I have been waiting over 2 years for my well to go into production. The pipelines have been in for a year. My lease extension is up. They are trying to pay me a shut in royalty. They told me that the well has an application in with the state to start production (allowables??) I was told that 2 months ago and last week. Still no production. Is there a way I can confirm that they really have applied with the state?
Operators are required to file an amended permit to change the name if a well is unitized.
Also, All that is need to justify the paying of shut ins, in most casesas it could depend on your lease, is a succesful well test that indicates the well is capable of producing in paying quanities. It is not nessesary to file for an allowable.
I bet it says that if there is a well capable of producing, they can hold the lease for and additional year by paying a shut in royalty. I would be willig to bet that there is no requirement for operations.
"Capable of producing" is the problem. I was told that the well was soured by the operator fracing too deep into Smackover. They said that they may not be able to produce H2S content way too high. They were going to try an experimental treatment. I have no way of know what is what without seeing if they have applied to produce with the state.
So is there any way to find out if they have applied for a permit to produce?
If they have filed for an allowable, it will be on file with Conservation.
An allowable is not nesessary for a well to be considered capable of producing, unless your lease states otherwise, which it probally does not.
There is no well test on file, therefore there probally is no request for an allowable.
The status is "waiting on pipeline." This tells me that they at least want it to be known that this is a well "capable of producing", but lacks a pipeline. They will more than likely be able to hold this lease with shut-ins.