Pennsylvania: Active / Non-producing Well- No Division Orders

Pennsylvania Mineral Rights Bradford County, PA
1

It took a long while but we finally have a Lease & Paid Bonus, Problem now is why no Division Order. During lease discussion was told dividends “Might” be out in September 2025. I have

2

Has the well actually been drilled? If you give the name of the well and the location, we can help with the timing. A well may have been drilled but not completed yet. Or the well may not be economic at this time. Wells can be “active” on the rolls but not producing.

3

Sorry hit post some how: Why No Division order? I have been using Pennsylvania sites and I can somewhat follow status but I don’t understand why no further contact or information from Chesapeak. I did a inquiry for production report and this is what I got:

PA, Bradford County, Monroe Twp PERMIT # 015-23948, LINES 106H Unconventional Gas well, Horizontal Well Report period Oct 2025 CHESAPEAKE APPALACHIA LLC OGO # 65420 WELL_STATUS: Active Well Temporarily Not Producing SPUD_DATE: 1/6/2025

How can well be active but “Not Producing” and why know Division Orders

4

Thank you for responding. The well is in Monroe Twp, Bradford County, PA PERMIT # 015-23948, Farm name: LINES 106H, if I have the terms correct my Lease/percentage of land is Unitized and parts of the family land is within 2 different units.

5

@Wilcox Here is a better understanding of your questions.

  1. Why the well can be “Active” but “Temporarily Not Producing.”

Those two terms are not contradictory in PA reporting.

What “Active” means

In PA DEP and production databases, Active usually means:

  • The permit is still valid

  • The well has been drilled and completed (or is capable of completion)

  • The operator has not plugged or abandoned the well

It does NOT mean gas is currently being sold.

What “Temporarily Not Producing (TNP)” means

This status is used when:

  • The well has been drilled and possibly completed

  • But gas is not yet flowing to sales, or

  • It is shut-in for:

    • Midstream delays (no pipeline tie-in yet)

    • Compression not installed

    • Frac flowback incomplete

    • Market timing / curtailment

    • Operational or mechanical reasons

Key point: A well can sit TNP for months or even a year+ and still be considered “active.”

2. Why is there no Division Order yet

No sales = no Division Order

A Division Order is only issued when:

  1. Gas is actually sold, and

  2. Chesapeake is ready to disburse revenue, and

  3. Title review is complete for the producing unit

If the well is:

  • TNP

  • Shut-in

  • Waiting on pipeline connection

There is nothing to divide yet, so no DO is generated.

3. Pennsylvania operators (especially Chesapeake) do this a lot

In PA, operators often:

  • Drill wells far in advance of sales

  • Hold acreage by drilling (HBP strategy)

  • Delay first sales until:

    • Multiple wells can be tied together

    • A larger pad comes online

    • Gas prices or transport capacity improve

I hope this helps you understand a little better. If you’re still wondering why the Petroleum Landman mentioned the division order, I recommend reaching out to Chesapeake Energy for more clarity.

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@Petroleum9202, Thank you for your detailed and the clarity of your response. It did give me a better understanding of the process.

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