Replies to This Discussion

Permalink Reply by The_Baron on December 2, 2009 at 10:58

the costs of the constructing the SWD are not relevant.

We use flow lines. The lines come in from multiple wells.

If I was going to truck it, I wouldn't bother with my own SWD.

The well cost very little, It was a conversion of a depleted well.

Permalink Reply by The_Baron on December 2, 2009 at 10:51

In the end, it all depends on the individual situation, if the operator can squeeze out a profit, even if you think its too small, the well is producing in paying quanities.

• ▶ Reply

Permalink Reply by Shakira on December 4, 2009 at 3:12

absent a well-drafted clause in the mineral lease otherwise, squeezing a dime is PPQ.

Permalink Reply by The_Baron on December 2, 2009 at 10:46

In a standard lease, there is no fiduciary responsibility to the lesor.

From the mineral code:

§122. Lessee's obligation to act as reasonably prudent operator

A mineral lessee is not under a fiduciary obligation to his lessor, but he is bound to perform the contract in good faith and to develop and operate the property leased as a reasonably prudent operator for the mutual benefit of himself and his lessor. Parties may stipulate what shall constitute reasonably prudent conduct on the part of the lessee.

Acts 1974, No. 50, §122, eff. Jan. 1, 1975.

• ▶ Reply

Permalink Reply by The_Baron on December 2, 2009 at 10:48

If your lease does not state what paying quantities are, you are out of luck.

• ▶ Reply

Permalink Reply by Spring Branch,mineral owner on December 2, 2009 at 10:50

You are probably right. Otherwise I would take action. What do pumpers make these days???

• ▶ Reply

Permalink Reply by insomniacnla on December 2, 2009 at 13:39

Pumper hired by Exco late last fall, hourly rate to start was $17.50 per hour, included benefits of health insurance, paid holidays (or double time if holiday worked), 401k

He had NO previous experience whatsoever in the oil and gas industry, his wife and kids were pleased

Permalink Reply by The_Baron on December 3, 2009 at 7:47

Most Pumpers are paid as contract employees. Especially those working for smaller companies. We will pay depending on the number and proximity of the wells the pumper is responsible for.

For example we would pay by field - $500 for one well, $800/mo for two wells, and so on. But it just depends on how many pumpers are availble in an area, or even how much work is involved with a well.

We tend to pay extra for extra work, for example, if the well goes down and the pumper spends extra time overseeing work, then we will compensate for his time.

• ‹ Previous
• 1
• 2
• Next ›
• Page