landowner

Lien on non producing well

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 

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on November 24, 2018 at 6:47

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. 


landownerPermalink Reply by adubu on November 24, 2018 at 8:34

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 


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on November 24, 2018 at 8:37

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.


landownerPermalink Reply by adubu on November 24, 2018 at 8:37

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 


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on November 24, 2018 at 9:07

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.


landownerPermalink Reply by adubu on November 24, 2018 at 9:17

Thanks for your thoughts


landownerPermalink Reply by casingpoint on March 5, 2019 at 10:18

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.

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