Is there legal precedent for a mineral owner to take legal action against an oil company who operates a deep well drilled 61 years ago but has not taken the initiative to develop the minerals up the hole? The present operator has operated the well for approximately 51 years. Well is marginally economical but does not a prudent operator have a responsibility to develop and market the minerals?
Matt- You would have a legitimate argument if you can prove that the “up hole” zones are being drained by offset production. Otherwise, the operator can say they are being prudent by draining the last bit of hydrocarbons from the current zone that they would otherwise lose if they “move up hole”.
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I have a similar situation. The well barely pays the vat. The unit contiguous is identical in nearly every aspect. All 4 bottom holes, their 3 my ! are in a quarter mile radius. It took his operator Reichmann 4 attempts to get an application approved, lease line violations. I did some checking and they had 20 cases on the docket and had filed bankruptcy. The laterals are nearly identical except bottom hole depth. 11,200 vs my 8,600 and historically they triple my production. My operators change with the weather. The neighbor attended the auction of his unit and said it sold for 18.5k. As I noted in another post what little it produces they code to onsite use. Enuff whining.