Replies to This Discussion

Permalink Reply by adubu on November 29, 2011 at 9:19

Ben--- Found answer after talking with operator ----they have 90 days, but they will most likely plan to just P&A by that time.

Permalink Reply by Ben Elmore on November 30, 2011 at 8:40

It depends on what the lease says.  Sounds like it contains a 90 day cessation of operations clause and a 90 day shut-in well provision, which means they must pay shut-in royalty within 90 days after it is shut-in for it to be considered "constructive production" to hold the lease.  But since they plan to P&A the well before the 90th day, they don't owe you shut-in royalties.  Question then is what is holding the lease? Is there another well?  Are they conducting any other operations?  Is there a Pugh clause?

Permalink Reply by adubu on December 1, 2011 at 8:56

only this one well ---so lease will expire all depths in 90 days --no pugh clause if so deep rights would already have expired so this is N/A-they have no plans for conducting any other operations--- other question now-- do they have any deadline by RRC to plug well since they will offically abandon well in 90 days? I assume they have to return pad site as close as can to it natural sitting as was before pad site build? What time frame to they have to complete it?

Permalink Reply by Ben Elmore on December 1, 2011 at 9:21

Check the lease, because it may have a clause regarding timing of P&A and removal of fixtures, etc...  Under RRC rule 3.14, they have 1 year after abandonment to plug the well.  Here is a link to the rule:  http://info.sos.state.tx.us/pls/pub/readtac$ext.TacPage?sl=T&ap...

They can ask for an extension under Rule 3.15.

 

Permalink Reply by adubu on December 1, 2011 at 9:56

thanks for info

--- Hope you have Merry Christmas

Permalink Reply by adubu on May 28, 2012 at 6:00

Ben--- have released my acreage in the unit with XTO---$1200/20% royalty free---:)-- they will drill a Bossier shale by 3rd year of lease I am sure.

Permalink Reply by Ben Elmore on May 29, 2012 at 2:12

very nice.

Permalink Reply by Alvin T. Kmiec on June 9, 2012 at 18:41

It would also be good to check and see if the well has been unitizatize. If so they can hold it unit ever drop is gone. Here is something to check on about unitization.  http://library.findlaw.com/2003/Jan/30/132512.html

Permalink Reply by Skip Peel - Mineral Consultant on June 10, 2012 at 1:49

And if the well is indeed a unit well, "they" will have to pay the mineral owner's proportionate share of production down to that last drop.

Permalink Reply by adubu on June 10, 2012 at 15:23

Skip--- see my post of May 28 :) have released since CHK lease terminated after 90 days of no activity

Permalink Reply by Skip Peel - Mineral Consultant on June 10, 2012 at 15:57

My comment was in reply to Alvin's above.

Permalink Reply by Alvin T. Kmiec on June 10, 2012 at 16:31

Sorry I miss that post. Glad they terminated it. Some companies will hold on to it so they can go back and drill new well under the same lease. We have some wells on our place that aren't in production anymore, but are in a unit. Back when these wells were drilled they was given an 1/8 and now I hear 1/4-1/5 interest.

 

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