Replies to This Discussion

Permalink Reply by obed w odom on September 6, 2012 at 18:43

Mark, I'm not sure what type of holding tanks you are referring to, but there have been six 500-barrel (?) oil storage tanks at the Garrett site for quite some time. I have an aerial photograph taken April 29, 2012, which shows these 6 tanks (see attachment).

Attachments:

• Garrett well site 1 4-29-12.JPG, 208 KB

Permalink Reply by Steve J Roberson on September 7, 2012 at 3:59

Obed,

 

This may be a dumb question, but if a well is shut in, even if there was production at one time, what happens with royalty. Is there any at all? I'm referring specifically to the Roberson well.

 

Thanks

Permalink Reply by obed w odom on September 7, 2012 at 5:19

Steve, I don't think any royalty is paid while the well is shut in. After the primary term of your lease expires, if the well is still shut in, they may have to make a payment to you to hold the lease, depending on how your lease is written.

Permalink Reply by Steve J Roberson on September 7, 2012 at 5:51

That's what I figured, but I appreciate your knowledge of this so I thought I would ask to verify it. I look at any royalty payment as gravy that I wasn't expecting. So whatever happens will be fine. Have a great weekend.