I have a small WI in some wells that have not produced in years.Some are IA,AB,or plugged.
Still getting JIB's on some of these.What is the best exit here?
Bigger and better wells have taken over and am getting ORRI on those.
These are in Wyoming and North Dakota.Thank you.
Are you subject to a joint operating agreement? If so, typically, a party may propose to plug a well, but if a party does not agree, then he can take over your interest, and pay the value, less estimated plugging costs.
But, be careful, that you don't end up giving away your rights to your orris.
To clarify:I had a lease of 90 acres and sold to Company A for cash and ORRI.The older wellhead was operated by Company B and was not included in the sale.So I am being billed by Company B for my WI in the older IA wellhead maintenance that was not included in the sale.
On another situation both the the IA'S and the newer profitable wells are operated by same company.There I am billed for my original WI in the old wells and an ORRI in the new wells.
I guess when I made these newer deals , I should have made these older wellheads part of the package..
I was not the landowner,but inherited the leased acreage.
Even though you inherited the working interest, your father, mother, grandparent are probably subject to a joint operating agreement. To put it another way, under what basis does the operator have the right to bill you other than a contract of which you are subject to.
Ask the operator for a copy of any joint operating agreement.
Thank you Mr. Dowd. I will start there.