Replies to This Discussion

Permalink Reply by The_Baron on December 5, 2008 at 4:27

I would call that - Waiting on completion

Permalink Reply by The_Baron on December 8, 2008 at 5:46

I hope your dry-hole is right. My royalty checks aren't as happy.

Permalink Reply by Snake Stewart on December 5, 2008 at 1:22

Reply by KB 20 hours ago
And, I agree with your analysis so long as the well is not capable of future production and truly is a dry hole.

Good morning everybody,
How do I know if the well is capable of future production or if it has been named for future utility ? And how would that affect precription ?
Graysands started a discussion,DRY-HOLE FUTURE UTILITY, that may answer that question for me but I wanted to tag this discussion as well so it didnt get lost in the shuffle. Too much good info from you guys.
Thanks

P.S. Hey Jay, this could be a GEO question too, I think. Jump on in if your feelings aint still bruised from havin' to wait on the landmen.(LOL)

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Permalink Reply by Dion Warr, CPL on December 8, 2008 at 5:20

KB:

Whenever one get concerned about 'what's happening' with a well that is classified as shut-in that has no further entries in the well file, I would always point them to the district office level. Any operation that could possibly constitute good-faith operations to produce or to restore production is going to require a work permit. Those permits are filed at the district level, at the minimum. Some paperwork does not get forwarded to the LOC level, and sometimes paperwork does not get forwarded to the LOC level that should have (although this is pretty rare on the whole).

When we do research for clients, (lease checks, mineral history, etc.) for clients, and we come across these situations, it also helps to have a general outline from the courthouse research to check against. Sometimes a shut-in (FU) well is just a well that should have been plugged at some point earlier, but has never been, and the last operator of record is the party responsible to P&A the well. Sometimes the paperwork in the well file is not up to date and the appropriate Change of Operator form has not been submitted, even though an assignment has been filed of record. With older wells, some of these "Code 33s" simply stay in shut-in limbo (some times many years) until a District representative gets called by a landowner or other interested party to investigate the problem.

In general, you want to find the date of last operations on the well that would constitute an interruption of prescription. So, on preliminary research, you note the existence and status of the shut-in (FU) well, then investigate further depending on how much and in what way(s) the presence of that well may affect your mineral and/or leasehold title. At that point, you want all the facts of record (LOC, District files, courthouse research) before presuming to make a determination. If it's still a gray area, consult with an appropriately licensed attorney specializing in these issues.

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