Replies to This Discussion

Permalink Reply by adubu on April 24, 2011 at 5:39

SP--- this confirm what some has said before you can frac and shut in a shale well without harm not like some sand and lime formations if shut in will likely lose the the well.

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Permalink Reply by Les Bamburg on April 24, 2011 at 10:11

Adubu, most gas wells can be shut-in if needed without losing the well.

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Permalink Reply by BirdDawg, plain ole' idiot on April 25, 2011 at 16:35

Les,

I have been a WI owner in three different wells that were shut in after fracing. (sand wells).

Every one was dead , I mean dead, when they tried to bring them back online. Never made the first dime on any of them. I guess it was operator problems. Swab, swab, swab. Nothing ever got them back up to their IP.

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Permalink Reply by Les Bamburg on April 24, 2011 at 10:10

SB, it could also be related to downstream treating facilities also.  Any of the three reasons would seem possible.

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Permalink Reply by Spring Branch,mineral owner on April 24, 2011 at 11:07

Depending on terms of the lease, it would seem that "shut in awaiting better price" might not be allowed.

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Permalink Reply by Les Bamburg on April 24, 2011 at 11:46

SB, I agree - price is not allowed under lease agreement for avoiding a lease expiration.  My reference was only related to the State reporting. 

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Permalink Reply by Spring Branch,mineral owner on April 24, 2011 at 12:11

Understand, Les.  Thank you as usual.

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Permalink Reply by adubu on April 24, 2011 at 12:27

they can pay you shut-in royalties for a number of years can they not to continue the  lease assuming this is first well and no other well are HBP your lease.

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Permalink Reply by Les Bamburg on April 24, 2011 at 14:20

Adubu, shut-in royalties are only applicable when waiting for a pipeline to be installed (ie lack of marketing facilities).  "Lack of market" is no longer applicable in regard to the US natural gas market since you can always sell the gas at some price.  

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Permalink Reply by adubu on April 24, 2011 at 14:59

Les B--- It's amassing the reasons the operator can come up with to keep it shut in and pay a few dollars a acre each year for a few years. # one-- they simply do not construct pipeline to flow it to market until they desire

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Permalink Reply by Two Dogs, Pirate on April 24, 2011 at 13:09

SB I have no idea what the leases read and am having trouble opening them from the DeSoto web site. Market could be a condition. What if CHK owns the pipeline and is trying to scalp them? I ran up on a deal in Sabine Parish where the owner of the pipeline wanted to charge us $1.50 a thousand to run the gas for just a few miles. If it would be me I would want my Lessee to make the best deal on my part. You only have "X" amount of product under the ground so why take a screwing.

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Permalink Reply by Henry on April 24, 2011 at 14:04

What, CHK trying to scalp someone?  Say it ain't so!

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