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landownerPermalink Reply by Spring Branch,mineral owner on February 14, 2015 at 7:32

It would seem that a well would first have to be turned to sales and producing before "shut-in" language would apply.

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Oil & Gas ProPermalink Reply by William Howard Pritchartt on February 14, 2015 at 9:09

Oncea well is completed the operator opens the chocke to either flare the gas prodced or flows the oil into a holding tank gauging the rate of production to file a potential test report to the state reulatory agency.  The agency then determines a daily allowabe limit to produce the well.  If gas is the product and without the ability to transport the gas via pipleline the shut-in provision is a tool for mututal benefit to both royalty owner and the operator.

I am not sure what you mean when stating a well "turned into sales."

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on February 14, 2015 at 9:21

William, "turned to sales" is an industry term used in reports to the Office of Conservation.  It is the date that the gaseous and/or liquid hydrocarbons are introduced into a pipeline to be transported to an end user or point of sale  It appears in most of the database well files. 

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Oil & Gas ProPermalink Reply by William Howard Pritchartt on February 14, 2015 at 10:28

Thank you as I know a little about everything but not everything about anything.  Knowledge is power but too much knowledge cn be a dangerous thing to have.

Have not worked in Louisiana since 2009 when I left Shreveport working Desoto Parish.  Appreciate your comment as it is good to know if needed in the future.

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