Shelbyco - have you ever heard anything additional on this well and are you receiving the 'Shut in' payment?
Well, I hate to beat a 'Dead Horse'.... but does anyone have information on this well or operator? Every year since 2008 each of the Heirs receive a check for $1 via Certified Registeed mail in late May or early June for our share of the 'shut in' Solomon well 419-31244.
Is it common for a well to sit in this 'shut in' status for so long without paying? This is the only well we have had like this and driving me a little crazy, especially since it cost $2 to process the $1 checks that they send us. The lease itself has long since expired, yet I am told that as long as they send this token payment, Atoka can hold the property for themselves. If this is true, how long do them normally do this?
I have attempted to contact Atoka, but they do not return phone calls and refuse to except the Certified letters that I have sent to them (returned by Postal Service as 'denied by receiver' stamped on them).
Bill, your lease should have a clause stating the terms for shut in payments. Standard forms often limit the ability to hold a lease in force through shut in payments to 2 years. That would be 2 years past the expiration of the primary lease term.
Skip, the original lease expired in early 2010 and has no mention within the terms of the lease contract regarding a shut in clause... guess I will need to contact a Lawyer at some point... that or just keep collecting my $1 a year.
Thank you for your reply...