Lease from 2010 was not favorable to lessor and no time limit listed for shut-in. Last production was in 2017 and have received a shut-in payment annually since. Can a shut-in last until the well is closed? What if the shut-in payment isn’t cashed? Can this last indefinitely?
Welcome to the forum. Unfortunately, a shut in clause with no time limits can last indefinitely. I inherited some that have been dragging on for decades. It can be expensive to try (and frequently doomed to fail) to break a lease with that type of clause. If you don’t cash the check, you are probably just missing out on some extra cash.
Thank you for the information and sharing your personal experience.
When signing a new lease, it is important to have a limitation on the number of years shut-in rights can last.
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