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Started By
Message
re: Haynesville Shale
Posted on 6/15/08 at 7:43 pm to TigerStuckinOkieland
Posted on 6/15/08 at 7:43 pm to TigerStuckinOkieland
Thank you for your response. I am NOT going to lease for $500.00 per acre, would not even consider it. I was just making a joke that maybe I will receive a larger, more reasonable offer than $500.00.
1
Posted on 6/16/08 at 12:03 am to insomniacnla
Anybody:
I have been offered a lease with the following clause " this lease excludes the Haynesville Shale formation as defined in the Office of Conservation including the Haynesville Sand formation as described by Order No. 329-C-1". The lease is for land located in T23NR13W which by most available information is too far north for the Haynesville Shale anyway. Obviously the OG company is trying to keep the bonus money/royalty from being unduly influenced by all the Haynesville play, factual and rumored. All the other mineral owners in my section were leased before Haynesville play became public so their leases have no such exclusion.
I've nevertheless tried (unsuccessfully) to find copies of the referenced orders to see what is being excluded. The lease, at my request, also includes both vertical and horizontal Pugh Clauses. The pooling clause allows one or more units/640ac (max) for gas and one or more units/80ac (max) for oil. Is this standard unit spacing in Louisiana and is it controlled by the State?
While extremely unlikely, what would happen if a well in my section/unit did produce from multiple zones including Haynesville Shale and/or sand? How would I know? From production reports files with the State? Is there anything else I should do to protect my interests, real or future potential?
Any suggestions would be appreciated.
I have been offered a lease with the following clause " this lease excludes the Haynesville Shale formation as defined in the Office of Conservation including the Haynesville Sand formation as described by Order No. 329-C-1". The lease is for land located in T23NR13W which by most available information is too far north for the Haynesville Shale anyway. Obviously the OG company is trying to keep the bonus money/royalty from being unduly influenced by all the Haynesville play, factual and rumored. All the other mineral owners in my section were leased before Haynesville play became public so their leases have no such exclusion.
I've nevertheless tried (unsuccessfully) to find copies of the referenced orders to see what is being excluded. The lease, at my request, also includes both vertical and horizontal Pugh Clauses. The pooling clause allows one or more units/640ac (max) for gas and one or more units/80ac (max) for oil. Is this standard unit spacing in Louisiana and is it controlled by the State?
While extremely unlikely, what would happen if a well in my section/unit did produce from multiple zones including Haynesville Shale and/or sand? How would I know? From production reports files with the State? Is there anything else I should do to protect my interests, real or future potential?
Any suggestions would be appreciated.
Posted on 6/16/08 at 12:28 am to dsquareg
I am surprised that any company would offer to exclude the shale where you describe because it is way too far North to be viably productive. Also, are you attempting to exclude the Haynesville sand? That would likely be a primary target where you describe since it has produced in the area since the 1980's. The unit sizes you describe I am guessing reference the acreage that can be retained by a well in the event no unit is formed by the State. The Haynesville sand in your area has already been unitized by Crystal Oil Company in the 1980's on 640 acre spacing. Many leases will include language that regulates the amount of acreage to 160 acres for a gas well and 40 acres for an oil well that can be held if no unit is formed with the LA Department of Conservation. Any time a unit is formed all the acreage under lease will be retained inside that unit, assuming it is formed through order by the state conservation department. My thoughts are that your best bet is to include horizontal and vertical pugh clauses to protect your deep rights.
This post was edited on 6/16/08 at 12:29 am
Posted on 6/16/08 at 1:00 am to TigerDog83
TigerDog 83
Thank you for your very helpful response. I think the OG company included the Haynesville exclusion to keep the bonus money more reasonable since most everyone, even this far north, is afraid to sign away anything for what they were happy to get a couple of years`ago. I'm quite content to accept a reasonble bonus and royalty recognizing the land is not in the Haynesville boundary area.
If Crystal unitized the area in 640 acre spacing will that spacing still apply to a new production company? Was the 640 for gas only or for gas and oil? The Pugh clauses are included in the current lease.
Thanks again for your response, I read all your posts and value your opinion highly.
Thank you for your very helpful response. I think the OG company included the Haynesville exclusion to keep the bonus money more reasonable since most everyone, even this far north, is afraid to sign away anything for what they were happy to get a couple of years`ago. I'm quite content to accept a reasonble bonus and royalty recognizing the land is not in the Haynesville boundary area.
If Crystal unitized the area in 640 acre spacing will that spacing still apply to a new production company? Was the 640 for gas only or for gas and oil? The Pugh clauses are included in the current lease.
Thanks again for your response, I read all your posts and value your opinion highly.
Posted on 6/16/08 at 5:39 am to dsquareg
Order 329-C-1 is for gas and condensate.
Once an order is established it applies to all future drilling for the lands shown on the plat for the order (unless amended). It is not just for the original applicant.
The lease you have is fine. They, obviously, do not care about the Haynesville there. Crystal drilled the heck out of it and got very little production.
Once an order is established it applies to all future drilling for the lands shown on the plat for the order (unless amended). It is not just for the original applicant.
The lease you have is fine. They, obviously, do not care about the Haynesville there. Crystal drilled the heck out of it and got very little production.
Posted on 6/16/08 at 6:20 am to justbill
The rumors come to fruition.... CHK buys an interest in GDP acreage. Kudos PBeard and Tigerdog.
Posted on 6/16/08 at 11:43 am to igoringa
From talking to various people that have leased land, it seems that many were paid the lease bonus by bank draft, which would be paid to there bank account within 60 days. Questions are now coming up as to what if they do not receive payment, can they just walk away, and lease to someone else? Their lease does not have a time frame for payment, but does give the leasee the opportunity to void the lease for any number of reasons. Basic contract law requires that both partys show consideration, or the contract is not valid, so you obviously cannot have an open ended contract and wait forever on payment. Can anyone provide more info on this situation.
Posted on 6/16/08 at 11:58 am to JWS3
The typical draft says "___ days after sight and subject to approval of title." The time period begins after it hits the Lessee's bank, and it's considered banking days, not calendar days. They are obligated to pay unless it is found that the Lessor does not own the mineral rights.
Posted on 6/16/08 at 8:15 pm to insomniacnla
send me an e-mail with a phone number and I will make sure you get some attention from one of the major players
Posted on 6/16/08 at 8:18 pm to GeneralLee
send me an e-mail with you phone number and i will make sure you get the attention of the major player in the trend. No cost to you.
Posted on 6/16/08 at 8:19 pm to GeneralLee
send me an e-mail with you phone number and i will make sure you get the attention of the major player in the trend. No cost to you.
Posted on 6/16/08 at 8:39 pm to Greg Wood
Thank you for the lead, what is your email address? I don't want to post my number here LOL
Posted on 6/16/08 at 8:46 pm to insomniacnla
Anybody know the name of Land Man companies in Shreveport??
Posted on 6/16/08 at 9:09 pm to PBeard
Has Chesapeake opened an office in Shreveport yet? I have been trying for about two months to contact someone about a job in the production end, but as you can see I have been unsuccessful. My email is coreyatkmg@yahoo.com just in case you don't want post anything on here.
Thanks,
Corey
Thanks,
Corey
Posted on 6/16/08 at 9:32 pm to TigerFanatic1
Tiger Dog,
I am so glad to have found this site. About three years ago, we leased our land to Pinnical Oil out of Shreveport. Of course, we signed the normal lease of $100 per acre and 3/16 royalty. There is a producing well in my unit. I live in North Sabine about 1/2 mile from the DeSoto parish line. I am wondering, how I and many more will be affected. Several years ago, no one knew this was coming. This is just a general lease that does not mention a depth. There are several gas wells in the area. I enjoy a small royalty check every month, but nothing like what might be possible. Do larger companies usually buy out smaller ones? The wells here now are mostly above 10,000 ft. I feel that I should try and gain some knowledge and not just take an "oh well" attitude.
I am so glad to have found this site. About three years ago, we leased our land to Pinnical Oil out of Shreveport. Of course, we signed the normal lease of $100 per acre and 3/16 royalty. There is a producing well in my unit. I live in North Sabine about 1/2 mile from the DeSoto parish line. I am wondering, how I and many more will be affected. Several years ago, no one knew this was coming. This is just a general lease that does not mention a depth. There are several gas wells in the area. I enjoy a small royalty check every month, but nothing like what might be possible. Do larger companies usually buy out smaller ones? The wells here now are mostly above 10,000 ft. I feel that I should try and gain some knowledge and not just take an "oh well" attitude.
Posted on 6/16/08 at 10:09 pm to Greg Wood
gkwood57@yahoo.com
Posted on 6/17/08 at 6:15 am to copalot
There is a rumor of a deal between Pinnacle and Chesapeake, but nothing definite.
Posted on 6/17/08 at 8:17 am to pittboss33
I find it hard to believe that a well location could drain 1920 acres. I don't think the laterals could extend far enough away from the wellsite to do that. I figure it's a ploy to hold more acreage for each horizontal well. I understand why they would do that; they are going to spend a fortune on each horizontal well and they want to earn/hold as much acreage as possible. But that doesn't mean I'd want that clause in the lease, haha. If anyone has an argument in favor of that, advise.
How the heck do you quote content within a prior post? Do you have to manually cut and paste?
How the heck do you quote content within a prior post? Do you have to manually cut and paste?
Posted on 6/17/08 at 8:20 am to pittboss33
Does anyone know of any data or test wells to suggest that the east sligo area in Bossier parish, specifically T17N R11W, is within the boundaries of the shale zone?
Posted on 6/17/08 at 8:22 am to olddog573
He reports of a BP Pic test well in RusK County flowing at 26 million cubic feet per day.
What does "BP Pic" mean? Anyone know if that 26MMCFGD is for real?
What does "BP Pic" mean? Anyone know if that 26MMCFGD is for real?
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