This blog is hosted by the Louisiana Oil and Gas Association. We are a non-profit association that has been in operation for over 13 years. We hope to provide useful information and answers to your questions about the activity in North Louisiana, called the Haynesville Shale.
Wednesday, June 25, 2008
Welcome - Q & A
Welcome to the Louisiana Oil and Gas Association (LOGA) blog - this is the place for professional answers to your questions about the Haynesville Shale. Please feel free to ask anything and we will answer your questions as best we can.
59 comments:
Anonymous
said...
We have 435 acres in the Northern Red Dirt Area, approximately 4 miles from the Flora/Cypress Exit 126 on I-49. Rumor has it that testing for natural gas in this area will begin in a few weeks. What is the likelihood of our land being included in this shale research?
I have 200 acres 10 miles south of exit 126 on I-49, off of Coco Bed Road, that runs along Cane River. Is this area included in the searching for natural gas? Can land be leased for mineral rights if it is in WRP or CRP?
Im not sure of the likelihood of your particular land being included in the testing in that area. I know that it is currently uncertain how far the shale extends in all directions. If testing is being done in areas around your land, chances are that if resources are found inthose tests, you land would be of interest to operators as well. Only time and testing will tell how far the Haynesville Shale will reach.
My response to you is similar to that of Duana's. I expect that eventually all land in the area will be tested and explored, but until then we wont know if successful wells will be completed.
For your second question, could you clarify WRP & CRP.
Does your organization mainly represent the landowner or the oil and gas company? If you represent both, how do look out for each other's interest at the same time?
The Association represents all facets of the oil and gas industry. This includes landowners, exploration companies, service companies, legal, etc. We have members from all of these different arenas. In most cases what benefits one benefits the other as well. We do not intercede in day to day operations, so we are rarely forced to represent one over the other. There is also the Louisiana Landownders Association who specificly represent landowners interest and is an Association we work very closely with. In the end we work to benefit the industry as a whole, and that helps everyone.
If there is a more specific issue i will be more than happy to see if i can help you with that as well.
We hope to have Kevins presentation up on the site for download as well. We are just waiting on his approval to convert it to a PDF and post on the site to be downloaded.
Here is the answer to your question about WRP - Yes - you can lease your lands in those areas, there may be some restrictions regarding operations, but that is not the landowner's concern
Must oil companies report drilling activity and is it public record? Where can I find out what land in an area has leased mineral rights by what company? Is it public record who owns a well, for example the Messenger well near Powhatan?
How long does it take to for a seismic test to be completed? There is current activity in the Ashland area, but we can't find out how long before the results are public.
Unfortunately, I cannot give advice on when to or not to enter into a lease agreement.
The length of time a well will produce varies immensely. We still are not sure how long wells in the Haynesville will produce. For everyone's benegit, lets hope for 10 years or more.
I am working on getting a correct answer to your other question.
Lease flipping is really not that different from flipping a house. Someone would lease your mineral rights or land from you, and would then turn around and lease to someone else for a larger amount.
Is there any exploration for natural gas or oil in the Vernon Parish area? I am in the process of buying a home with some acreage. Is there a minimum acreage amount before they will consider exploration on someone's property?
I do not know if there is any exploration or seismic activity in your area. Currently, I dont know of anyone that thinks the Haynesville Shale activiy will run taht farsouth, but that does not mean that it wont, only time will tell.
There is no minimum acreage you must own to participate. The lease of your minerals is based on your acreage and the royalties are as well. You get paid a percentage of a total unit (usually 640 acres) that you lease. If you are looking to purchase and want to be able to lease your mineral rights, make sure that they are included in your pruchase.
I would like to know if you can tell me how far north in Caddo Parish the Haynesville Shale is? Does it run along any of Highway 71between Shreveport and the state line of Arkansas?
I watched a video clip of a news program from the Shreveport area, I believe. In the clip the person said that unless you owned the land and had the deed in hand then you didn't have the mineral rights. From what I gathered from the clip they were saying that if the land wasn't paid off then you couldn't lease it. Is this true?
Land and mineral rights are separate things. You can sell your land but maintain your mineral rights. If you purchased or sold land, you would need to look at your deed/contract to determine who has the rights to the minerals.
As far as needing to have paid off your mortgage, i dont think so, but i will do a litte research to make sure.
I heard that they believe that this scale will eventually cover half of Louisiana, is that true. Could people from Central Louisiana such as Alexandria be in the big boom. Which would be nice
While it is possible, it is unlikely that the shale will extend that far. There are tests going on in Nachitoches now to see if it extends that far south. We can hope that it covers that much area, but until testing is done , there is o way of knowing. Keep your fingers crossed
I have 6.88 acres in township 12 sec 12 range 6 W in Natchitoches Parish. SEI is doing a seismic shoot on my property (3D) now. Is it likely the Shale is in my area? I do know that 40+ years ago they found oil/gas both on the property however it wasn't economically feasible to drill at that time. Let me know if you have any information you can share on my area. Thanks Natch
All i know is that there is seismic going on in the area. There will be no way to know the results until activity begins, or it doesnt begin, as seismic info is not public. We all hope it does extend as far south as you are.
Here is the location of the seismic presentation. Kevin Hill is the presenter.
I would like to know if they are going to check around the alexandria area? I know someone who found natural gas on their property but it was capped off saying it wasn't enough to bother with.
Are they going to even check the areas south of Natchitoches or does the buck stop in Natch. Do u know how far south their are checking on Hwy 71. Also I've heard that they have evidence that there is gas all they way down Red River, is that so? Now stories are becoming wild and bizarre
Just wondering about good old Plain Dealing. So many people up here own a lot of land and everyone is wondering if we are in the shale or not. Also has there even been testing for gas here? Thanks.
Anonymous - as far as Alexandria and Natchitoches are concerned, testing will continue in to all parts of Louisiana until the extent of the shale is determined. The further away from the "hot zone" you are, the longer it will take to determine if the shale extends in to your area. I know there is some seismic testing going on north of natchitoches, but beyond that I dont know. So all we can do is sit back and patiently wait and let this play out.
Plain Dealing does appear to be in the projected shale area. However, until there is seismic testing done and test wells drilled, we will not know for sure. Again, exploration will extend outwards from the center, like spokes on a bike. All we can do is wait.
Forced pooling occurs when a majority of mineral owners in a unit (640 acres) have agreed to lease their minerals. The remaining un-signed mineral owners can entered into force-pooling, so that the well can be drilled. The owners who are entering into forced pooling will generally be given options on how they will be compensated, and may even have the option to participate in the cost of the well. This would increase the returns from a successful well, but would also require more upfront money.
Hello, I have a friend that bought property in 2001 without minerals, although they sold it in 2005 and the title did not say minerals withheld on it the party that bought it thought they had the minerals. What is their recourse if any?
This is a little outside of my area of expertise. Most likely, all interested parties will need to contact a lawyer to address their particular role and position in this situation.
is there a time frame in which O & G companies are supposed to update Sonris on well production or drilling results?..I've been watching the Messenger Well in Allen (Natchitoches Parish) and it would seem the entries of information are erratic at best...does someone regulate this?>
Where can we find information to tell us if a well has been successful in our area? I am located in North Natchitoches parish. I was wondering about the well located by the Ajax/Lake End exit on I-49.
The Office Of Conservation handles rig production data. There are some rules regarding when data must be sent to the State, but that is where you would look.
I signed a mineral lease and sold the property later on that year with minerals. If production starts who will receive the royalties me or the new owner? Also, when the lease expires will they renew with me or with the new owners?
The lease does transfer to the new owner. the new landowner needs to contact the E & P company and let them know that a transfer of ownership of the minerals has occurred.
I own land in Plain Dealing. I know only time will tell just how far North this play will go. Can you give me any info on this area. I am hearing lots of conflicting arguments.
Unfortunately I do not know any more than you do. If you would like to send me an email with what you are hearing, maybe i can help weed out what is more or less correct
Unfortunately sir, there is no State Agency that governs mineral leasing arrangements between companies and private citizens. You are more than welcome to contact the company to discuss what happened, or if you feel it necessary, you can seek legal counsel to review your contract to see if there is anyway that you can legally break your contract.
I know that there has been in a successful well drilled in Nachitoches Parish, but im not sure of its location. I also know that there is ongoing seismic testing in the area as well.
Ok I've just heard about this gas find. I live in Colfax,La and heard they found gas north of here in Montgomery,La. Can someone please tell me if this is true. From what we are hearing...they have positively found gas that they believe is part of the shale.
I need a good lawyer with knowledge of both succession and oil and gas law to represent the adult children with naked interest against their stepfather with usufruct interest in a dispute involving division of 11 acres within the Haynesville Shale area. Any recommendations would be appreciated.
We have an oil rig located appx. 200 yards from some property I have and want to know if can help me get a map to see if I'm in the block to get some of the royalties? I'd greatly appreciate!
All messages made available as part of this discussion group (including any bulletin boards and chat rooms) and any opinions, advice, statements or other information contained in any messages posted or transmitted by any third party are the responsibility of the author of that message and not of LOGA (unless LOGA is specifically identified as the author of the message). The fact that a particular message is posted on or transmitted using this LOGA web site does not mean that LOGA has endorsed that message in any way or verified the accuracy, completeness or usefulness of any message. Any messages that are authored by LOGA are solely meant for informational purposes and in no event shall LOGA be liable for any consequential, incidental or direct damages suffered in the course of using the information. We encourage visitors to the forum to report any objectionable message to Gifford@loga.la. This forum is not monitored 24/7."
59 comments:
We have 435 acres in the Northern Red Dirt Area, approximately 4 miles from the Flora/Cypress Exit 126 on I-49. Rumor has it that testing for natural gas in this area will begin in a few weeks. What is the likelihood of our land being included in this shale research?
I have 200 acres 10 miles south of exit 126 on I-49, off of Coco Bed Road, that runs along Cane River. Is this area included in the searching for natural gas?
Can land be leased for mineral rights if it is in WRP or CRP?
Duana:
Im not sure of the likelihood of your particular land being included in the testing in that area. I know that it is currently uncertain how far the shale extends in all directions. If testing is being done in areas around your land, chances are that if resources are found inthose tests, you land would be of interest to operators as well. Only time and testing will tell how far the Haynesville Shale will reach.
Greg:
My response to you is similar to that of Duana's. I expect that eventually all land in the area will be tested and explored, but until then we wont know if successful wells will be completed.
For your second question, could you clarify WRP & CRP.
WRP....Wetlands Restoration Program, and CRP...Conservation Reserve Program...Federal programs.
Does your organization mainly represent the landowner or the oil and gas company? If you represent both, how do look out for each other's interest at the same time?
The Association represents all facets of the oil and gas industry. This includes landowners, exploration companies, service companies, legal, etc. We have members from all of these different arenas. In most cases what benefits one benefits the other as well. We do not intercede in day to day operations, so we are rarely forced to represent one over the other. There is also the Louisiana Landownders Association who specificly represent landowners interest and is an Association we work very closely with. In the end we work to benefit the industry as a whole, and that helps everyone.
If there is a more specific issue i will be more than happy to see if i can help you with that as well.
Will the Seismic Presentation that Kevin Hill gave be posted on the website?
We hope to have Kevins presentation up on the site for download as well. We are just waiting on his approval to convert it to a PDF and post on the site to be downloaded.
Greg:
Here is the answer to your question about WRP - Yes - you can lease your lands in those areas, there may be some restrictions regarding operations, but that is not the landowner's concern
Anonymous -
Seismic presentation is now available on the website.
Must oil companies report drilling activity and is it public record?
Where can I find out what land in an area has leased mineral rights by what company?
Is it public record who owns a well, for example the Messenger well near Powhatan?
Where can I get an accurate map of the Haynesville Shale play (not the drilling activity) that depicts the current and proposed wells?
How long does it take to for a seismic test to be completed? There is current activity in the Ashland area, but we can't find out how long before the results are public.
Reporter:
Yes, Oil Companies must report drilling activity to the Office of Conservation. And the information is public record.
You can find out what land has leased the mineral rights atthe local courthouse.
Yes, it is public record who owns a well.
Mom of 2:
The best place to get a map of the current and proposed wells is the Louisiana Office of Conservation.
Ashland Lady:
Seismic tests vary depending upon the size of the seismic program - in square miles. Most likely between 6 mos - 1 year.
Seismic results are not public record.
Cindy:
Unfortunately, I cannot give advice on when to or not to enter into a lease agreement.
The length of time a well will produce varies immensely. We still are not sure how long wells in the Haynesville will produce. For everyone's benegit, lets hope for 10 years or more.
I am working on getting a correct answer to your other question.
Bridget:
Lease flipping is really not that different from flipping a house. Someone would lease your mineral rights or land from you, and would then turn around and lease to someone else for a larger amount.
Jill:
A section or unit is 640 acres(1 sq' mile).
Yes you do get royalties on activity within your unit as long as you have leased your mineral rights.
A map of a section can best be obtained through the office of conservation.
How do I avoid lease flipping? Can't I just lease for the larger amount and skip the middle man or "flipper"?
How do I avoid lease flipping? Can't I just lease for the larger amount and skip the middle man or "flipper"?
Bridget:
The simple answer is to just avoid them. Take your time and do research. Just like buying a house. Its the sme thing
Is there any exploration for natural gas or oil in the Vernon Parish area? I am in the process of buying a home with some acreage. Is there a minimum acreage amount before they will consider exploration on someone's property?
Ben:
I do not know if there is any exploration or seismic activity in your area. Currently, I dont know of anyone that thinks the Haynesville Shale activiy will run taht farsouth, but that does not mean that it wont, only time will tell.
There is no minimum acreage you must own to participate. The lease of your minerals is based on your acreage and the royalties are as well. You get paid a percentage of a total unit (usually 640 acres) that you lease. If you are looking to purchase and want to be able to lease your mineral rights, make sure that they are included in your pruchase.
I would like to know if you can tell me how far north in Caddo Parish the Haynesville Shale is? Does it run along any of Highway 71between Shreveport and the state line of Arkansas?
Nobody is 100% sure on the full extent of the shale and its boundaries. I do think however that the area you are asking about is covered.
Remember, wells will be drilled where they know they will get the best results first, so it may take time to move to the outer areas.
I watched a video clip of a news program from the Shreveport area, I believe. In the clip the person said that unless you owned the land and had the deed in hand then you didn't have the mineral rights. From what I gathered from the clip they were saying that if the land wasn't paid off then you couldn't lease it. Is this true?
Ben:
Land and mineral rights are separate things. You can sell your land but maintain your mineral rights. If you purchased or sold land, you would need to look at your deed/contract to determine who has the rights to the minerals.
As far as needing to have paid off your mortgage, i dont think so, but i will do a litte research to make sure.
I heard that they believe that this scale will eventually cover half of Louisiana, is that true. Could people from Central Louisiana such as Alexandria be in the big boom. Which would be nice
While it is possible, it is unlikely that the shale will extend that far. There are tests going on in Nachitoches now to see if it extends that far south. We can hope that it covers that much area, but until testing is done , there is o way of knowing. Keep your fingers crossed
I have 6.88 acres in township 12 sec 12 range 6 W in Natchitoches Parish. SEI is doing a seismic shoot on my property (3D) now. Is it likely the Shale is in my area? I do know that 40+ years ago they found oil/gas both on the property however it wasn't economically feasible to drill at that time. Let me know if you have any information you can share on my area.
Thanks
Natch
Also, can you provide the link where the Seismic Presentation is? I've been unable to locate it.
thanks,
Natch
Natch:
All i know is that there is seismic going on in the area. There will be no way to know the results until activity begins, or it doesnt begin, as seismic info is not public. We all hope it does extend as far south as you are.
Here is the location of the seismic presentation. Kevin Hill is the presenter.
http://www.loga.la/Content/LIOGA/IndustryNewsStats/HaynesvilleShale/default.htm
Mr. Briggs Thanks for the link ...however it just brings me to the main page and i cant locate the presenation
if you are at the main page of the haynesville shale at www.loga.la, scroll down and you have 4 presentation and kevin hill is included in those 4.
if this does not help, let me know.
I would like to know if they are going to check around the alexandria area? I know someone who found natural gas on their property but it was capped off saying it wasn't enough to bother with.
Are they going to even check the areas south of Natchitoches or does the buck stop in Natch. Do u know how far south their are checking on Hwy 71. Also I've heard that they have evidence that there is gas all they way down Red River, is that so? Now stories are becoming wild and bizarre
Will you briefly describe the process of force pooling? Doesn't a landowner have to be notified?
Just wondering about good old Plain Dealing. So many people up here own a lot of land and everyone is wondering if we are in the shale or not. Also has there even been testing for gas here? Thanks.
Ok here we go.
Anonymous - as far as Alexandria and Natchitoches are concerned, testing will continue in to all parts of Louisiana until the extent of the shale is determined. The further away from the "hot zone" you are, the longer it will take to determine if the shale extends in to your area. I know there is some seismic testing going on north of natchitoches, but beyond that I dont know. So all we can do is sit back and patiently wait and let this play out.
Plain Dealing does appear to be in the projected shale area. However, until there is seismic testing done and test wells drilled, we will not know for sure. Again, exploration will extend outwards from the center, like spokes on a bike. All we can do is wait.
Forced pooling occurs when a majority of mineral owners in a unit (640 acres) have agreed to lease their minerals. The remaining un-signed mineral owners can entered into force-pooling, so that the well can be drilled. The owners who are entering into forced pooling will generally be given options on how they will be compensated, and may even have the option to participate in the cost of the well. This would increase the returns from a successful well, but would also require more upfront money.
Hello,
I have a friend that bought property in 2001 without minerals, although they sold it in 2005 and the title did not say minerals withheld on it the party that bought it thought they had the minerals. What is their recourse if any?
Anonymous:
This is a little outside of my area of expertise. Most likely, all interested parties will need to contact a lawyer to address their particular role and position in this situation.
Hi,
Is anything going on for the bellevue area? City of Haughton?
Leases or otherwise?
Thanks
is there a time frame in which O & G companies are supposed to update Sonris on well production or drilling results?..I've been watching the Messenger Well in Allen (Natchitoches Parish) and it would seem the entries of information are erratic at best...does someone regulate this?>
The office of Conservation handles reporting guidelines and monitoring of well reporting data.
http://dnr.louisiana.gov/cons/conserv.ssi
Where can we find information to tell us if a well has been successful in our area? I am located in North Natchitoches parish. I was wondering about the well located by the Ajax/Lake End exit on I-49.
THanks
The Office Of Conservation handles rig production data. There are some rules regarding when data must be sent to the State, but that is where you would look.
http://dnr.louisiana.gov/cons/conserv.ssi
I signed a mineral lease and sold the property later on that year with minerals. If production starts who will receive the royalties me or the new owner? Also, when the lease expires will they renew with me or with the new owners?
The lease does transfer to the new owner. the new landowner needs to contact the E & P company and let them know that a transfer of ownership of the minerals has occurred.
I own land in Plain Dealing. I know only time will tell just how far North this play will go. Can you give me any info on this area. I am hearing lots of conflicting arguments.
Unfortunately I do not know any more than you do. If you would like to send me an email with what you are hearing, maybe i can help weed out what is more or less correct
hello my sisteh was given #10,000 acre and i was only given #1,000 and she lives doen the street from me. who do i call about complaining about this?
Unfortunately sir, there is no State Agency that governs mineral leasing arrangements between companies and private citizens. You are more than welcome to contact the company to discuss what happened, or if you feel it necessary, you can seek legal counsel to review your contract to see if there is anyway that you can legally break your contract.
I would like to know if u know about Natchitoches, La. Have they found gas that far or what.
I know that there has been in a successful well drilled in Nachitoches Parish, but im not sure of its location. I also know that there is ongoing seismic testing in the area as well.
Ok I've just heard about this gas find. I live in Colfax,La and heard they found gas north of here in Montgomery,La. Can someone please tell me if this is true. From what we are hearing...they have positively found gas that they believe is part of the shale.
I need a good lawyer with knowledge of both succession and oil and gas law to represent the adult children with naked interest against their stepfather with usufruct interest in a dispute involving division of 11 acres within the Haynesville Shale area. Any recommendations would be appreciated.
We have an oil rig located appx. 200 yards from some property I have and want to know if can help me get a map to see if I'm in the block to get some of the royalties? I'd greatly appreciate!
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