No royalties paid, no operator contact

When an operator buys out another operator’s producing leases, is the new operator required to:

  1. Re-commence production on producing
    leases held by the former operator
    within a specified time period?
  2. Contact royalty owners with new division
  3. Release leases if the new operator elects
    to shut in producing wells already HBP?

When our leases changed hands we did receive new division orders from the new company. Production has never stopped and the new operators continued to pay royalties. Can't comment on shut in wells since ours continue to produce but sure someone else can tell you about that. I do seem to remember that leases time out if wells are shut but you might check Oklahoma law on that. Check the OCC online.

Also check your least for any clauses that address shut in wells.