Frac Problem

I just learned today that our four producing combo wells have been shut in because another production company, who is fracing their wells in the section next to ours, hit all four of our horizontal lines with their fracing activities. Our drilling company is pulling salt water out but no oil or gas. The pumper told us that sometimes the wells come back, and some times they don’t. What should we expect? Are there any legal actions our production company might take against the other drilling company? Any other information members of this forum can provide will be appreciated. These wells are in Texas.

I think you should look at Buddy Cottens blogs immediately. He has one that addresses your situation. If your operator recovers for losses, they probably would not be bound to share any part of a settlement with you. You should be part of any lawsuit.

Thank you, Mr. Kennedy. Is this the blog topic you were referring to: "HECI Exploration Co. v. Neel, 982 S.W.2d 881 (Tex. 1999)? I just want to make sure I read the right one. Thanks again.

r w kennedy said:

I think you should look at Buddy Cottens blogs immediately. He has one that addresses your situation. If your operator recovers for losses, they probably would not be bound to share any part of a settlement with you. You should be part of any lawsuit.

KD,Yes! That is the one. I was just reading it this morning. I hope forewarned, your situation and that in the blog differ greatly in outcome. I hope your production resumes, but if it doesn’t, I think it would be important for you to be a plaintiff. And even if it does resume, and a suit is filed for any reason, I think you should be a party to it. I’m pleased if my pointing it out was helpful at all. Credit should go to Buddy Cotten.

Thanks again for the quick help. I’ve put out other “feelers” to industry personnel and have contacted my lawyer, just to make sure we’re aren’t late to the party, so to speak. Thanks again so much. I appreciate all the great information this forum provides.

r w kennedy said:

KD,Yes! That is the one. I was just reading it this morning. I hope forewarned, your situation and that in the blog differ greatly in outcome. I hope your production resumes, but if it doesn't, I think it would be important for you to be a plaintiff. And even if it does resume, and a suit is filed for any reason, I think you should be a party to it. I'm pleased if my pointing it out was helpful at all. Credit should go to Buddy Cotten.

Dear KD,


I just saw your post this morning.

Please refer to:

http://www.mineralrightsforum.com/profiles/blogs/is-fracing-tresspass

and it should provide some good information for your attorney,

KD said:
Thanks again for the quick help. I've put out other "feelers" to industry personnel and have contacted my lawyer, just to make sure we're aren't late to the party, so to speak. Thanks again so much. I appreciate all the great information this forum provides.

r w kennedy said:
KD,Yes! That is the one. I was just reading it this morning. I hope forewarned, your situation and that in the blog differ greatly in outcome. I hope your production resumes, but if it doesn't, I think it would be important for you to be a plaintiff. And even if it does resume, and a suit is filed for any reason, I think you should be a party to it. I'm pleased if my pointing it out was helpful at all. Credit should go to Buddy Cotten.

Reservior damage may be the issue here and not fracking. I presume damage to reserviors is frowned upon. I think if the new well caused the existing wells, that had been producing gas, to become excellent producers of salt water due to the radius of their fractures, the new well or wells may also be an excellent source of salt water. Could this be an indication of reservior damage?

Bob,

If you read the case, it talks specifically about the operator following RRC Rules. The lower courts were divided, but the Supreme Court took the position that if the damage was caused by following RRC rules, no negligence, etc was attached.

In the Neel case, the operator overproduced the well, not following RRC allowables and damaged the reservoir, which brought forth the initial suit and the settlement.

I do not know what the issue is except, from what was said, there appears to be communication between the wells. The rest is conjecture.

If I were the Operator, I would shut in my production immediately and contact the other operator so that they can get their own frac water back. Then I would pull them hard and compete for the reserves. But that is best left for petroleum engineers to figure out.

However, the royalty owner should be represented in any case or settlement.

Thanks for explaining that, Buddy.