In the state of Texas, how long must a well (oil or gas) be classified as “shut-in” before the land upon which it is located becomes free to lease again? Thanks for any help.
Mike:
I believe that the lease wording will hold the answer to your question. Check the terms of the lease in regards to “shut in” clauses.
If your lease does not have a term limit for the length of time your well can be shut in, the operator can hold it forever as long as the shut-in payments are paid in an acceptable timeframe. There are many leases out there that set the shut-in payment as $1 per mineral acre per year.