Replies to This Discussion

Permalink Reply by OLD HILLBILLY on July 17, 2009 at 5:04

all the problems they are having with the wells will go away when nat. gas gets back up to $ 10 a cmf think so?

Permalink Reply by fox on July 17, 2009 at 14:10

Amen to that OLd Hillbilly- There is no pipelines in place yet, anyhow. They will get it going in time for the new pipeline. You can bet on it.

Permalink Reply by harley on July 17, 2009 at 8:01

I recieved a shut-in check for this well in early June

Permalink Reply by NA on July 17, 2009 at 8:53

If you recieved a shut-in check they havent giving up on it quit yet or atleast want to hold the acreage. Is the Marr well in Section 22, T11N, R15W?

Permalink Reply by Les Bamburg on July 17, 2009 at 9:17

NA, you are correct.

Chesapeake, Marr 22 #H1 Well, Serial #239043, S22-T11N-R15W

Permalink Reply by Lou Lou from LA on July 17, 2009 at 9:37

Les what the heck is a shut-in check?

Permalink Reply by NA on July 17, 2009 at 10:05

http://74.6.239.67/search/cache?ei=UTF-8&p=what+is+a+shut+in+pa...

Or the short version is it allows them to hold their leases with out the well producing in paying quanities. I quoted that from the paper. Keep in mind though Shut-in royalty payments are usually not much per acre.

Permalink Reply by Lou Lou from LA on July 17, 2009 at 10:17

Thanks NA Is it paid to all lease holders or is this something that has to be added to the lease?

Permalink Reply by NA on July 17, 2009 at 17:10

Every lessor will be paid a shutin royalty. If they aren't then owner of the lease which is Chesapeake will loose the lease. The shutin royalty clause will be found in the lease after the habendum clause which is where the term is found. A clue to help you find it is the following words pay directly to lessor at lessors bank or home adress. This will probably be found on the first page of the lease near the middle. Sometimes however lessors will change the amount per acre or the amount of time the lease can be held by shutin royalty. This is usually found on the exhibit a or on an addendum.

Hope this helps

Hope this helps and please excuse my typing I am using a new cell phone.

Permalink Reply by Lou Lou from LA on July 18, 2009 at 3:59

Thanks again NA for your comments

Permalink Reply by J B Nabors on August 1, 2009 at 4:39

I think you will find that "Shut-In" royalty payments are entirely contingent upon what you specified in your lease. And if you signed the lease the company offered, shut-in payments will be negligible. However, when you sign the lease, you can STIPULATE what the shut-in payments will be. For example: "$50 per acre per month" -- but that is negotiable.

Permalink Reply by Greedy Landowner on July 17, 2009 at 8:49

So they gave up on it?

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