Recovery Costs

Just received a notification from Whiting legal counsel concerning an application to apply recovery costs to any new wells or other authorized wells within Weld County.

I didn't go to law school, but I think the gist of this notification is to start collecting money from the lease holders to recover some of their costs.

Could someone maybe provide a more clear understanding of what this may mean in terms of cost to a lease holder, and if there is any way to push back?


Ken- could you clarify a bit, I'm new to this. What are recovery costs? Future site resoration? I assume lease holder refers to the leasee, not the mineral rights owning leasor. Thanks

That's my question... What are Recovery Costs? We have producing wells in Weld county, and it appears Whiting wants to recover some expenses they have incurred. When I refer to lease holder, I was meaning myself, the person who leased their mineral rights.

I did a bit of reading, it seems recovery costs sometimes refers to money recovered by the oil company from partial owners that have not signed a lease, but where there is a well. To receive royalties, the oil company and rights owner need to come to terms. I'm sure someone out there can set us straight.


I believe this would be from those who were force pooled. I would look up Colorado Oil& Gas Code 34-60-116.