landowner

Holding tanks at Garrett well

Information on the Garrett well has been thin lately. However, I've noticed that holding tanks have been installed on the southwest side of the well location. These tanks were installed sometime after June 21, 2012. Anyone have an idea as to what's up. It seems like an indication of future production on a well that's shut in for testing.

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landownerPermalink 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).

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landownerPermalink 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


landownerPermalink 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.


landownerPermalink 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.

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