Replies to This Discussion

Permalink Reply by Judy Smith on November 25, 2014 at 13:40

Thank you,Skip!  yes patience is a virtue!   At least I can find the info from here. Many thanks

Permalink Reply by Judy Smith on November 24, 2014 at 12:51

Skip,it is is what it is on this well

Permalink Reply by Judy Smith on November 24, 2014 at 14:47

Skip. thank you for your input!

Permalink Reply by Joe Aldridge on November 25, 2014 at 0:53

Judy,

Just a little comment to clear up something. It looks like everybody is talking about leases being held by production (HBP). The leases can be also be held by activity. That is determined by the language in the lease. So leases can be held by means other than HBP. I've heard of cases where a bulldozer on site will hold leases while other leases demand that a well be spudded in with a rig capable of drilling to a productive formation.

Permalink Reply by Skip Peel - Mineral Consultant on November 25, 2014 at 2:27

Joe's correct.  HBP is typically a lengthy period of time unless something unexpected happens to cut off production.  Operations can keep leases in force for relatively short periods of time under an active well permit.  Operations can be that bulldozer preparing a drill site.  Operations can also cover the period that a well pad sits idle between being drilled and being completed (fracked).  Leases may also be held in force by a standard shut-in clause that allows for a well which has been, or is considered, productive by a shut-in payment(s). 

Permalink Reply by Judy Smith on November 26, 2014 at 13:32

Joe, Am i still here??

Permalink Reply by Judy Smith on November 26, 2014 at 13:34

Skip, sorry and thank you for your input

Permalink Reply by Skip Peel - Mineral Consultant on November 26, 2014 at 13:47

Who's corrupt?  And for what?

Permalink Reply by Judy Smith on November 26, 2014 at 14:04

the oil companies.

Permalink Reply by Two Dogs, Pirate on November 26, 2014 at 14:48

Outlaw oil companies are few and far between but they are out there, like CHK, and they tend to give all the good companies a bad name. Just a simple Google search can tell a lot about who is good and who is bad.

Permalink Reply by Skip Peel - Mineral Consultant on November 26, 2014 at 15:21

Judy, If you agree to a lease that contains a clause allowing operations to hold a lease, that's not corrupt.  Those who enter into leases without reading/understanding them have no room to complain. 

Permalink Reply by Judy Smith on November 27, 2014 at 7:23

Sorry, Skip, for the comment.  I was out of line.  Hope you enjoy your Thanksgiving!

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