Barnett Shale Updates
| 03-01-10 80% ? Many of you have recently been contacted by the landmen that are representing Chesapeake Oil. The company is 4 7's and is based in River Oaks. These guys are telling you that they have 80% of the land leased. I can find, nor do they offer, any proof of this claim. I can, however tell you that a recent sampling I did via email resulted in just the opposite. I found that only 12% of the lots are leased. So I would have to say that unless there is a margin of error that amount to 68% they are in fact being less than honest. I would invite them, and have done so, to correct my findings at any time. Force Pooling The first threat comes in connection with the 80% fallacy. In order for the driller to request a forced pooling of the unleased lots they must have a certain percentage already leased and I can only assume that figure is around 80%. However our councilman, Carter Burdette, tells me that they only resort to forced pooling as a last resort since the people forced into a lease then become equal share partners with the driller. Rule 37? We have also seen letters from the 4 7's group threatening to invoke rule 37. Rule 37 refers to the issue of drainage. In other words they can drain the gas from under your property without a lease so long as they don't trespass on your land. The regulations concerning trespassing say that the drill bore can go no closer that 577 feet to an unleased property. Gonna be hard to manage that when the fracing distance on the horizontal bore is 500 feet in any direction. |
| Barnett Shale Progress? |
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