LOGA Industry Report - Fall 2015 - (Page 81)

fEATURE LeGISLaTIVe UPdaTe Louisiana Legislature Passes New Law on Drilling Units by Randall C. Songy, Jeremy B. Shealy and Ross F. Roubion ONEBANE LAW FIRM, A Professional Corporation the louisiana legislature recently passed act no. 253 of the 2015 regular session. this new law makes a couple changes to the law concerning drilling units, each of which is addressed below. new Conservation law Changes definition of "drilling unit" The Louisiana Legislature recently passed a new law, Act No. 253 of the 2015 Regular Session, which changes the definition of a drilling unit. The new definition accords with longstanding Office of Conservation practice. The previous definition stated: "A drilling unit, as contemplated herein, means the maximum area which may be efficiently and economically drained by one well." La. Rev. Stat. Ann. 30:9 (emphasis added). Now, however, the new definition states, "A drilling unit, as contemplated herein, means the maximum area which may be efficiently and economically drained by the well or wells designated to serve the drilling unit as the unit well, substitute unit well, or alternate unit well. 2015 La. Sess. Law Serv. Act 253 (S.B. 88) (WEST) (emphasis added). The new definition explicitly (a) authorizes the Commissioner to create a drilling unit larger than the area that can be drained by one well, and (b) recognizes the Commissioner of Conservation's authority to approve alternate unit wells, a practice which has been in place since the 1960s but that has been, at times, called into question. Recently, for example, in Gatti v. State, 146 So. 3d this authority of the Commissioner is not without limits, however, as the law possesses certain requirements and proscriptions concerning a cross-unit well that is proposed to have less than five hundred feet of perforated lateral in any unit to be served by such well. 196 (La. 2014), class action plaintiffs made a direct attack on unitization activity in the Haynesville formation in northwest Louisiana by filing suit against the State of Louisiana through the Office of Conservation and Commissioner James H. Welsh, along with eighteen (18) operator defendants. Most Haynesville units are 640 acres in size and the Commissioner has authorized the drilling of one or multiple alternate unit wells for a large number of them. The plaintiffs in Gatti claimed the Haynesville units formed by the Commissioner were invalid because their 640-acre size was larger than the "maximum area which may be efficiently and economically drained by one well," and argued that the Commissioner lacked the authority to approve alternate unit wells. The plaintiffs' claims were dismissed on procedural grounds before the merits of the case could be decided (the Louisiana www.loga.la | 81 http://www.loga.la

Table of Contents for the Digital Edition of LOGA Industry Report - Fall 2015

Chairman’s Corner
President’s Perspective
North Louisiana Notes
Comments from the Commissioner
From the DNR Secretary’s Desk
From the LDWF Secretary’s Desk
Comments from Congress
Legislator Profile: Senator H. Neil Riser
LOUISIANA GUBERNATORIOL RACE QUIET SO FAR
IT'S LOUISIANA'S FAVORITE SEASON- ELECTION SEASON!
LEGISLATIVE LANES TO VICTORY
LOGPAC ELECTION ENDORSEMENTS
THE COTTON VALLEY: A PLAY THAT'S GETTING BETTER ALL THE TIME
Reflections on the Ever-Changing Oil and Gas Industry
CAMERON LNG NEW LIQUEFACTION FACILITIES A WIN-WIN
Court Watch: A Silver Lining in the BP Settlement
LOUISIANA LEGISLATURE PASSES NEW LAW ON DRILLING UNITS
A SUMMER OF ENERGY DISCONTENT IN WASHINGTON DC
WEATHERING THE STROM, FOCUSED ON THE FUTURE
LAGCOE 2015
OPPORTUNITY FOR CONTINUED LAWSUIT REFORM
Leadership Development: EXCELERANT
Workforce Development: Illustrating Industry Support for STEM Education
4th Annual LOGA Sporting Clays
2015 LAGCOE Open Golf Tournament
Oilfield Service Auction Preview
Member Services Spotlight: From Websites to Mobile Apps, Envoc is Making ‘A Better Reality’ for Clients
Petroleum Facts at a Glance
New Members
Index of Advertisers/ Advertisers.com

LOGA Industry Report - Fall 2015

https://www.nxtbook.com/naylor/LOGT/LOGT0318
https://www.nxtbook.com/naylor/LOGT/LOGT0218
https://www.nxtbook.com/naylor/LOGT/LOGT0118
https://www.nxtbook.com/naylor/LOGT/LOGT0317
https://www.nxtbook.com/naylor/LOGT/LOGT0217
https://www.nxtbook.com/naylor/LOGT/LOGT0117
https://www.nxtbook.com/naylor/LOGT/LOGT0316
https://www.nxtbook.com/naylor/LOGT/LOGT0216
https://www.nxtbook.com/naylor/LOGT/LOGT0116
https://www.nxtbook.com/naylor/LOGT/LOGT0315
https://www.nxtbook.com/naylor/LOGT/LOGT0215
https://www.nxtbook.com/naylor/LOGT/LOGT0115
https://www.nxtbook.com/nxtbooks/naylor/LOGT0113
https://www.nxtbook.com/nxtbooks/naylor/LOGT0312
https://www.nxtbook.com/nxtbooks/naylor/LOGT0212
https://www.nxtbook.com/nxtbooks/naylor/LOGT0112
https://www.nxtbook.com/nxtbooks/naylor/LOGT0311
https://www.nxtbook.com/nxtbooks/naylor/LOGT0211
https://www.nxtbook.com/nxtbooks/naylor/LOGT0111
https://www.nxtbook.com/nxtbooks/naylor/LOGT0310
https://www.nxtbook.com/nxtbooks/naylor/LOGT0210
https://www.nxtbook.com/nxtbooks/naylor/LOGT0110
https://www.nxtbook.com/nxtbooks/naylor/LOGT0309
https://www.nxtbook.com/nxtbooks/naylor/LOGT0209
https://www.nxtbook.com/nxtbooks/naylor/LOGT0109
https://www.nxtbook.com/nxtbooks/naylor/LOGT0308
https://www.nxtbookmedia.com