landowner

Well capable of producing...in paying quantities


This seems (and feels) like a strange question, but apparently it is now fairly common in the HS to complete drilling of a well and hold of on
fracturing until a pipeline is ready or until whenever.

Is an "un-frac'ed" well  a "well capable of producing oil or gaseous
substances in paying quantities"?  How does this affect whether the well
is "shut-in" and if the well (and for how long) can still hold by
production.  If the well sits unfractured for a year or more after the
primary term has expired does this affect HBP?  Is this a loophole for
the lessee?

If this is too complicated legally for a thread, just let me know.  Thanks.

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Replies to This Discussion


Oil & Gas ProPermalink Reply by The_Baron on May 7, 2010 at 4:13
lack of pipeline capacity, but also crappy prices

landownerPermalink Reply by drilltheshale on May 10, 2010 at 10:49
Great discussion, guys (and lady). I'm not sure of the bottom line but it appears that an argument can be made that un-fractured wells are not complete or capable of producing in payable quantities and so could not be considered shut-in, and therefore of themselves would not hold a lease as a shut-in well (with payments) would.

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