Questions Regarding Lipscomb Cty, TX

I was contacted by a broker regarding mineral interests in Lipscomb Cty, TX…sections 942 and 995. He said sec 942 is not leased. However, after speaking with a royalty relations man who works for the operator which last paid revenue in Aug 2020 I found out that a temporarily abandoned well is sitting in the middle of sec 942. The deed has the two tracts combined for some odd reason. Any thoughts on what to do next? TIA

If the well you are talking about in Section 942 is the Shutterly #2 operated by Remora Operaing, the last production from it reported to RRC was in October, 2021.

It was producing very little before that but apparently hasn’t been plugged. Unless the operator has been able to keep the leases in that section active through shut-in royalty payments it seems like they would have expired by now.

Is that Ramora Shutterly well what you were receiving royalties on until August 2020? The last Shutterly wells that were producing in Section 995 appear to have been plugged in 2010.

There are only 2 Shutterly wells (#1 and #2) as far as my records indicate. It was my impression that both wells were in sec 995 but according to a royalty relations rep with Atlas, which took over Remora, the Shutterly #2 well is actually in Sec 942. I remain confused as to whether either or both of these properties can be leased at this point. Both sections 942 and 995 are within the same deed and I’m not sure why that is the case. I appreciate any feedback on this issue. TIA.

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