Falsifying production on Louisiana O&G leases

I have come across a company that has been reporting production on a large unit in Louisiana when in fact there has not been any production for the past year. Obviously this is a poor attempt to hold acreage and forestall their obligation to plug or produce. They are filing small amounts of production when in fact there has been zero for the past year. Wouldn't this be considered a federal criminal conspiracy between operator and purchaser?

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Permalink Reply by jeff on September 2, 2014 at 7:56

Skip,I have sent you a private message.  


Oil & Gas ProPermalink Reply by Edward Peter Miesch on September 6, 2014 at 18:37

Isuspect too that it is possible that they are paying shut in royalty.  However, the check stubs should show volumes of production of both oil and gas.

Argueing about whether there is sufficent production to say that it is commercial or not, is left up to the courts in Texas.  A suit would have to be instigated by the land owner.  The Texas RRC will not involve itself in taking sides on whether a lease is still valid or not.  I have been there and done that.

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