Me again! It's easier to get to talk to you through this forum! Hope you don't mind!
Last February, B Company was bring in a well nearby our wells and they told our operator they were fracing and our wells were shut in then they said they were through fracing and our wells were brought online again only to find out that B Company was not through fracing yet - and yes, we do know for a fact it happened, we were told and my sister spoke with the A Company area manager, my question is for knowledge purposes only - we are just thankful the wells are coming up to speed again, but is this a lease negotiable issue? These are my thoughts:
Again, it's all about the learning process - that is why I ask questions - I just want to know if anyone out there has dealt with this and what took place. I'm not looking at this from a legal stand point, but a business one - A Company took a hit and so did all the royalty owners, so I am thinking that if this is a hazard of the business that can and probably does happen quite often, how can the companies cope with their losses, and if they do recover their losses, does that mean that the royalty owners will also? If they recoup do they let the royalty owners recoup too? Or how do we know? Is this something that should be written into a lease as well? I look at it this way - if there is a pesky little mole running around like a loose canon doing his little horizontal tunneling thing and he repeatedly keeps digging through the big gopher's horizontal tunneling, wouldn't the gopher eventually get mad at the mole and put some kind of word out that if he doesn't get his engineering routine down a little better, he's going to have to cough up some of the expenses to repair the damages he's done? Really, only so much losses can be tolerated before a process has to be put into place to prevent loss - and if it does, how do the royalty owners protect themselves as well?