what happen to lien if operator abandon well and lease expires then later minerals leased by another operator and reworks abandon well and it’s producing
is old lien valid and claim against new operator or has lien been dismissed and service company have no claim
Dr. Wharton, I think the reason that you have received no comments prior to mine is that this is a question for an experienced O&G attorney. Very few of whom participate on websites such as GHS. Also, I suspect that an informed answer would depend on the state where your abandoned well is located because case law is important in establishing precedent.
Thanks for reply Skip
When I was on this site few years ago I believe there was couple of O&G attorneys that although not absolute legal advise binding since reader of course should see their own lawyer would share their thoughts on questions
Yes, that was the case but I haven't seen any of them post in a long time. If you would care to have a referral to my O&G attorneys, let me know. They practice in Louisiana and all surrounding states including Texas.
This is in Texas
It is my understanding that if lease expires and another operator leases minerals the new operator does not assume prior liabilities
and is free to develop minerals including reworking non producing wells
Sounds like an issue that should have been addressed in the subsequent lease. Or, a decision not to execute the subsequent lease until the lien issue was settled.
Thanks for your thoughts
Beware in Texas, I have heard if you are not leased the operator can produce a well and keep the money.
I have know a lot of Texans over the years and yes, the above could well be true. The reputation of the Texas State Legislature is one big collection of real screwballs.
Google "tamu oil gas lease" for some reading about O&G in Texas.