When EnCana redraws the lines - landowners lose
Below you see a redrawing of the SONRIS map for the Cross Lake/MLK area. This will help explain what is happening in this area. There are several features to note.
First, the light blue areas with names like “HA RA SUA” are Drilling and Production Units already established by the Commissioner of Conservation. “Normal” Units for the Haynesville Shale are on the geographical section lines (green line grid). The units at the top of the map are Normal Units. The “problem” started with the exceptional Unit HA RA SUA (lower left hand side of the Map). This Unit was not on the section line because there was no drill site in Section 36, which was mostly in the lake.
Second, EnCana proposed new Units on the East end of Cross Lake. They extended the North and South Unit lines from the HA RA SUA eastward (dashed red lines), to form the South and North Unit lines for EnCana Unit 1 (pink shading). This cut off and “Orphaned” the bottom one third of Section 33 (green shading). EnCana also proposed another Unit (EnCana Unit 2) on top of EnCana Unit 1 with the same deviation from the Section lines. This created an Overlap into Section 28, which lies North of Section 33. These Units were proposed back in May and the Hearing has already been had before the Conservation Commission in Baton Rouge. HSLA attended and objected to the formation of these Units as proposed.
Last month, EnCana proposed another Unit Unit 3 (yellow shading). Their proposal again Orphaned the lower third of the Section and overlapped into the adjoining Section to the North.
The “Problem” started to become evident, as you will see in the map below.
The Units already established to the North, like Book Ends, stop the progress of the deviated Units which Encana proposes. What happens is two Units across have to be shortened (the North-South direction) before you hit the Book Ends. See the purple dashed lines around those Units yet to be formed.
The consequences become obvious. No Operator wants a Unit that is “short” in the North-South direction. During the discovery phase of the Haynesville Shale Play, gas companies have learned that the shale is laid down in a North-South pattern and it fractures better and therefore, gives up more gas when the laterals run North-South. Bottom line is: the longer the North-South Lateral, the better the return. No good operator will want a Unit that is short in the North-South direction. Like the game of musical chairs, when the next units are formed, someone won’t have a chair and is going to be out of the game. No Lease and No Bonus!
Not only will this likely cut out two thirds of two of the MLK Sections, but it’s already cut out the bottom one third of Section 33 and section 27 - the “Orphaned” tracts. Opposition to this plan may also help stop the plan with the Commissioner of Conservation which is still under consideration in Baton Rouge.
State law only requires that those in the proposed Unit and immediately neighboring the Unit be notified of a Proposed Drilling Unit. Many folks in the area covered by this map would not have gotten Notice of what EnCana proposes. Not many of those would realize what the CONSEQUENCES will be of their plan. It’s time to wake up and HSLA is sounding the call.
THIS IS THE TIME FOR ACTION. The next opportunity is in Baton Rouge at the Commissioner’s Hearing. If you are not informed and prepared, it may be too late and the music may stop for you. HSLA needs your support and your membership. We invite you to join us in this important fight for the Landowners of this Neighborhood.
