Haynesville Shale Landowners Association. A Non-Profit organization - formed BY Landowners, FOR Landowners. The HSLA educates, protects and negotiates for Landowners and can help you through the entire process of getting leased & developing your minerals.

Section 2 and Chesapeake unitization activity -

The HSLA is aware of the Pre-Application conference to be held by Onebane for Chesapeake on unitization application for Section 2 and Section 11 (17-15). Thank you to those who gave us a heads up.

Remember, we are not going to get this kind of notice, so you need to keep us informed. We plan to attend the meeting on January 21st. Of course, Chesapeake needs a Unit to produce these sections, so this is a good development. We understand that they have picked up the Samson leases in the Southwest corner of the Section 2 and plan to drill from there.

This does indicate a strong interest in drilling section 2 and we are in contact with Twin Cities regarding leasing now that they are getting more serious. We do not have a fixed drill site for Section 11 yet. Let us know if you hear or see anything about this.

Pipeline prospects are not yet materialized either, but if any Member is approached by a landman for a right of way (or drill pad), please let us know so we can anticipate their next move.

As to concerns that drilling one section will drain another, there are regulations which must be followed that prevent such drainage. As tight as the shale is, they can only drill a lateral within 330 feet of the Unit line. The petroleum engineers for the companies and the State are convinced that this spacing prevents drainage, section to section, yet leads to full development of each section's resources. Of course, who can know for sure, but that is the prevailing wisdom. That is the wisdom used for over two hundred units that have been approved thus far by the Commissioner of Conservation. Each section and its neighbor will be developed eventually, so everyone should benefit equitably by the operations, based upon their surface area.

Thank you for your concern and for keeping us advised of what is going on in your locality.

January Meeting reminder -

Our next HSLA Public Meeting will be January 28 at 7PM at the American Legion located at 5315 South Lakeshore Drive in Shreveport. We hope to see you there.

FOR MORE INFORMATION ABOUT THE HSLA - www.gohsla.org or PHONE: (318) 865-2432

Sincerely,
HSLA Staff Attorney

Go HSLA!