Harrison County well low production
Greetings, folks - new member here.
I have inherited a gas well in the I.N. Fields Survey, Harrison County Texas, just south of Marshall in the Cotton Valley formation. I know very little about how leases and such work, and due to certain familial issues, I was never privy to any of this information until I received notice of an inheritance.
I know that this forum discusses the Haynesville Shale, but maybe someone could offer some enlightenment. The well in question has been producing for a number of years, however in the last couple, production has been such that royalty checks are very few per year and hardly over $25. Smith Resources is a small company that refuses to rework the well (?), and will not release the lease (?).
The well is apparently in a very productive area. Is there a way to force Smith to get off the fence so that the rights could be leased to someone who would rework or drill a new well?
I really don't know the right questions to ask here or even how to ask them. Any help or enlightenment would be greatly appreciated.
Views: 370
Replies to This Discussion
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Permalink Reply by Greedy Landowner on -
In short, no there isn't a way to force them to do anything with the well or the lease. The lease ia held as long as the well produces in paying quantities. With gas prices the way that they are operators have no reason to invest in recompletion right now.
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Permalink Reply by Juss Sayyin on
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Much obliged
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Permalink Reply by Jimburgess on
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Greedy Landowner........"well producing in paying quantities"..........Why is that not defined
more clearly?????? I have just discovered that I have a 30 acre tract in Union Parish that
is hbp for years for $12 per year, thisinterest sold to another oil company, and no payment
made in over a year but there is a meter attached to the wellhead (?) identifying the well
and supposedly measuring production. Is this well producing in paying quantities or is
this typical of an oil company taking advantage of an interpretation of "well producing in
paying quantities"?...Jim Burgess
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Permalink Reply by dbob on -
You'll need to look at the terms of the lease, particularly for vertical and/or horizontal pugh clauses that might give you an "out" on at least some formations and/or areas.
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dbob.........I leased this tract in 1980......32 years ago......paid good for first few years but
then went to nothing/nominal annual payments. It seems to me that it is inequitable and
somewhat unfair for a company to maintain control with pennies. I wonder if a good
o and g atty, could get this tract released in a court of equity.
Are you saying that maybe the oil company could only hold production for depth that is being produced and could release the other zones. This is a shallow well in Marion o and g field.
Thanks for your response. .....Jim B.
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Permalink Reply by Andrew on
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Jim,
I would take a copy of your lease and the production data from the last 32 years to an attorney for consultation. There are minimum legal standards a company has to meet to hold a lease, though they are not substantial hurdles for the company under most older leases.
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