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Introduction

The Haynesville Shale discovery could be the greatest economic boost in the history of Louisiana; however, these wells are being drilled in violation of state law.  Every single landowner in northwest Louisiana should beware of the fact that, whether they like it or not, their properties are being “force-pooled” by the Louisiana Commissioner of Conservation into illegal compulsory drilling units. Violations of our law will expose every property owner to a twisted, unconstitutional system that promotes discriminations.  Our state will be buried in relentless lawsuits.  We must correct the situation.

Commissioner James Welsh has authority to force your property into a geographic drilling unit.  A drilling unit is defined by law as the maximum area that may be efficiently and economically drained by ONE well.  The law also requires that this single well be drilled in the “optimum position” of each unit for the most efficient and economic drainage of the unit.  Each mineral owner is due his proportionate part of current production from the entire gas field.  The result was intended to be a reasonably uniform pattern of drilling that is fair to everyone and compliant with the “equal protection” provisions of our state and federal constitutions. 

Unfortunately Commissioner Welsh is ignoring our law.  Instead of requiring one-well-in-the-optimum-position-of-each-unit, he is allowing companies any-number-of-wells-anywhere-in-any-unit!   This promotes discriminations as companies are inclined to drill more wells in units where they have better lease terms, or in units where they can take advantage of surface-only owners.   At this time some 640 acre Haynesville units have two, three or even eight producing and permitted wells while neighboring units remain undeveloped.  With the illegal drilling being allowed in the Haynesville and other formations some surface owners are now facing more than 50X the amount of surface loss they anticipated when they bought their properties, and many mineral owners will sit for decades in undeveloped sections while surrounding units prosper with multiple wells.  This is grossly unfair and unconstitutional!

While property owners all over northwest Louisiana are excited about the Haynesville Shale discovery, everyone deserves fair opportunity for their minerals to be developed and enter the gas market…and in a reasonable time frame.  Our current law – even if it were enforced – is inadequate to govern the Haynesville Shale.  Over the years our state legislature has enacted laws for different types of units for different situations and it is critical our state government recognize the need for a new type of compulsory unit to govern the Haynesville Shale.

Please help!  Consider taking a few minutes to write Governor Jindal and request his oversight for new legislation – for a new type of compulsory unit, created specifically for the Haynesville Shale – that will allow these multi-well, 640 acre shale units, but with additional provisions to protect property rights.  Exploration and production among units should be required to be balanced over time, as much as practical, to assure equal protection for property owners.

The Governor’s address is: 

The Honorable Governor Bobby Jindal
P.O. Box 94004
Baton Rouge, LA 70804-9004

(If you email to fairdrilling@aol.com a copy of your letter to the Governor we will add you to our address book and keep you updated on our progress!)