Old well lease transfer to new wells

Texas Mineral Rights Leon County, TX
1

We have some older vertical wells in Leon county with operator A that are not producing very much at the moment. We just receive a check that basically said they are releasing any remaining funds for the wells but that was all the information included. The wells have been producing a little but did notice the June production for all older wells was zero. In addition, we noticed that another company, operator B, is currently going to drill 2 new horizontal wells in the same abstract. Basically right beneath our old wells. After researching on the TRRC site we noticed that the pooling information for the new wells was just copied from the old wells.

My questions are:

  1. Would this mean the wells are being shut-in?
  2. Is the original/old lease and/or wells being transferred or sold to the new company?
  3. Should the operators have contacted us or should we contact them?
  4. Other?

Thanks so much.

2
  1. No.
  2. Probably but the wells can be reserved by severing the depths.
  3. Neither.
  4. Enjoy the royalties from the horizontal well(s).
2 Likes
3

Thanks for the replay. Should we be receiving new leases for the new wells?

4

If your leases didn’t have a depth severance below the depths of the producing wells (or however it may be phrased) the new deeper wells will be covered by your lease the original wells were drilled under. If your lease has a depth severance, you can expect a new lease. I remember you stating that your lease is listed on the P-12 for the deep wells, so that tells me that you’re already covered by a pooling clause by virtue of an existing lease. They’re certainly expecting to pool you.

5

Also, if your interests are covered under a lease recorded at Vol 1496, Pg. 675, the deep rights to this lease were assigned to Comstock.