyone else. I know that Sherriff Prator was concerned about his notification. The exploration companies know the process and it’s carried out state wide. <br /><br />GHS: Let’s use a hypothetical situation, or let’s look at the recent spill in Caddo Parish where 20 cows dropped dead – what role does the LOC play once a possible issue has been reported?<br /><br />Welsh: We coordinated this effort with the DEQ. They played a big role in the investigation of this spillage. Although all our people [state department] determined that there was no E&P waste involved in this episode, what we did see was some spilled chemicals that had not been mixed into frack fluid. The DEQ took the lead by sampling all the chemicals, the drill site, the water and soil in the pasture.<br /><br />GHS: So there is a hotline one can call to report hazardous waste or activity?<br /><br />Welsh: Absolutely. We have a hotline that citizens can use to report. It’s in bold red letters on our website. You can’t miss it. Someone is there 24-7, it’ll be answered. We got the procedure to get the report to the proper authorities. <br /><br />Unit Size<br /><br />GHS: What is the LOC’s stance on units larger than 640 acres? Do you believe the standard has been set at 640 acres? <br /><br />WELSH: Generally, we try to go with 640, that’s what the equities have determined. However, as production declines, which it will do, it is important to have the flexibility for companies to down-hole combine production. As these gas sands get marginal economically, it extends the life of the operations if companies can combine, or co-mingle, production from all the zones (i.e. the Haynesville and the Cotton Valley). This is the most economical way of getting any remaining gas. Otherwise, it’s going to be a nightmare trying to figure out what’s coming out of each zone.<br /><br />GHS: What determines the reason(s) for granting larger units?<br /><br />WELSH: The sections aren’t exactly 640, but close, and then you have some are that come up against the state line. We don’t like to leave gaps between units. We’d rather add that on then leave a landowner out of a unit; otherwise some landowners would never see production. Also, you’ll notice with Toledo Bend, we have some larger units that extend all the way to the Texas line. No company wants to put an off-shore rig in Toledo Bend. You just have to come to the hearing to understand why the units are given the size they are. Reasons will vary as to why the unit is size assigned. <br /><br />GHS: But you don’t see a larger unit as becoming the standard?<br /><br />Welsh: No, larger units will only be allowed for very specific reasons. Such as urban areas. As you get into urban areas, drilling locations are scarce and you just can’t drill anywhere because of existing ordinances. So, the companies have to carefully plan the configuration of the unit(s) and if they can’t get in there, the company won’t be able to drill and landowners won’t get a well(s) on their property. <br /><br />You can read more at the LOC’s website http://dnr.louisiana.gov/cons/conserv.ssi.<br /><br /><br />###Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4352785374251494361.post-86939476518525996292008-08-28T12:00:00.000-04:002008-08-28T12:01:26.666-04:00Point Well Taken by this Haynesville Shaler<embed src="http://static.ning.com/pickensplan/widgets/video/flvplayer/flvplayer.swf?v=3.5.5.3%3A7317" FlashVars="config_url=http%3A%2F%2Fpush.pickensplan.com%2Fvideo%2Fvideo%2FshowPlayerConfig%3Fid%3D2187034%253AVideo%253A834021%26x%3DpjXT1Zc8tKr1K7JPT7vh17j2ogsQqVLC&video_smoothing=on&autoplay=off" width="448" height="364" scale="noscale" wmode="transparent" allowScriptAccess="always" allowFullScreen="true" type="application/x-shockwave-flash" pluginspage="http://www.macromedia.com/go/getflashplayer"> </embed> <br /><small><a href="http://push.pickensplan.com/video/video">Find more videos like this on <em>PickensPlan</em></a></small><br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4352785374251494361.post-41379210582651995982008-08-22T16:09:00.005-04:002008-08-22T16:20:40.797-04:00Forced Pooling - A great explanationFor those of you curious as to what "forced pooling" is, I had a poster Dion War from the site post the following (it's as good an explanation as I have ever heard).<br /><br /><br /><blockquote>As an unleased mineral owner, you would be treated much like a working interest partner, which would be responsible for their share of the well cost, proportionate to what you own in the unit (if you own 32 acres in a 640-acre unit, you would responsible for 5% of the well cost). You can be forced pooled, however, in LA, you cannot be forced to participate (come up with your share in advance), nor can you be penalized for not participating (in that you are not charged more than your share of the well cost for not participating). Generally what this means is that if XYZ Oil Co. drills their well in your unit without your lease, they carry your share of the cost as well as theirs.<br /><br />However, they can net your share of the royalty against your share of the well cost. What this means is until the well pays out (breaks even, or produces more revenue than the well expenses), you won't see a royalty check. After payout, however, you receive your full proportionate share of the revenues. This can stop however, if the operator conducts further operations (reworks, frac jobs,etc.) on the well, to the extent that your share of revenues will be "netted out" against those costs, until those are paid.<br /><br />What does this mean?<br /><br />If the well never pays out, you get nothing.<br />If the well barely pays out, you would have been better signing a lease.<br />If the well is wildly successful, you get lots of revenue, and are admired greatly by your friends (and reviled by others in your unit that 'settled for a lease').<br /><br />Many people choose to forego all of that and lease. You get a bonus, just for signing the deal. You get a certain percentage of production, period, irrespective of how much the well costs are. And you support the operator by granting leasehold (working interest) to the lessee. The only time that it doesn't 'work out' for you as much as the holdout is if the well goes gangbusters, and you 'settled' for a lease that still will pay you a nice chunk anyway, without the risk.<br /><br />Working interest and net revenue interest are important in that XYZ Oil Co. is going to compare prospects based upon "what's in it for them". As I have told countless landowners, "XYZ Oil Co. is not in the business of drilling and operating a well for YOU." These guys are in it for the money, and the real money is not made my owning and operating wells for the landowner's benefit. And, generally the oil company provides a benefit to you by exploring for and producing minerals that you do not have the time, money or expertise to bring to the market yourself. So if you own 200 acres in a 640-acre unit, and don't lease, no one is going to want to drill a well. There is just not enough financial incentive for them to do so. If you own one acre, two acres, maybe even ten acres (as long as there are not too many like minded owners in your unit), they probably will take the risk, and drill it anyway.<br /><br />As to your question as to 'how will they know to pay you?' I could be flip and say 'How did they know to lease you?' but that's a little too flip for an honest question. XYZ Oil Co. has abstractors (or landmen) run preliminary title to find out who owns what, how much, and where. They lease you based upon that research. Some companies wait to do the full research later (which is why many people receive a draft, this gives XYZ time to prove up the title). At some time between the decision to drill a well and the well coming into production, XYZ Oil Co. makes the decision to commission abstracts to determine full title on the tracts in the unit. This research is handed off to attorneys, who then give a title opinion as to who owns what interest, and who to pay. XYZ then sends out 'division orders' to the identified owners, telling them they own Tract X in the unit, their interest, and a royalty fraction. This fraction times total net production (less taxes and costs applicable to you) from the unit</blockquote><br /><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgfynuZx4QoD4KjK7yGjZ1vDdkqxiS6tgiHj3Iw2BxcUrMA4ij73NZO7PNYTYbYynH4TZ4XG8Ue73DvcqPBqpRxMeMVETru3UvOhyphenhyphenG2mTSZlBRfGLh4SoH8qPhc_nZY-vdKVkqzujx70wL9/s1600-h/2006MatchroomSportsWorldPoolLeagueFinalDayFeijen.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgfynuZx4QoD4KjK7yGjZ1vDdkqxiS6tgiHj3Iw2BxcUrMA4ij73NZO7PNYTYbYynH4TZ4XG8Ue73DvcqPBqpRxMeMVETru3UvOhyphenhyphenG2mTSZlBRfGLh4SoH8qPhc_nZY-vdKVkqzujx70wL9/s320/2006MatchroomSportsWorldPoolLeagueFinalDayFeijen.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5237438479732065314" />Not quite what I had in mind</a><br /><br /><strong>Dion continues...</strong><br /><br /><blockquote>In LA, you can be force pooled by DNR-Office of Conservation, by Commissioner's order. You cannot be forced to participate, nor can you be "force leased" (this is called integration, and happens in Arkansas).<br /><br />You also cannot be penalized in multiples of payout (as long as you are not "in the oil business") for being non-consent or unleased, as long as you don't execute a binding contract (like a Joint Operating Agreement), or as long as you don't take and hold the leases yourself (either of which would constitute you "going into the oil business").<br /><br />This is the way this usually works. XYZ Oil Co., identifying you as unleased mineral interest, sends you a division order stating you have 0.xxxxxxxx unleased interest in the unit, asks for correct address and SSN/TIN info, etc.<br />If all the info looks correct, you don't have to really do much. Another letter follows with a well statement, outlining the well costs, your interest, and your share of the costs. You can generally elect to pay them, or have them held out your share of the production.<br /><br />Each month or quarter or so, you will receive a followup statement (although you should be able to obtain one at anytime as a courtesy) updating the well costs figures and revenue.<br /><br />Hopefully, you reach payout. Then the statements will shows costs paid in full, and your full share (as UMI or unleased mineral interest) credited from the net proceeds of production.<br /><br />This is not the same scheme where you choose<br /><br />(A) "Leased" at $500 and 1/5.<br />(B) "Leased at $300 and 1/4<br />(C) Non-consent. (200% penalty)<br /><br />Please make your choice within thirty days.<br /><br />I am working on a DOI sheet right now. There is no column for "non-consent".</blockquote><br /><br />Hope this helps.Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-4352785374251494361.post-6370008551603642312008-08-07T16:10:00.003-04:002008-08-07T16:18:16.066-04:00Haynesville Shale & T Boone PickensT Boone Pickens Plan – Will it work?<br />Last night I saw a commercial for the Pickens Plan (<a href="http://www.pickensplan.com/">www.pickensplan.com</a>). If you have not checked his plan out, make sure you do. The last time we saw a Texan putting on a personal campaign of such magnitude was Ross Perot. Pickens plans on spending $58 million promoting the use of wind power and increased use of natural gas. Perot spent around $64 million dollars on his 1992 campaign.<br /><br /><p style="text-align: left;"><img src="http://api.ning.com/files/sWz0FK8e17z*YOlHLrKpSVSiXffqLag0YUCILMcHLi47UN9mmtw3pyjeVoZUoaskgVE*vz9-TJumX1oyBJRGe98uXJZGFrRb/APerot.jpg" alt="" width="180" height="143" /></p>Remember the last Texan to mount such a PR capaign?<br /><br />Some have questioned his motives. www.pegasusnews.com/news/2008/aug/07/t-boone-pickens-energy-plan-may-be-self-serving-sc. I will hold off. If his plan does free us from foriegn oil dependence, he deserves all the riches that come his way. That is how these things work...you come up with a good idea, you should be rewarded for your brillance. If it fails, well, that is a different story.<br /><br />Well, Pickens piqued my curiosity so I went to website to check it out. His plan is intriguing. I know his plan would mean good things for the natural gas industry, but can it work? Well, after my thorough research, I have determined that I don't know. Perhaps some of you out there have the answers. For me, the better question, "is it worth a try?" It certainly sounds better than the ethanol route the government has so heavily invested in. Any thoughts?Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4352785374251494361.post-3019842813063431032008-08-07T13:17:00.002-04:002008-08-07T16:49:42.146-04:00Haynesville Shale Snake Oil SalesmanThe theme of this week is Snake-Oil Salesman and making enemies.<br /><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3yPto62bDffUV0MMiVGBc4khOXjtOX9qxVqQQn_cZcaqjwbnbo7wwT9js9PGitHCPqlKHeTvkOuO2SzDo2PJA7h0p2208iYoeKhXDc2CGW-XtTky_tzkG6rM5ogrSkb5VxhV9mXTuAEkf/s1600-h/snakeoil_1-794216.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3yPto62bDffUV0MMiVGBc4khOXjtOX9qxVqQQn_cZcaqjwbnbo7wwT9js9PGitHCPqlKHeTvkOuO2SzDo2PJA7h0p2208iYoeKhXDc2CGW-XtTky_tzkG6rM5ogrSkb5VxhV9mXTuAEkf/s320/snakeoil_1-794216.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5231880684838848626" /></a><br /><br />There seems to be a consensus among those with whom I speak to that there are a lot of people asking you to pay them millions of dollars to not do much. I was at one of these meeting in Sabine parish near Toledo Bend last Wednesday. The gentleman got up and essentially said, “My uncle is an Oil and Gas Attorney and he’s got a mean lease” now give me millions. The guy was unprepared as was evident when the older, but well versed oil & gas crowd started firing questions at him that he wasn’t prepared to answer. After leaving the meeting with my brother-in-law, we discussed how it seemed that none of the middle men that we had heard to date were informative let alone worth the millions they want us to put in their lap. My question. Why use them?<br /><br />Also interesting was an “exchange” I had while visiting the great town of Natchitoches this week. I was in local store and a woman came in and asked, “Whose GoHaynesvilleShale.com sign is that on the vehicle outside?” Of course, I proudly said, “mine, why?” The reply was downright cold as she walked past me without a response and certainly without the southern hospitality I have come to expect from this great state. The store clerk picking up on this said, “I don’t think she likes your sign….” I replied, “No, I don’t think she likes landowners communicating.” My hunch was confirmed when the clerk told me she did work for a seismic exploration company doing work in Natchitoches. Does this confirm a thought that I have had that the Oil & Gas Company’s (and their subsidiaries) do not like landowner’s communicating with each other?Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4352785374251494361.post-17869389197995812072008-07-02T21:08:00.002-04:002008-07-02T21:14:01.441-04:00Haynesville Shale conference call held by ChesapeakeChesapeake Conference Call July 2, 2008 9:00amChairman/CEO Aubrey McClendon (Summarized)•<br /><br />Win-win partnerships between Chesapeake and PXP - Great news for Chesapeake shareholders• Haynesville 4th largest gas field in the world• Chesapeake has invested $2.5B in Haynesville• Play just underway, data suggest 250TCS• Barnett had 50TCS, which is only 20% of Haynesville –• Our country should realize how blessed we are as a nation, especially during this time of record high gas prices – can be very helpful in converting to hybrids• We are so confident because 3.5 M acres defined as core area• These wells are in a class of their own – calling them “triple X monsters” – likely to get better over time – 8th well, 2 days ago brought on the best so far: 4.5-8.5 BCSE- claimed that the reason for withholding info was to prevent other companies from receiving a blueprint to their technical practices- 4 corners work from all the companies that have outlined the shale from their drilling.- Haynesville Shale will move quickly.- PXP retains the ability to sell their interest in the HS- Do not forsee selling hshale--wanted to buy more- Chesapeake retains first right of refusal- Ches - 4,000 landmen in the HShale - 1,000 in Barnett, scouring the field.- Dollars per acre was set by Ches.....$30,000 per acre....paid that price because Ches is going to agressively work HShale to increase the rate of return, deploying PXP capital smartly was the goal.- Mix of Shale and Sands? Looking for 100% shale...looking for great black shale with the right porosity and organic composition. When you hear the flow rates their will be skepticism but it goes back to the high rates of pressure. The consistency and simplicity is the reason for the dynamic production.- Flow rates - what are the infrastructure restraints? On top of the game large structure that handles other plays so will be moving fast. We are east so we are closer to the markets...so better pricing. Do the math and HShale could do [better? He kinda trailed off here] because we are closer to the eastern markets.- Great opportunity for the US to retrofit gas stations and use natural gas instead of foriegn oil.- Potentially liberating event.- Here in the HShale we may have 10 years of production.- 60 rigs operating by 2010- Play could not be in a better spot.- Regulatory structure that is favorable- Great pipeline structure...past many bottlenecks will help this happen much more quickly. Do have to extend supply lines...this helps drive down costs.- Working through Twin Cities in Shreveport..has put togther an impressive organization..has a network set up..tough sledding to go door to door to buy leases.• PXP partner – deep LA roots helpful as they develop Haynesville in the decades to come – if you snooze, you lose and Ches is not snoozing - Haynesville will develop similarly to Barnett but also differently – it will be easier than Barnett in some waysUnknownnoreply@blogger.com0tag:blogger.com,1999:blog-4352785374251494361.post-80104624017694997582008-06-29T22:31:00.003-04:002008-06-29T22:35:43.044-04:00Go Haynesville Shale archives<strong>Ending an outdated lease</strong><br /><br />Posted by <a href="http://www.gohaynesvilleshale.com/xn/detail/u_1dz9o95z8z2n">Vidal</a> on May 29, 2008 at 10:49pm<br /><br />My land has been leased since 1978, and I'm assuming that it's paying 1978 market prices. Is there any way to update this lease to a reasonable market price or end it entirely? Thanks for the help.<br /><br />Replies to This Discussion<br /><a name="2117179:Comment:337"></a><br />Reply by <a href="http://www.gohaynesvilleshale.com/forum/topic/listForContributor?user=1dz9o95z8z2n">Vidal</a> on May 30, 2008 at 5:55pm<br /><br />I really appreciate the help. I'll have to look into finding a lawyer and answering some of these questions. Thanks again.<br /><a name="2117179:Comment:343"></a><br />Reply by <a href="http://www.gohaynesvilleshale.com/forum/topic/listForContributor?user=2ulybnjcxko7u">Greyshades</a> on May 30, 2008 at 8:02pm<br /><br />The older the lease, the fewer the bells and whistles, but look at the terms regarding depths and what gets held by production. Also, were there long periods when you or your family didn't receive any royalty payments? A lessee can't just sit on your land -- they have to drill, develop, produce minerals and pay royalties to keep the lease alive.<br /><a name="2117179:Comment:351"></a><br />Reply by <a href="http://www.gohaynesvilleshale.com/forum/topic/listForContributor?user=1wcvmb6oxb5wt">BJ</a> on May 30, 2008 at 10:58pm<br /><br />We have a situation similar to the OP. I just became an heir to acreage that has been leased since the 1960's. I just did a transfer of ownership and in the interim discovered that a new company is now handling the royalty payments. This is at least the 4th company this acreage has been leased to. I recall one company going bankrupt in the 1980's (I think).How do I obtain a copy of the lease? Does the company simply provide it upon request?<br /><a name="2117179:Comment:361"></a><br />Reply by <a href="http://www.gohaynesvilleshale.com/forum/topic/listForContributor?user=2ulybnjcxko7u">Greyshades</a> on May 31, 2008 at 9:11am<br /><br />You can go to the clerk of court for the parish where your land is located. The lease should be recorded there, along with any transfers of the lease from your original lessee to later operators. The personnel in the clerk's office can probably help you find the lease, if you give them the name of the lessor. However, the clerk's employees are generally not permitted to do fullblown index searches, so you will probably have to figure it out yourself or hire an<br /><br /><strong>webster parish<br /></strong><br />Posted by <a href="http://www.gohaynesvilleshale.com/xn/detail/u_2gfe3fgi0vcao">stroud</a> on June 8, 2008 at 2:01pm<br />any shale interest in the minden field in webster parish,,,16-19-08??????<br /><br />Replies to This Discussion<br /><br /><a name="2117179:Comment:763"></a>Reply by <a href="http://www.gohaynesvilleshale.com/forum/topic/listForContributor?user=3lf8v07360g5t">Mom</a> on June 8, 2008 at 2:17pm<br /><br />I would like to know this as well... I've heard so many rumors about minden, doyline, webster parish. Just don't know what to believe any more. I've heard a man in Minden had to deposit a lease check for $800,000.00.I've also heard that Chesapeake was looking around. I haven't seen it myself, though.Does anyone else know something?<br /><a name="2117179:Comment:769"></a><br />Reply by <a href="http://www.gohaynesvilleshale.com/forum/topic/listForContributor?user=3r5dbr5yum3o4">Bayou Lassie</a> on June 8, 2008 at 2:31pm<br /><br />I know several that live in Minden or just to the east, north ofI-20, near 531 that signed a lease in the last week or so.Also have friend that has land north of Minden, but southof Sarepta area, that got $4000. per acre, for over 700 acres.Have seen the trucks that do the testing from the Old ArcadiaRoad north to the Sugarcreek Road area, then over to theClaiborne Parish line.So much of that area to the east of 531, is already leased asthat is in the "Minden Field" area.<br /><br /><strong>DOs and DONTs on signing leases<br /></strong><br />Posted by <a href="http://www.gohaynesvilleshale.com/xn/detail/u_3myy9cb648bfm">Coonman</a> on May 29, 2008 at 11:31am<br />Please comment on the dos and donts of signing....ei things to include or not to include<br /><br />Replies to This Discussion<br /><br />Reply by <a href="http://www.gohaynesvilleshale.com/forum/topic/listForContributor?user=2zl6avri4oa1v">Kassi</a> on June 7, 2008 at 9:11am<br /><br />Points To Consider Prior To Signing Mineral Lease Contracts1. The mineral rights are being leased in 640 acre “pools”.a. Once ¾ (75%) of the land owners sign leases the remaining ¼ (25%) of land owners are “Unsigned lease holders” with no lease agreement.b. The Un-leased mineral owner within the pooled unit is not entitled to receive any share of production or proceeds until the unit operator recovers the cost of drilling, completing, equipping and operating the well.2. If a well is planned to be drilled less than 3,000 feet deep, Louisiana law allows it to be located as close as 330 feet from any property line and 900 feet from other wells in the “pool”. That means there could be wells every 900 feet in some areas.3. Louisiana law allows permanent oil tanks to be as close as 500 feet from inhabited dwellings (homes) and 1,000 feet from churches and schools. (They must be surrounded by a fire wall.)4. There is great latitude for “mineral owners” (those who lease our minerals) to access the minerals on/under your property.5. A mineral lease allows for seismic testing automatically unless it is specifically mentioned as unacceptable in the lease.6. Louisiana law only requires a “reasonable prudent operator,” which means if the drilling company does not cause “excessive damages” you may not be entitled to recovery of cost for repairs, etc.a. Unless the lease specifies limitations to damages to your property and provides specifics as to restoration of property, you could be left with damaged property and/or homes.7. The drilling companies can use your surface water for their drilling needs if you do not have something in your contract that requires them to use alternate forms of lubricant for their drilling activities or to “fracture the well”. Drilling companies may also dig large water storage ponds on your site. (About 4.5 million gallons of water is used in the drilling process) Once the well is “fractured” to release the gas, the water and chemicals are “back flowed” and the pollution filled water must be recycled on site or trucked away for disposal. (Louisiana law allows the waste to be disposed of on site)8. Noise from oil and gas production can be a big issue . The bureau of land management published a study that measured noise levels from a drilling well at 83dBA at 50 feet from the well. Many states and municipalities have regulations requiring noise levels be reduced to 35 to 45 dBA at night. Fort Worth Texas requires that the noise be no more than 5dBA higher than ambient noise during the day and 3dBA higher than ambient noise at night.d. There are things companies can do to reduce noise levels:i. Use of pneumatic pumping units or progressive cavity pumps.ii. Limiting hours the trucks can run on your property; for example, 7:00AM to 9:00PMiii. Sound barriers made out of steel (NOT Styrofoam)iv. Mufflers on some engines or replacing diesel engines with electric motors.v. Housing compressors and engines in acoustically insulated structures.9. Louisiana law only dictates that royalties must be no less than 1/8 ( 1/5 on school land). Many people feel a reasonable royalty rate is typically considered to be ¼ or 25%.10. Louisiana law only dictates that royalties be paid in a “reasonable time”.11. Lease amounts vary and there is no minimum amount under the law. People in Stonewall have been signing leases for as little as $100.00 per acre to as much as $7,500.00 per acre. (One neighborhood in Shreveport recently signed for $10,500.00 per acre and 25% royalty12. Things to consider before signing when negotiating a contract for mineral lease:Limiting the number of wells placed on your property.Specifying an increased distance from your home for drilling activities and placement of tanks.A clause that allows you to stipulate where access roads may be built on your property and in what condition those roads need to be maintained.If you have children or domestic animals, you may want to consider requiring fencing along the access road on your property and around any drilling sites to protect your family and pets from potential harm.Requiring prompt payment for repair of any damages caused to your home or property due to access, testing or drilling activity.Requiring your property be returned to its prior condition or better when drilling or other activities are complete.Be sure you take pictures of your property prior to allowing them on your property so you can prove the original condition.Require safe disposal of waste from drilling or even removal of waste from your property including “back-flow water”Require adequate drainage management on your property.It may be wise to have clauses regarding noise abatement put into your contracts as most drilling companies will not go to the expense of providing noise abatement technology unless it is in the lease contract or is mandated by law (which it is not in Louisiana that I could find).Discuss your royalty rate prior to signing.Consider requiring royalty payments to begin within 90 to 120 days of commencement of actual production.You may also want to consider asking for your royalty to be based on gross not net production income.m.It may be wise to have a clause requiring your lease amount to increase if others in the 640 acre pool receive a higher lease price within a set time frame.SPEND THE MONEY FOR A GOOD LAWYER TO REVIEW THE CONTRACT PRIOR TO SIGNING (Some lawyers are handling cases for 3-5% of the signing bonus. I think 3% is reasonable especially if the lawyer does the negotiating for you and saves you the hassle)Some final “food for thought”:Owners of smaller tracts of land (15 or less acres) may be wise to collectively bargain for fair leases and reasonable royalties as well as protection to our environment.If you sign a wise deal with environmental protections and your neighbor does not will his or her lack of knowledge in signing impact your quality of life? Remember there is power in numbers. One land owner with 1-15 acres out of a 640 acre pool is minimal. 30 land owners with 1-15 acres have more significant bargaining power. Remember the lease you sign could impact your ability to sell your home someday. If you sign a bad deal, the next person may not be so interested in purchasing your property with the bad mineral lease deal attached. Be wise and discuss these issues as a community before signing leases, you will have to live with the terms of the lease for a VERY long time.I hope this helps.<br /><a name="2117179:Comment:685"></a><br />Reply by <a href="http://www.gohaynesvilleshale.com/forum/topic/listForContributor?user=2c65bpch0bait">bigball</a> on June 7, 2008 at 11:03am<br /><br />Kassi, thanks for posting.I see where you say "The mineral rights are being leased in 640 acre “pools”.a. Once ¾ (75%) of the land owners sign leases the remaining ¼ (25%) of land owners are “Unsigned lease holders” with no lease agreement.b. The Un-leased mineral owner within the pooled unit is not entitled to receive any share of production or proceeds until the unit operator recovers the cost of drilling, completing, equipping and operating the well."If a owner doesnt sign a lease agreement, and has to wait for the for the O&G company to recover all there cost:1. Since you didnt agree on the royalty package (example:25%). Does this mean that you will get a lot more royalty (example: 100%), since you didnt sign a lease agreement?2. How long before the co. recovers all there cost? Im sure, it would be awhile, but do have a ball park figure?<br /><a name="2117179:Comment:707"></a><br />Reply by <a href="http://www.gohaynesvilleshale.com/forum/topic/listForContributor?user=2zl6avri4oa1v">Kassi</a> on June 7, 2008 at 1:45pm<br /><br />Hi,I am not a lawyer but it is my understanding that, Yes you are entitled to 100% of the royalty for your portion of the pool if you are an unsigned lease holder. The rub is that you have to wait until all expenses are paid (some say 2 months some say 2 years) Then you get yours after all expenses are paid each month. You also have to keep an eye on them since rumor has it the o&g companies tend to play the waiting game with unsigned lease holders. Then there is the possibility that they will hit a dry well in which case you get nothing. I still think it is a good idea to sign a lease, just make it a smart lease and collectively bargain.<br /><a name="2117179:Comment:709"></a><br />Reply by <a href="http://www.gohaynesvilleshale.com/forum/topic/listForContributor?user=2c65bpch0bait">bigball</a> on June 7, 2008 at 2:39pm<br /><br />wow, you could really hit payday if you wait. i see what you are saying though. i to would rather sign a lease, but 100% compared to 20% is an insane amount of money.thanks for the information.<br /><br /><strong></strong><strong>Force Pooling?<br /><br /></strong><strong></strong>Posted by <a href="http://www.gohaynesvilleshale.com/xn/detail/u_2ut2nz0m8t6dz">SoBoRes</a> on June 9, 2008 at 8:22am<br /><br />I have noticed reports in the Homer paper of activity in the area. I am looking for information as to if and how I may be affected by the Haynesville Shale specifically south of Lisbon. Currrently I am getting production from wells from 1991. When these wells where drilled we where advised there was "more gas, deeper" I would be grateful for any information.<br /><br />From recent discussions with my neighbors, I believe that I am one of the last left in my area that hasn't leased. My family and I live in South Bossier (rural) and own the rights to a little under 1.5 acres. We were contacted back in Dec-Jan timeframe from TwinCites and they tried convincing us that $300 per acre and a ten year lease was a great deal. No, I didn't accept.Being family with many in the O&G business (most working outside of the greater S/B area) they recommended that we wait to sign anything. We surely weren't worried about the possibility of losing a few hundred in bonuses. Now, looking at it and talking with folks around here I'm not sure if my mineral rights have already been force pooled. I know that the farm land area surrounding my neighborhood has already been leased, and I believe O&G would already have enough of a percentage (>50% of 640 acre plot) within this area to force the pooling and have the approval to do so. Does anyone know how I can find this out or is there a law requiring them to provide me notice of this?How easy would it be to find out who owns the majority of the leases in my area? And should/could I attempt to lease with the same company or play on another company? I contacted my HOA president yesterday looking for others in my area, that haven't signed yet. I am hoping that there are a few left and then maybe we will have a little more to stand on.I do know that Chesapeake has a rig fairly close (not to mention their new facility a few miles down the road) to our community and have been told that they have tapped the shale from there. I am not sure of the rig number or coordinates, but I see the lights and hear the trucks in the distance at night.To all posting here, I really appreciate your time and knowledge and willingness to share. We don't expect to get rich, but it sure would be nice to have a little more to invest for our future.BTW, I've posted this same info on TigerDroppings and haven't received a response yet.<br /><br />Replies to This Discussion<br /><br /><a name="2117179:Comment:885"></a>Reply by <a href="http://www.gohaynesvilleshale.com/forum/topic/listForContributor?user=1lnmmw1af3b8c">Haynesville</a> on June 9, 2008 at 11:42am<br /><br />THIS IS FROM AN EARLIER POST DEEPER IN A DISCUSSION....sometimes you have to dig deep in the discussions to find stuff. Hope this helps.At 6:41pm on June 7th, 2008, DrWAVeSport said…Subject Forced Pooling per Haynesville Shale PlayQuestion I have read so much per forced pooling. I Live in Shreveport, LA...Approx. 90% of recent legal notices (6/17 thru 7/8) per LA Office of Conservation where O&Gs file applications, contain clauses of "force pooling" & "integrating of all separatly owned tracts, mineral leases, and other property interests...with each tract sharing in unit production on a surface acreage basis of participation..." What exactly does this mean to (us) the landowners (who are attempting to acquire better land leasing deals)? Are they attempting to get out of lease bonus moneys? Nothing really sounds great about being force pooled. If you could give me (and my fellow Haynesville Shale stakeholders) the ups and downs per these forced pooling clauses if they are granted by the LA Commissioner of Conservation...Thanks so much for your help.--------------------------------------------------------------------------------Answer Dr; I'm not sure if you're talking about the pooling clause that is commonly found in leases, or about the pooling process that occurs when companies either can't locate or can't come to an agreement with some of the mineral owners in a tract they are attempting to lease.In the first example, don't worry about it. Most leases have pooling and unitization clauses that allow the lessee to "pool" or "unitize" several or more leases together in order to increase production from a field of oil or gas. If they were not allowed to do this, much production could remain in the ground. While there is the potential for abuse, in most cases you will never even get this clause activated as it is used mainly on fields that are nearing depletion.This type of pooling and unitization elects one well to inject a substance into it (perhaps salt water) in order to "push" the oil or gas out the other wells that have been pooled. Each mineral owner would share in the production from ALL the wells that were unitized. While your royalty fraction will be less in such a scenario (the newly created unit includes more land than your original lease did) you will still potentially receive more money in the long run as more of the oil or gas reserves are able to be recovered.If you are instead referring to the forced pooling process; this basically means that you will be "leased" at terms dictated by the State; based on what they think is "fair." A pooling order generally is good for only one year or less, meaning that if they don't drill within the time specified in the pooling order, the order will expire and you will be free to lease again. If you are pooled, and there is production from the well that is drilled, you will be paid based on your election of one of the several options afforded you in the pooling order. If you ignore the pooling order, a choice will be made for you by the terms of the pooling order.Some people prefer to be pooled, rather than lease to a company they can't reach an agreement with. They feel that the State will offer better terms than the company was offering.Hope this helps explain the pooling process.Frederick M. Scott CMMAnswered Question...I want to thank Mr. Scott for his timely and knowledgeable information (and for putting it into an understandable format). I appreciate him answering my questions that I sent to "AllExperts.com" for his reply, last week.Thank you again, "AllExperts.com" I have enjoyed all the Q&As that your experts put together that are helping the rest of us learn more about the O&G Industry.<br /><a name="2117179:Comment:910"></a><br />Reply by <a href="http://www.gohaynesvilleshale.com/forum/topic/listForContributor?user=2ut2nz0m8t6dz">SoBoRes</a> on June 9, 2008 at 1:06pm<br /><br />Haynesville,First, thanks for digging up that post. I had already read it and appreciate DrWAVeSport for sharing. Unfortunately, this still doesn't completely answer my questions. I guess my main question would be, can I as the owner of my mineral rights to my property, sign a lease with a different company if it is already pooled and I haven't been notified?Based on Mr. Scott's response, it appears that I should receive some type of order (to date I haven't seen anything). Does anyone know how I can find out if a request for pooling has been submitted? County clerk's office? And what would I need to find this information (e.g. address, coordinates, plot, section, etc)?<br /><br />Over the last week we have been receiving calls from quite a few numbers in the local area and they never leave messages. This was the same tactic used by TwinCites for<br />about a month until I spoke with them, then I couldn't get them to stop calling.<br />Thanks in advance.<br /><a name="2117179:Comment:987"></a><br />Reply by <a href="http://www.gohaynesvilleshale.com/forum/topic/listForContributor?user=8btlsdi1yqh6">nisie</a> on June 9, 2008 at 4:27pm<br /><br />The Sonris site reports hearing dates and fields<br />We're sorry, but this discussion has just been closed to further replies.<br /><br /><strong>Title Memorandum</strong><br />Posted by <a href="http://www.gohaynesvilleshale.com/xn/detail/u_2c0jjdai3ps4l">Melinda</a> on June 10, 2008 at 12:10pm<br />We are in negotiations with Chesapeake and they want to file a Title Memorandum instead of the actual Title. Is this a good idea? They do not want the other companies know the offers they make.<br /><br />Replies to This Discussion<br /><a name="2117179:Comment:1310"></a><br />Reply by <a href="http://www.gohaynesvilleshale.com/forum/topic/listForContributor?user=aqgak9unddew">Jaybird</a> on June 10, 2008 at 12:19pm<br /><br /><a href="http://en.allexperts.com/q/Oil-Gas-3147/">Http://en.allexperts.com/q/Oil-Gas-3147/</a>Shoot this comapny your question. Just go to the ask a quetion area on the site above.Very helpful site...just read all questions and answers there. It's helped me alot.<br /><br />Reply by <a href="http://www.gohaynesvilleshale.com/forum/topic/listForContributor?user=15elrpfaapaaf">CaddoVisitor</a> on June 10, 2008 at 12:44pm<br /><br />What you are talking about is a lease memorandum, not a title memorandum. It has no bearing on your interests. All that it entails is that your lease signed with the company (in this case CHK) will stay off record. This is often done for competitive reasons. It also helps you out so that in the case no drilling occurs and you get the chance, any future lessors will have no prior information on past royalty rates and bonus amounts you agreed to. The memo gets recorded at the courthouse and your lease is signed. You and CHK will each keep a copy and the lease will be binding.<br /><br /><strong>Lake Bistineau boundary</strong><br /><br />Posted by <a href="http://www.gohaynesvilleshale.com/xn/detail/u_h8mklc05f8q2">Scott Williams</a> on June 11, 2008 at 11:34am<br />According to the state of LA, the 'official' boundary of Lake Bistineau is at the 148'6" contour line...a long way from the water line. Still in court as I understand it. In the mean time, royalties are being withheld amounting to the percentage of our land lower than that contour. Anyone have more info on this?Thanks.<br /><br />Replies to This Discussion<br /><a name="2117179:Comment:1772"></a>Reply by <a href="http://www.gohaynesvilleshale.com/forum/topic/listForContributor?user=2ks84nofk8yt3">csc</a> on June 11, 2008 at 1:50pm<br /><br />no, but would be interested<br /><a href="http://www.gohaynesvilleshale.com/forum/topic/show?id=2117179%3ATopic%3A1303##"></a><br /><br />·<br />·Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4352785374251494361.post-3163294005955751882008-06-27T12:12:00.001-04:002008-06-27T12:13:51.968-04:00Watch Your Haynesville Shale Legal "help"I have been around the legal field a fews years now and based on what I am seeing, there are alot of "experts" out there earning millions for not doing much. Sure, they meet with you, fill out a few forms & and put your name where Ms. Yancy's name used to be, send the forms in, make a few phone calls, yada yada yada. IE spoke to some people who wanted 6% on our 300 acre plot..if we were to get $10,000 an acres that would be $180,000 for 6 weeks worth of work and because they had a few "contacts".My question. Where are all these folks going to be when you get served or need to serve those papers 3 years from now? ...oh, they will be there alright...for $400 an hour. Keep this in the back of your mind as you are negotiating..especially if you are using an attorney that does litigation as well...ask for a % discount to represent you if your contract ends up in court....because if you end up in court, it's likely because your contract wasn't constructed soundly...Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4352785374251494361.post-74769089520522494632008-06-25T13:57:00.001-04:002008-06-25T15:19:27.485-04:00Compilation of Haynesville ShaleHaynesvilleShale<br />June 25, 2008<br />To Date Review compilation of your input)<br />(verify verify verify)<br /><br />Bienville<br /><br />North of Castor: “my tract is just north of Castor and I've also signed the permit for a siesmic study, but no word about any leasing. I put a feeler into Chesapeake but haven't heard anything back from them”<br /><br />Southern Bienville Parish: “in southern Bienville parish. Better known as Roy Town. I have signed the permit for the siesmic 3D, but no word yet on leasing.”<br /><br />“I heard that west of Ringgold, companies are leasing, but it seems quiet east of there”<br /><br />Bossier<br /><br />Generally:<br /><br />“several companies have tried to buy my mineral rights from me outright, they offered HUGE $$$$, I know what is down there, I just tossed the offers in the trash.”<br /><br />“I just found out from a friend that works in the gas business that in between bossier city and benton around the magnolia chase subdivision the wells they just did, had more gas then anyone could have believed.”<br /><br />Richmond Cove: “not an HOA here, since the Stockwell residents don't have an HOA, we need to form a group together…. We have only been offered 5500 per acre. If any other Stockwell residents want to try to form a group so that we can get the majority to sign at a higher offer then please respond.” (go to the Bossier parish group)<br /><br />Brownlee: “I had posted last week that I lived in Lakewood and received the 5500/acre 25% from Twin Cities. I want to correct that the offer was for our RENT HOUSE located in Brownlee. I was told anything in township 19 was too far North and was not an area of interest AT THIS TIME.”<br /><br />Dogwood: “25% royalty, 3 year primary lease term with 2 year option. The option payment will be equivalent to the primary term. $8,750 per net mineral acre signing bonus (if 90% or more of Dogwood Homeowners lease to Twin Cities) OR $6,000 per net mineral acre signing bonus (if 80% or more of Dogwood Homeowners lease to Twin Cities) OR $5,500 net mineral acre signing bonus (if less than 80% of Dogwood Homeowners lease to Twin Cities)”<br /><br />Off of Benton Road, North of I-220 toward the River levy: “Residents along Rebouche Road have been known to sign leases for $5,000 per acre/.25%/3yr/2yr opt…. I was offered the same….. I am aware of signings off Airline Drive north of 220 for $11,000 per acre.”<br /><br />Old Green Acres: “None of my neighbors around me has signed with anyone yet. I feel like if another company would offer us more that what Twin Cities did ($5500.00/acre) they would get a lot of people to sign with them. From everything I have read the rate should be at least $10000/acre.”<br /><br />Orchard: (actually Gibson Acres which is at the end of Main drag of the Orchard) and have 1 acre and have not been approached.<br /><br />Orchard: “(rural South Bossier) Own 1.5 acres, haven't signed with anyone.Working with HOA president to determine who left in my neighborhood hasn't leased already. Many did back in Jan-Feb timeframe for $250 per acre and 18% royalties.”<br /><br />Lakewood: “our developer… retained the mineral rights on our sub. (Forest Hills in Haughton too.) So unless it has been 10 years since your BUILDER bought the lot, you likely don't hold the mineral rights.”<br /><br />Lakewood: “…in the newer developed section, close to where it connects to Swan Lake. I received an offer last week [early june] of $5500/acre; 1/4 royalty; 3 year term, 2 year option…”<br /><br />Carriage Oaks: “…received three letters so far from Twin Cities. Last offer on 5/31/08 was $5500 bonus, 1/4 royalty, 3 yr lease with 2 yr option. I have not signed yet.”<br /><br />River Bend: “… our latest offer is $5,500.00 an acre. Wonder what the next offer will be?”<br /><br />Caddo<br /><br />Generally:<br /><br />“Landowners in the area around Berean Baptist Temple, Mansfield Road, Shreveport supposedly signed for $12,700 bonus, not sure of royalty.”<br /><br />“ellerbe road got 15777.00 for one acre and 25%.”<br /><br />“I heard Country Club Estates just signed a deal for $27,000.00 and 25% but I do not know which company.”<br /><br />“Petrohawk offered $16,500 with 25% royalty to the Ellerbe Road people. No deal has yet been finalized.”<br /><br />“At Shreveport meeting last night lady who handles state land said average bonus paid to them in Caddo Parish was $13,400”<br />“She also mentioned the ones in the Haynesville shale area were higher than the state average and some where as high as $17,000.00 per acre or more even for smaller 19 acre tracts”<br /><br />Broad Acres: “…area of Shreveport. She recently signed a lease for $10,500.00 per acre with 25% royalty and a no drill clause with Chesapeake.”<br /><br />Keithville: “Fountainbleu subdivision in Keithville considering $12,500 acre with 25%.”<br /><br />Stonewall: “one neighborhood recently signed for $7,500.00 per acre with 25% royalty with Chesapeake.”<br /><br />“A good friend of mine worked with his neighbors in Stonewall and rallied together to unify. They were about to sign for 6000/acre up front/30 royalty but stopped short. They were approached by an investment banker and he said he could get them 15000/acre and 27 royalty.”<br /><br />West Shreveport “…and have been offered (final) $10'500.00 depending on 90% of the residents signed with 25% royalty, 3yr primary lease term with a 2 yr option from Twin Cities. The $ amount drops if the % of residents go down ( if they get 80% signed - $9000.00 or 75% - $8000.00).”<br />Claiborne.<br /><br />Off W. Lakeshore at Sec 20 Township: “I received an offer early this year from a company for $100 an acre. I don't recall the company name. On April 20 I received an offer from Martin Producing for $350 an acre. On May 18 I received a blank lease from Pangaea Land Services stating they were working for Petrohawk”<br /><br />DeSoto:<br /><br />Just south of Mansfield: “We have two landmen seeking leases. We countered at $12,500 per acre and 25% royalty. What are the names of the reports that will be published next week? I read the article of the prices the state received on its leases which was $11,750 to $15,895.”<br /><br />Just south of Mansfield: “just outside of Mansfield and the first offer was only $2,000.00. with out even responding to that offer I rec'd an email offering $5,000-3yrs with 25% royalties. I thought that was a bit strange for him to go up w/o any response from me so as a result I have not signed. Oh, this was from costal out of Lafayette...”<br /><br />Natchitoches<br /><br />Generally<br /><br />“Has anyone heard of any others than Encana leasing in the Fairview Alpha area just south of Red River parish? Also what about the west side of Black Lake we also have land there? I can walk across the road and land there has been leased for $4000 an acre in Red River parish but I can only get an offer of $2000 an acre for being in Natchitoches Parish.”<br /><br />Sabine<br /><br />“In Sabine, now hearing $15,000/acre......there and in far Southern DeSoto.....apparently, the Shell wells are becoming public knowledge of having "confirmed the extension southward" at least to their latest wells in northern Sabine Parish.”<br /><br />Between Many and Zwolle on hwy. 1216, “we have been offered 1000…”<br /><br />“We were offered $500 - $1500. We got $4000. Might could have gotten that on our own, but we know our papers are in good shape and we got things we had not thought of. We just wanted to get the land leased and let the clock started ticking....they have three years...that's it.”<br /><br />Webster<br /><br />North of Hwy 80 & between 79 north: “There has been some seismic testing going on just to the north of hwy 80 and between 79 north over to the Claiborne parish line. This is in what is called the Minden Field. Many old gas & oil wells are located there already, with much of that land already under lease for many years now. Also location of one of the old salt domes.”<br /><br />“That's why all the leasing (supposedly) north of 1-20 has stopped. They have to define our part of the gray zone. If it starts to heat up in Webster Parish we can draw our own conclusions!”<br /><br />Doyline: “Heard today of two families in Doyline that received offers of $1,000 per acrea/25% and also 4,000 per acrea/25%.”<br /><br /><br />###Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4352785374251494361.post-7683903411004992172008-06-24T14:10:00.000-04:002008-06-24T14:11:57.104-04:00Goodrich is Moving in Haynesville ShaleMust like what it sees.<br /><br />From Reuters.<br />June 23 (Reuters) - Independent oil and gas explorer Goodrich Petroleum Corp (GDP.N: <a href="http://uk.reuters.com/stocks/quote?symbol=GDP.N">Quote</a>, <a href="http://uk.reuters.com/stocks/companyProfile?symbol=GDP.N">Profile</a>, <a href="http://uk.reuters.com/stocks/researchReports?symbol=GDP.N">Research</a>) said it has agreed with a private company to acquire a 50 percent non-operated interest in 5,800 gross acres in the hot Haynesville shale play in Louisiana.<br />Advances in drilling and high oil and natural gas prices have triggered a frenzy of exploration activity among energy companies in "unconventional" fields like the Haynesville, where oil and natural gas are locked in substances like shale that were once considered too costly for drilling.<br />Goodrich said it will pay about $3.3 million to buy a 50 percent non-operated interest in 5,800 gross acres, 2,900 net to the company, in the Central Pine Island field, adjacent to its Longwood field in Caddo Parish, Louisiana.<br /><br />Earlier this month, Chesapeake Energy Corp (CHK.N: <a href="http://uk.reuters.com/stocks/quote?symbol=CHK.N">Quote</a>, <a href="http://uk.reuters.com/stocks/companyProfile?symbol=CHK.N">Profile</a>, <a href="http://uk.reuters.com/stocks/researchReports?symbol=CHK.N">Research</a>) agreed to pay $178 million to buy into Goodrich's property in the Haynesville shale.<br />With the completion of this transaction and the previously announced joint venture with Chesapeake Energy, Goodrich has a total of about 22,000 net acres in north Louisiana, the company said.<br /><br />Goodrich also raised its second quarter production forecast to an 8 to 11 percent sequential growth rate over the first quarter, up from its prior outlook of 5 to 9 percent sequential growth.<br />The company now expects net daily production volumes for the second quarter to average between 62,500 and 64,000 Mcfe.<br />Citing anticipated increased drilling activity, primarily driven by its Haynesville Shale program, the company also announced an increase in its preliminary capital expenditure budget for 2008 to $350 million, up from $275 million.<br /><br />Shares of Goodrich are up 172 percent so far this year. They closed at $61.53 Friday on the New York Stock Exchange. (Reporting by Hezron Selvi in Bangalore; Editing by Jarshad Kakkrakandy)Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4352785374251494361.post-20735554989641706152008-06-24T13:52:00.000-04:002008-06-24T13:57:42.628-04:00Welcome to Haynesville Shale!Not sure how active this site will be. I mainly wanted to begin this site to draw you to the site that I have started that is really getting the high traffic. <a href="http://www.gohaynesvilleshale.com/">http://www.gohaynesvilleshale.com/</a>. At this site, hundreds of landowners are networking and learning from each other. Also, gas industry pros are contributing their expertise as well. It is certainly the place to be if you want to get a leg up and be in the know when that landman shows up at your door. So check it out. I think you'll be glad you did.Unknownnoreply@blogger.com0