Replies to This Discussion

Permalink Reply by adubu on January 10, 2010 at 8:05

Are your minerals leased in the unit? If yes and the well is "shut in" refer to your lease to see how shut in royalty is handled and paid. Again if you are in the unit and have not received communication from the operator you should contact them for information. You can also call the Texas RRC and check their data on the well.

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Permalink Reply by Bill R on January 10, 2010 at 8:22

Adubu - Yes, they leased our rights in the unit and I have read what they have written within the contract lease. However, after multiple correspondence to Atoka/HSP in regard to it, I have never received a response.
As for the information I was trying to find out, it has been provided by one of the members of GHS and explains everything I needed to know. Thank you for the information you provided.

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Permalink Reply by shelbyco on January 10, 2010 at 8:25

I own a small mineral interest in a tract that is adjacent to this unit. I am interested in what you are able to find out, if anything. I have not heard anything about the quality of the well.

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Permalink Reply by Bill R on January 10, 2010 at 9:32

RCC Gas I.D. # 244897

Written on form G-1
"Solomon #1 is a shut in gas well that tested 384 MCF/day - Operator continues to explore for gas sales outlet"
"Unsuccessful - well dead"

Pretty well summed it up and told me what I needed to know...
Since these details were sent to me and not posted, I will not post details of where or whom I received this information (a matter of trust and knowledge that 'Big Brothers' do monitor this site).

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Permalink Reply by Pud Puller on January 10, 2010 at 11:02

Hmm, the above statements appear to be contradictory. If the well is truly capable of producing 384 MCF a day I would not consider it to be "Unsuccessful well-dead". I think you need a clarafication direct from the operator as to what they intend to do with the well as to your leasehold.

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Permalink Reply by Bill R on January 10, 2010 at 12:07

I would love 'anything' from the operator... but we have heard nothing from them since the initial lease agreement... I am to the point that I am wondering if they are even in business anymore... none of my other family members have had any luck either.

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Permalink Reply by adubu on January 10, 2010 at 11:39

looking on the RRC map there may not be a pipeline close to this well and the cost to construct same for marginal wells is not financial sound to do so they could in end plug the well and let the lease expire.

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Permalink Reply by Bill R on January 10, 2010 at 12:11

That is what I am assuming too from the information I have read, but cannot find out anything from the operator themselves. I thank all of you for your input.

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Permalink Reply by Bill R on July 1, 2013 at 12:09

Shelbyco - have you ever heard anything additional on this well and are you receiving the 'Shut in' payment?

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Permalink Reply by Bill R on July 1, 2013 at 12:08

Well, I hate to beat a 'Dead Horse'.... but does anyone have information on this well or operator? Every year since 2008 each of the Heirs receive a check for $1 via Certified Registeed mail in late May or early June for our share of the 'shut in' Solomon well 419-31244.

Is it common for a well to sit in this 'shut in' status for so long without paying? This is the only well we have had like this and driving me a little crazy, especially since it cost $2 to process the $1 checks that they send us. The lease itself has long since expired, yet I am told that as long as they send this token payment, Atoka can hold the property for themselves. If this is true, how long do them normally do this?

I have attempted to contact Atoka, but they do not return phone calls and refuse to except the Certified letters that I have sent to them (returned by Postal Service as 'denied by receiver' stamped on them).

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Permalink Reply by Skip Peel - Mineral Consultant on July 1, 2013 at 13:09

Bill, your lease should have a clause stating the terms for shut in payments.  Standard forms often limit the ability to hold a lease in force through shut in payments to 2 years.  That would be 2 years past the expiration of the primary lease term.

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Permalink Reply by Bill R on July 1, 2013 at 14:28

Skip, the original lease expired in early 2010 and has no mention within the terms of the lease contract regarding a shut in clause... guess I will need to contact a Lawyer at some point... that or just keep collecting my $1 a year.

Thank you for your reply...

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