The Haynesville Shale is a natural gas rich geological formation in northwestern Louisiana, southwestern Arkansas and eastern Texas. The most productive regions include Caddo, Bienville, Bossier, DeSoto, Red River, and Webster parishes in Louisiana and adjacent regions in southwest Arkansas and east Texas.

The Haynesville Shale was originally deposited when much of what is now Texas and Lousiana were covered by shallow seas. Rich organic silts were deposited and, over millions of years, were eventually covered and encapsulated in layers of impermeable rock overburden. Over thousands of years under pressure and heat, the carbon rich deposits produced reservoirs of oil and gas.

The Haynesville play is like a modern-day gold rush...

The Haynesville Shale discovery and development has been described as a modern day gold rush. Some sources have estimated that the Haynesville Shale may be the fourth largest natural gas reserve in the world. Still early in its development, its actual value may not be known for years to come.

“This is an extraordinary time for Louisiana, particularly in north Louisiana, where we are experiencing something akin to a modern day gold rush due to excitement about the Haynesville Shale discovery... 25 of the 38 leases awarded were from Caddo, Red River and Bienville parishes, totaling approximately $34 million in cash payments, and the average bonus per acre for these leases was over $13,400 per acre, while more typical prices in the past for north Louisiana have been around $400 per acre."

Marjorie McKeithen, Louisiana Mineral Board
(full article)

Some experts describe it as one of the richest natural gas reserves ever discovered in the region. But most experts agree that it is too early to tell what its productive output will actually be. The Haynesville Shale is a "tight" formation meaning that the rock is not very porous and so gas is not easily extracted from it. Until recently, the tight shale formation was not considered viable for production of natural gas in commercially viable volumes.

New techniques make Haynesville Shale viable

Vertical wells that drill straight into the ground have been the mainstay of the industry for decades. But the recent developments of hydraulic fracturing and horizontal drilling techniques have made production of natural gas from the Haynesville Shale more viable. Hydraulic fracturing employs high pressure water pumped down into the well to fracture the rock and release more gas. Horizontal drilling methods expose more of the shale and natural or induced fractures to the borehole, thereby allowing the well to produce more natural gas. Drilling likely will shift from the long common vertical wells to more expensive horizontal wells that are more costly to produce but more productive in "tight" formations like the Haynesvill Shale.

Potential Negative Impacts

As landmen representing oil and gas operators overwhelm county courthouses in the region, and landowners sign oil and gas leases then wait for royalties to start pouring in, some are concerned about the potential for negative impacts to the environment, their property values, and the community as a whole.

Some are already predicting that land values in the city could fall, and that homeowners should expect reductions in the value of their homes for drilling activity that may be, quite literally, in their backyards. Truck and heavy equipment traffic have already increased dramatically in some communities, and noise levels from the rigs are a nuisance to some that is barely tolerable.

There is also the possibility of environmental damage from oil and gas drilling operations. For example, it can take millions of gallons of water to drill and finish a well using hydraulic fracturing techniques. Worse yet, the byproduct which is often full of salt, hydrocarbons and fracturing fluids, has to be disposed of somewhere. The most popular method in use today is, unfortunately, another well called an "injection well" into which the saltwater is injected for disposal. The process can lead to unintended consequences including surface and water contamination. Already, one Texas community has had to fight for clean drinking water after a saltwater injection well poisoned the community's underground water supply.

Contact an Oil and Gas Attorney

If you own mineral interests in the Haynesville Shale region, you may already have been approached by landmen wanting to negotiate oil and gas leases with you. You owe it to yourself to be fully informed of the many issues that should be addressed to maximize your potential revenues, and to protect your property and interests. Contact an experienced oil and gas attorney to learn more about your options.