A property is leased by oil company XYZ. This property is composed if 150 acres. 100 acres is in one pool (unit) and 50 acres is in another pool. There is one well in each pool, but the well on the pool with 100 acres has been shut down an abandoned. There has been no propduction for 18 months and company XYZ has removed all equipment and property from the well site.
There has been no communication from company XYZ and no shut-in royalty has been received. This is a material breach of the lease.
Is the lease still valid because the well on the 50 acres (in another pool) is still producing?