How long can a operator hold lease after older well is shut-in? Question for Ben or anyone

A James Lime Well in East Texas drilled and produced for 9 years so HBP a 600 acre lease with this one well--- Well made < 150 mmcf of the 9 years and last production about 1500 mcf in month ~50 mcfd --- CHK came in and removed everythink off pad site about 6 weeks ago--leaving only the drill site with pipe with control valve--- I assume well shut-in. This was on a old standard 88 lease I understand but have not seen or read it. How long does operator have in time to notify all royalty owners if well is shut-in? How long in general can they HBP (Shut in) the well? In chance on getting release of lease in nothing done with in 90 days and what required to get them to release the lease ?

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Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on June 11, 2012 at 1:39

Units do not hold leases in force without producing wells or wells which are shut-in and making shut-in payments under the terms of the lease. 

Permalink Reply by Ben Elmore on June 11, 2012 at 4:31

Alvin,

"We have some wells on our place that aren't in production anymore, but are in a unit."  Do you mean to say that your lessee is claiming to hold acreage in that unit with non-producing wells?  That doesn't make sense.  Only way to hold unit acreage/leases is with actual production or constructive production via shut-in payments. 

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