Been dealing on and off with CHk for about a year now trying to get them to do something with old well and lease they hold on my inherited minerals from 40's... Got a email today from senior land man that they are going to plug and abandon well in next 60-90 days... Which really surprised heck out of me because of active leasing going on in area still... So what's options out there for me??? What do I need to watch out for from chk in next 90 days till this is done???
Thanks
Robert, I think there is nothing you need do. CHK probably need not inform you of the plugging of the well unless the duty to do so is spelled out in your lease. I would probably check with the state after they have time to plug the well to make sure that it actually has happened. There could be wording in the continuing operations clause that could arguably hold your lease for a short time more but after that passes with no new work being done you should be free to lease again.
Thanks… I received another email after posting and this well is already placed on the p&a list, which is good for me as there are a couple smaller active companies that are active in area… It’s funny all this is a result of me pulling my grandfathers will and having a simple question… About how much I actually own… Hopefully can get this done and find someone in area that will actively punch a hole…
If the acreage was originally leased in the 1940s, you might be one of the lucky ones from that time period that actually gets to lease again. That happens to very few who have had production this long.
I'm wondering if there might be other production on this acreage that might prevent you from releasing. Also, You might check the orginal lease for a depth clause.
R.T. I am hoping so… I luckily live close to land and drive by weekly… Still several active companies in area… Just mainly smaller type operators…
Larry… No other act
Larry… No other active wells to keep a held by production…
If this works out know I am one of the lucky ones… Cause old lease was bad by today’s standards.,
it also may depend on whether you are in a unit. Some pooling clauses say that any production in the unit holds your lease by production.
Contract is a 640acre unit… This is only well ever drilled in section… It’s been a very low producing well with lots water for years… Producing less than 60mcf a day for several years… I had photo the pumping unit reguraly since July and know the well hadn’t been pumped in years according to operator… Overall I glad about this on several levels, one I get chance to release at today’s market, 2nd If I don’t release then I just cut way down on traffic through land and 3rd I have chance to find someone to lease to knowing they actually go after minerals…
You need to read your lease. They have probably lost the lease due to none production. Some leases require the operator to pay a shut in royalty. You need to break the lease, if you can, and write a new one if someone wants to produce your property in the future.
Robert Pritchard said:
Contract is a 640acre unit... This is only well ever drilled in section... It's been a very low producing well with lots water for years... Producing less than 60mcf a day for several years... I had photo the pumping unit reguraly since July and know the well hadn't been pumped in years according to operator...
Overall I glad about this on several levels, one I get chance to release at today's market, 2nd If I don't release then I just cut way down on traffic through land and 3rd I have chance to find someone to lease to knowing they actually go after minerals...
Here is link to the original contract signed in 1944…
https://www.dropbox.com/s/dnpp2h7nnjw8f2e/Section%207%20Original%20…
You guys tell me what this new guy is missing please…
Looks like they can extend the lease for $640/yr until they get ready to drill again. Hopefully they will forget to pay.
There seems to be some echoing resonance with "...further deferred for periods successively." and the use of "consecutive" in my shut-in clause.
Yes Amy, this is exactly what you are trying to avoid.
It's remarkable how similar this 79 year old contract compares to one today except I doubt the Lessor would be hooking up his grill, stove, or gas lighting to the casinghead gas supply.