Oil & Gas Pro

Push to Clear the Books of Chronic Shut-in Wells

Skip recently posted about new efforts to have unit survey plats filed of record.  This effort, currently working its way through the Legislature, addresses the issue of long-term shut-in wells which have not produced in significant amounts of time and the means to expedite P&A activities.

Link here.

Tags: Shut-in, land, legal, legislature, wells

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Oil & Gas ProPermalink Reply by Dion Warr, CPL on March 26, 2018 at 13:27

(Apologies everyone for the prior link snafu.)


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on March 26, 2018 at 13:44

Thanks, Dion.  Is it possible that we are seeing more wide spread interest in compelling common sense compliance from the industry?


Oil & Gas ProPermalink Reply by Dion Warr, CPL on March 26, 2018 at 16:03

Skip:

It is possible - the public appears to have asserted itself such that DNR and other legislators have begun to take notice of certain longstanding issues. Backlog on orphan wells is still a problem which will likely have to wait until a collection mechanism is put into place to facilitate the work necessary and to eliminate some of the more problematic wells and fields.

The other issue is that in areas where lease wells are located, there is no current mechanism requiring the P&A of wells, as contractually all such wells are connected to the lease - literally any well can be brought back online at any time as long as one well continues to operate. The legislation appears to attempt to redress such issues - but the state will likely to continue to be loathe to enforce regulations where such may be in conflict with the law between the parties and/or anything that may impede lessee / operator's rights under the lease.


Oil & Gas ProPermalink Reply by Andrew on April 8, 2018 at 23:59

Plugging orphaned wells will continue to be a challenge for the reasons Dion mentioned. But I think the proposed legislation can make some progress on that front. If an operator has listed a well's status as "Shut in-future utility" for 10 years without doing anything with the well, I think it's only reasonable to require the operator to demonstrate that the well does in fact have some "future utility," or else plug and abandon it. 


Oil & Gas ProPermalink Reply by Dion Warr, CPL on April 25, 2018 at 11:57

Legislative update: SB 377 has cleared the Senate by 32-0 (7 absent) and is currently in committee in the House.  The bill was recently deferred but should be picked up on committee docket next week, per source.


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on April 25, 2018 at 12:23

Thanks, Dion.  Which house committee will consider the bill?  I would encourage GHS members to communicate their support of the legislation to their local representative and the committee members.  I can ensure them that the industry will be lobbying against this bill.


Oil & Gas ProPermalink Reply by Dion Warr, CPL on April 25, 2018 at 12:44

Skip - Natural Resources and Environment.


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on April 25, 2018 at 13:13

Thank you.

Committee Members   

Click names for full Member Information

Bishop, Stuart J.                   

Chairman                   

District   43              

R         

         

Leopold, Christopher J.                   

Vice Chair                   

District   105              

R         

         

Armes, James K.                   

Member                   

District   30              

D         

         

Billiot, Robert E.                   

Member                   

District   83              

D         

         

Brown, Terry R.                   

Member                   

District   22              

I         

         

Connick, Patrick                   

Member                   

District   84              

R         

         

Coussan, Jean-Paul                   

Member                   

District   45              

R         

         

DeVillier, Phillip                   

Member                   

District   41              

R         

         

Foil, Franklin J.                   

Member                   

District   70              

R         

         

Gisclair, Jerry                   

Member                   

District   54              

D         

         

Guinn, John E.                   

Member                   

District   37              

R         

         

Lyons, Rodney                   

Member                   

District   87              

D         

         

Magee, Tanner                   

Member                   

District   53              

R         

         

McFarland, Jack                   

Member                   

District   13              

R         

         

Miguez, Blake                   

Member                   

District   49              

R         

         

Morris, James "Jim"                   

Member                   

District   1              

R         

         

Reynolds, Eugene                   

Member                   

District   10              

D         

         

White, Malinda                   

Member                   

District   75              

D         

         

Zeringue, Jerome                   

Member                   

District   52              

R         

         

Barras, Taylor F.                   

Ex Officio                   

District   48              

R         

         

Leger, Walt III                   

Ex Officio                   

District   91              

D         

         

 

http://house.louisiana.gov/H_Cmtes/NaturalResources.aspx


Oil & Gas ProPermalink Reply by Dion Warr, CPL on April 26, 2018 at 3:12

Wow Jay...  pass the salt!  Lol...

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