Replies to This Discussion

Permalink Reply by herman on October 30, 2009 at 8:38

The lease dates back to the mid 90's and there are two producing shallow wells that produce very little each month. I do not like giving out the exact location over the website. It is family land owned by several heirs. There are over 20 HS wells either being drilled or producing in this township.

• ▶ Reply

Permalink Reply by NUDOG on October 30, 2009 at 8:58

A friend of mine got out of his shallow well lease a year ago. He said that there was a clause or something in the contract that if they didn't produce the well for like 90 days the contract was void.

• ▶ Reply

Permalink Reply by Dion Warr, CPL on October 30, 2009 at 9:10

Nudog:

This would be due to lack of compliance with the continuous production and/or operations provision. Ninety days is a typical maximum term to be able to hold a lease without continuous operations and/or production from a lease tract (although I have seen anything from 90 - 180 consectuive days as a matter of 'usual terms').

• ▶ Reply

Permalink Reply by Dion Warr, CPL on October 30, 2009 at 9:16

Herman:

Another test to be met for lease maintenance would be 'paying quantities', but you would generally have to demonstrate that the operator is not operating a profitable well for a certain period of time (sorry I cannot be more specific, as 'paying quantities' cases are determined on a case-by-case basis from a judicial standpoint).

It would help to know where the property is located and the well(s) that would be purportedly holding the lease so a reasonable determination can be made (even if a non-legal determination, as some of us around here don't bill in the hundreds of dollars per hour). It may not save you a trip to an attorney's office, but you don't have to pay for 'marginal non-legal advice' here, either.

• ▶ Reply

• ‹ Previous
• 1
• 2
• Next ›
• Page