Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS...
Transcript of Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS...
![Page 1: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/1.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersMineral Geology for Beginners
Bryan S. GrovesGeologist BACKGROUND
![Page 2: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/2.jpg)
Bryan S. GrovesGeologist
Bryan S. Groves, GeologistBACKGROUND
F.Y.I.
• Second generation oil and gas geologist• Over 25 years experience in South Louisiana• Qualified unitization expert witness• Qualified expert witness in court of law• Generate drilling prospects• Interpret 3-D seismic data, computers• Property and cash flow evaluation
![Page 3: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/3.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersMineral Geology for Beginners
Bryan S. GrovesGeologist OVERVIEW
![Page 4: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/4.jpg)
Bryan S. GrovesGeologist
![Page 5: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/5.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOUTLINE
• Oil & Gas Geology
• Oil & Gas Mineral Lease
• Oil & Gas Unitization
• Information - Websites
![Page 6: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/6.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOIL & GAS GEOLOGY
• Oil & Gas Basins of the United States
• Oil & Gas Producing Trends on Gulf Coast
• Oil & Gas Geology 101
![Page 7: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/7.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOIL & GAS BASINS OF THE UNITED STATES
from PennWell maps
![Page 8: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/8.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOIL & GAS BASINS OF THE GULF COAST
from PennWell maps
![Page 9: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/9.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOIL & GAS BASINS OF THE GULF COAST
from PennWell maps
![Page 10: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/10.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOIL & GAS TRENDS OF THE GULF COAST
from PVA
![Page 11: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/11.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersSTRATIGRAPHIC COLUMN
+/- 62 million years ago
+/- 135 million years ago
+/- 5 million years ago
from Geology.com
![Page 12: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/12.jpg)
Bryan S. GrovesGeologist fro
m G
eolo
gy.c
om
![Page 13: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/13.jpg)
Bryan S. GrovesGeologist
Tuscaloosa
Paluxy
Rodessa
Sligo
Hosston
Cotton Valley
Haynesville
Smackover
from Geology.com
![Page 14: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/14.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersMineral Geology for Beginners
Bryan S. GrovesGeologist Terminology
![Page 15: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/15.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersGEOLOGICAL TERMS
• Sand (beach or river)
• Shale (compacted clay)
• Erosion (cutting away rock)
• Deposition (putting down cut-up rock)
• Strata (layers of rock)
• Faults (crack/break in surface)
![Page 16: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/16.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersEROSION IN MOUNTAINS
![Page 17: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/17.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOIL & GAS TRENDS OF THE GULF COAST
Erosion in mountainsCut-up rock carried in river
Sand/clay are deposited
from Lock
![Page 18: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/18.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersEROSION IN MOUNTAINS
from Lock
![Page 19: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/19.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersRIVERS CARRYING SEDIMENT
from Lock
![Page 20: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/20.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersRIVERS CARRYING CUT-UP ROCK
from Lock
![Page 21: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/21.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersRIVERS CARRYING CUT-UP ROCK
from Geology.com
![Page 22: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/22.jpg)
Bryan S. GrovesGeologist
Louisiana
Mineral Geology for BeginnersCUT-UP ROCK DEPOSITION (IN DELTAS)
from Geology.com
![Page 23: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/23.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersSAND / CLAY DEPOSITION IN DELTAS
from Lock
![Page 24: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/24.jpg)
Bryan S. GrovesGeologist
sand / clay deposited
Mineral Geology for BeginnersSAND / CLAY DEPOSITION IN DELTAS
from Lock
![Page 25: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/25.jpg)
Bryan S. GrovesGeologist
sand / clay deposited
Mineral Geology for BeginnersSAND / CLAY DEPOSITION IN DELTAS
from Lock
![Page 26: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/26.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersMineral Geology for Beginners
Bryan S. GrovesGeologist
Faults / TrapsStrata / LayersOil and Gas Pools / Reservoirs
![Page 27: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/27.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOIL & GAS TERMS
• Sand (beach or river)
• Shale (compacted clay)
• Erosion (cutting away rock)
• Deposition (putting down cut-up rock)
• Strata (layers of rock)
• Faults (crack/break in surface)
![Page 28: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/28.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersSTRATA / LAYERS
![Page 29: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/29.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersSTRATA / LAYERS
from Lock
![Page 30: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/30.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersORIGIN OF FAULTS
![Page 31: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/31.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersORIGIN OF FAULTS
from Lock
![Page 32: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/32.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersORIGIN OF FAULTS
from Lock
![Page 33: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/33.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersSTRATA AND FAULTING
CUT-UP ROCK (SEDIMENT)
SAND
SHALE OIL
![Page 34: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/34.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersSTRATA AND FAULTING
![Page 35: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/35.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersWHERE’S THE OIL ! ? !
![Page 36: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/36.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOIL & GAS FLOAT ON WATER
![Page 37: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/37.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersCONVENTIONAL RESERVOIRS, GULF COAST TRENDS
![Page 38: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/38.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersUNCONVENTIONAL RESERVOIRS, RESOURCE PLAYS
from Geology.com
![Page 39: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/39.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersUNCONVENTIONAL RESERVOIRS, RESOURCE PLAYS
after LDNR website
![Page 40: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/40.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersUNCONVENTIONAL RESERVOIRS, RESOURCE PLAYS
![Page 41: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/41.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersSEISMIC DATA
![Page 42: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/42.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersSEISMIC DATA PROFILE (SIDE VIEW)
![Page 43: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/43.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersSEISMIC DATA PROFILE (SIDE VIEW)
from Lock
![Page 44: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/44.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersTHEORY vs. REALITY
from Lock
![Page 45: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/45.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersSEISMIC DATA, FAULT PICKING
![Page 46: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/46.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersMineral Geology for Beginners
Bryan S. GrovesGeologist
MINERAL RIGHTSOGML
![Page 47: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/47.jpg)
Bryan S. GrovesGeologist
Q: What are mineral rights?
A: The term “mineral rights” generally refers to the right to explore and develop property for the production of oil, gas, and other minerals occurring naturally in liquid or gaseous form and to reduce them to possession and ownership.
Ownership of land does not include ownership of such minerals, but the landowner or owner of a mineral servitude has the exclusive right to explore and develop the property for the production of minerals.”.
Mineral Geology for BeginnersOIL AND GAS MINERAL LEASING
after LDNR website
![Page 48: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/48.jpg)
Bryan S. GrovesGeologist
Q: What might happen if an exploration company is interested in leasing the mineral rights on my property ?
A: Typically, a landman offers a per-acre amount to lease the mineral rights and a percentage of royalties from any production that is realized.
Mineral Geology for BeginnersOIL AND GAS MINERAL LEASING
after LDNR website
![Page 49: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/49.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOIL AND GAS MINERAL LEASE FORM
![Page 50: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/50.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOIL AND GAS MINERAL LEASE FORM
Date
Mr. & Mrs. John Landowner (Lessor)
Oil Company (Lessee)
Legal Description of Land
Example:
North Half of Section 23, T6S-R3W
DON'T FORGET THE TERMS!
![Page 51: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/51.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOIL & GAS MINERAL LEASE TERMS
• BONUS (1st year): $ per acre
• RENTAL (2nd & 3rd year): $ per acre
• ROYALTY: 20%, 22.5%, 25%
• Primary Term, 3 years
• Other provisions in optional Exhibit “A”
![Page 52: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/52.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOIL & GAS MINERAL LEASE TERMS
• BONUS (1st year): $ per acre
• RENTAL (2nd & 3rd year): $ per acre
• ROYALTY 20%, 22.5%, 25%
• Primary Term, 3 years
• Other provisions in optional Exhibit “A”
![Page 53: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/53.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersMineral Geology for Beginners
Bryan S. GrovesGeologist UNITIZATION
![Page 54: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/54.jpg)
Bryan S. GrovesGeologist
Q: What is unitization of wells?
A: Unitization of oil and gas reservoirs in the state is a critical activity achieved by industry and state government working together. It is important to mineral rights owners because of the economic gain once a well is produced. At the request of an applicant or operator, an oil or gas unit is established for a sand, a zone, or a shale or formation.
Unitization allows maximal recovery of the resource, prevents drilling unnecessary wells, and protects the rights of the mineral owners.
Mineral Geology for BeginnersOIL AND GAS UNITIZATION
after LDNR website
![Page 55: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/55.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOIL & GAS UNITIZATION EXAMPLE
40 ACRES
640 ACRES IN SECTION
PROSPECT
BIRD’S EYE VIEW
![Page 56: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/56.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOIL & GAS UNITIZATION EXAMPLE
40 ACRES
UNIT160 ACRES
YELLOW TRACT40 ACRES / 160 ACRES =
25% UNIT PARTICIPATION (per the unit)(based on surface acreage in unit)
PROSPECT
![Page 57: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/57.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOIL & GAS MINERAL LEASE TERMS (review)
• BONUS (1st year): $ per acre
• RENTAL (2nd & 3rd year): $ per acre
• ROYALTY: 20%, 22.5%, 25%
• Primary Term, 3 years
• Other provisions in optional Exhibit “A”
![Page 58: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/58.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOIL & GAS MINERAL LEASE TERMS (review)
• BONUS (1st year): $ per acre
• RENTAL (2nd & 3rd year): $ per acre
• ROYALTY: 20%, 22.5%, 25%
• Primary Term, 3 years
• Other provisions in optional Exhibit “A”
![Page 59: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/59.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOIL & GAS UNITIZATION EXAMPLE
40 ACRES
UNIT
160 ACRES
YELLOW TRACT25% UNIT PARTICIPATION (per the unit) X
20% ROYALTY (per the lease) =5% NET INTEREST
![Page 60: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/60.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOIL & GAS UNITIZATION PROCESS
Louisiana Department of Natural Resources, Office of Conservation
• Pre-Application Conference Notice Letter
• Pre-Application Conference (informal meeting to discuss proposed unit plans)
• Application Letter (docketed for hearing)
• Hearing (in Baton Rouge, LA)
• Unit Order signed by Commissioner of Conservation
![Page 61: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/61.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersOIL & GAS UNITIZATION PROCESS
Louisiana Department of Natural Resources, Office of Conservation
• Pre-Application Conference Notice Letter
• Pre-Application Conference (informal meeting to discuss proposed unit plans)
• Application Letter (docketed for hearing)
• Hearing (in Baton Rouge, LA)
• Unit Order signed by Commissioner of Conservation
ENTIRE PROCESS TAKES APPROXIMATELY 90-120 DAYS
![Page 62: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/62.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersMineral Geology for Beginners
Bryan S. GrovesGeologist INFORMATION
![Page 63: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/63.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersINFORMATION - WEBSITES
• LOUISIANA DEPARTMENT OF NATURAL RESOURCES, SONRIS O & G DATABASEhttp://sonris-www.dnr.state.la.us
• ENERGY INFORMATION ADMINISTRATION, U. S. GOVERNMENT O & G DATAhttp://www.eia.doe.gov
• LOUISIANA OIL AND GAS ASSOCIATION, ISSUES AFFECTING LA. O & G INDUSTRYhttp://www.loga.la
• CNN, OIL AND GAS PRICEShttp://money.cnn.com
• BAKER HUGHES, OIL AND GAS DRILLING RIG COUNT INFORMATIONhttp://gis.bakerhughesdirect.com
after LDNR website
![Page 64: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/64.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersSUMMARY
• Oil & Gas Geology
• Oil & Gas Mineral Lease
• Oil & Gas Unitization
• Information - Websites
![Page 65: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/65.jpg)
Bryan S. GrovesGeologist
![Page 66: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/66.jpg)
Bryan S. GrovesGeologist
MR. KEITH HAWKINS
WITH THE
DERIDDER, LA
OFFICE OF THE
L. S. U. AgCenter
Mineral Geology for BeginnersACKNOWLEDGEMENTS
![Page 67: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/67.jpg)
Bryan S. GrovesGeologist
For more information, please contact:
Bryan S. Groves, Geologist
Lafayette, Louisiana
Telephone: 337/233-8032
Email: [email protected]
![Page 68: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/68.jpg)
Bryan S. GrovesGeologist
For more information, please contact:
Bryan S. Groves, Geologist
Lafayette, Louisiana
Telephone: 337/233-8032
Email: [email protected]
![Page 69: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/69.jpg)
Bryan S. GrovesGeologist
![Page 70: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/70.jpg)
Bryan S. GrovesGeologist
![Page 71: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/71.jpg)
Bryan S. GrovesGeologist
Drill here…
…or maybe here…
![Page 72: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/72.jpg)
Bryan S. GrovesGeologist
![Page 73: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/73.jpg)
Bryan S. GrovesGeologist
![Page 74: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/74.jpg)
Bryan S. GrovesGeologist
![Page 75: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/75.jpg)
Bryan S. GrovesGeologist
![Page 76: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/76.jpg)
Bryan S. GrovesGeologist
![Page 77: Mineral Geology for Beginners · Bryan S. Groves Geologist Mineral Geology for Beginners OIL & GAS UNITIZATION PROCESS Louisiana Department of Natural Resources, Office of Conservation](https://reader033.fdocuments.in/reader033/viewer/2022042802/5f42761b3691610b63004c38/html5/thumbnails/77.jpg)
Bryan S. GrovesGeologist
Mineral Geology for BeginnersMineral Geology for Beginners
Bryan S. GrovesGeologist END