Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on January 20, 2014 at 7:08

A producing well maintains the lease however the specifics of the lease could release some depths not being produced if there is a vertical Pugh clause.  We often use the acronym, HBP, which stands for Held By Production.  The leases associated with the producing well you mention would be HBP.

Permalink Reply by Pville on January 20, 2014 at 7:24

Thanks Skip,

    Just to clarify-if land has a producing well, the minerals rights on that land will not be re-leased because they are HBP?

 

   

 

 

Permalink Reply by Skip Peel - Mineral Consultant on January 20, 2014 at 7:31

Without a vertical pugh clause, yes.

Permalink Reply by Pville on January 20, 2014 at 8:49

Thanks for the info.

   Our lease does Have a Pugh Clause. Also, a portion of our acreage is in a section with producing wells and a portion of our lease is outside of that producing section.  I'm assuming the oil company will release the percentage that's not drawing royalties.

Permalink Reply by Skip Peel - Mineral Consultant on January 20, 2014 at 9:00

Don't assume that the lessee will record a release of the depths or surface acreage not HBP.  You need to send a certified letter noticing the lessee that the primary term of the lease has expired and the terms governing release of development rights is now in force.  There are two types of lease clauses generally called Pugh.  One is a horizontal Pugh which releases the mineral rights of surface acres not included in a producing unit.  The other is a vertical Pugh which releases certain defined depths under acreage that is HBP.

Permalink Reply by Skip Peel - Mineral Consultant on January 26, 2014 at 2:47

Trinidad Drilling Rig #124 reports 42 days drilling ahead, 1/24/14.

Permalink Reply by Bernell McGehee on January 26, 2014 at 4:29

I'm told they were at 15,000' Friday and drilling without issues.

Permalink Reply by Skip Peel - Mineral Consultant on February 1, 2014 at 5:21

Trinidad Drilling Rig #124 reports 49 days drilling ahead, 1/31/14.

Permalink Reply by john wesleypowell on February 7, 2014 at 6:20

What's the news on the Lawson well

Permalink Reply by Bernell McGehee on February 7, 2014 at 6:52

John Wesley,

To my knowledge they have moved or are in the process of moving the rig. to the Pintard site just north of Centreville.

Fracking will be done on the Lawson as soon as it can be scheduled, I'm sure.

Results will likely be known within about10 days after they finish fracking.

Permalink Reply by Skip Peel - Mineral Consultant on February 10, 2014 at 6:24

Trinidad Drilling Rig #124 reports 56 days drilling ahead, 2/7/14.

Permalink Reply by Bernell McGehee on February 10, 2014 at 7:56

They moved late last week to the Pintard in Wilkinson County.

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