If I buy a well..........
Question #1.
If I purchase a well from another operator, that is already HBP or just sitting there, do I as the new operator have to go to LDC for permit or can I just rework my pre-existing well to HBP at deeper depths ?
Question #2.
If I now own said well, does that now mean that I am basically able to work that area without having to lease any land or to even have be given permission to work the land via a permit through LDC?
Scenario Situation :
I can become the operator in a section/unit without going through LDC. I can bypass permit/leasehold majority ownership problem by buying an existing well. I can now hold most of the early leases with a much cheaper, verticle extension to a pre-existing well, by a far less profitable method which doesnt drain the reservor as well as it should by mineral code standards.
This isnt intended to be flawless. Just looking for some reasons why PHK, or any other operator, would be buying up wells where they may or may not have the majority of current leaseholds.
If I purchase a well from another operator, that is already HBP or just sitting there, do I as the new operator have to go to LDC for permit or can I just rework my pre-existing well to HBP at deeper depths ?
Question #2.
If I now own said well, does that now mean that I am basically able to work that area without having to lease any land or to even have be given permission to work the land via a permit through LDC?
Scenario Situation :
I can become the operator in a section/unit without going through LDC. I can bypass permit/leasehold majority ownership problem by buying an existing well. I can now hold most of the early leases with a much cheaper, verticle extension to a pre-existing well, by a far less profitable method which doesnt drain the reservor as well as it should by mineral code standards.
This isnt intended to be flawless. Just looking for some reasons why PHK, or any other operator, would be buying up wells where they may or may not have the majority of current leaseholds.
Views: 35
Replies to This Discussion
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Permalink Reply by Snake Stewart on
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Hey KB. Hope things are going well for you and yours.
But that permit is just amended to change the operator name, right ? Does anyone ever get turned down in this scenario ?
Would they still need permission to re-work the well via additional permits ?
Thanks
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Permalink Reply by The_Baron on -
To deepen a well you need to file for an amended permit. You also need the have those depths leased, so if those deeper depthjs are no longer covered by the existing leases (because of pugh clauses) or where not conveyed by the lease assignment, new leases are needed if poosible, or the deep right would have to be aquire by the leaseholder.
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Permalink Reply by The_Baron on
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Becoming a new operator for an existing well is easy. You register with the state as an operator, if you are not already one, You fill out a pink card and mail it to LOC with your fee.
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