Well is temporaroly shut in due to new drilling

Texas Mineral Rights Dimmit County, TX
1

I have a small interest in Well API 4212734970 (Snowmass Unit A Dim 1H) and I am experiencing a dramatic decrease in production. The monthly check from Chesapeake in November was about half the recent monthly payments. When I inquired about the December payment, I was only told that this was because it was below the required threshold of $100. I was simply told, “The well is currently in a producing status, but I’m showing very low production numbers for the month of October.” They had no explanation for this.

I recently learned from a landman with Chesapeake Energy Cotp that this was due to the well being shut in while new wells were drilled around the area and that the well should be producing again soon. Why wouldnt Chesapeake just notify the owners of these kinds if things?

2

They do not notify people of wells being shut in due to activity around them. Given how many wells are drilled daily and the thousands of people that would need to be identified and no legal reason to do so, they just don’t. If they are not the operator of the well nearby, they may not even pay attention to it. The royalty folks are often in a different office than the exploration and drilling folks. Sometimes, a continent away. Just one of those quirks…