No production no money

Continuing the discussion from Operator will not reply re production halt:

I have several gas wells that have been leased by various companys that buy and sell the leases between them selves.All I recieve is a notice that I will be recieving payment from the new guy and it will list the wells they are taking over.A small company called Mc Danial has taken over production of a half dozen producing wells that they acquired from from a larger company but don’t seem to be using them. How can I control who holds the production rights of these wells.

Unless your lease has a “Consent to Assign” clause in it, there’s not much you can do about the Operator changing hands. If there has been no production for a long time you could try and declare the lease terminated due to lack of production. You should check the terms of your lease. Different leases have different provisions, some have minimum yearly royalties. Some require no more than 90 days without payment.

If you believe your lease terms have been violated, you should file an “Affidavit of Non-Production” at the County courthouse and make sure the Operator gets a copy. That should get their attention.

Thanks Steve this gives me a direction to go.We all need to be proactive in these in the management of our holdings.