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Permalink Reply by Greedy Landowner on November 28, 2012 at 12:22

In short, no there isn't a way to force them to do anything with the well or the lease. The lease ia held as long as the well produces in paying quantities. With gas prices the way that they are operators have no reason to invest in recompletion right now.

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Permalink Reply by Juss Sayyin on November 28, 2012 at 14:19

Much obliged

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Permalink Reply by Jimburgess on November 29, 2012 at 3:38

Greedy Landowner........"well producing in paying quantities"..........Why is that not defined

more clearly?????? I have just discovered that I have a 30 acre tract in Union Parish that

is hbp for years for $12 per year, thisinterest sold to another oil company, and no payment

made in over a year but there is a meter attached to the wellhead (?) identifying the well

and supposedly measuring production.  Is this well producing in paying quantities or is

this typical of an oil company taking advantage of an interpretation of "well producing in

paying quantities"?...Jim Burgess

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Permalink Reply by dbob on November 29, 2012 at 3:49

You'll need to look at the terms of the lease, particularly for vertical and/or horizontal pugh clauses that might give you an "out" on at least some formations and/or areas. 

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Permalink Reply by Jimburgess on November 29, 2012 at 4:00

dbob.........I leased this tract in 1980......32 years ago......paid good for first few years but

then went to nothing/nominal annual payments.  It seems to me that it is inequitable and

somewhat unfair for a company to maintain control  with pennies.  I wonder if a good

o and g atty, could get this tract released in a court of equity.

Are you saying that maybe the oil company could only hold production for depth that is being produced and could release the other zones.  This is a shallow well in Marion o and g  field.

Thanks for your response.  .....Jim B.

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Permalink Reply by Andrew on December 5, 2012 at 14:47

Jim,

I would take a copy of your lease and the production data from the last 32 years to an attorney for consultation. There are minimum legal standards a company has to meet to hold a lease, though they are not substantial hurdles for the company under most older leases.

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