I work in the oil field and I know that some wells that are fracked will break in or “communicate” with another well nearby. From my experience, the older well does not respond well and production drops. How can you protect yourself in a lease when this happens?
Thanks, Joe
I would assume that you would need a petroleum engineer to prove that the new well did negatively affect the older well. If the new well did negatively affect the old one, I would hire a Board Certified Oil and Gas Attorney. Depending on where you are would depend on the Statute of Limitations, but in Texas this would be a tort case and under the 2-year not the 4-year refund statute.
Dear Mr. Jackson,
That issue has not been decided in Montana to my knowledge. It has been recently decided by the Supreme Court of Texas and the decision essentially said that if the wellbore was at a legal location, then there was no trespass and therefore no damage. It is further backed up by the Rule of Capture. It is well established that vibrations, etc. is not trespass. For trespass to occur the actor must enter the property.
In the Texas case, the well that was essentially killed was notified in advance and shut in during the fracing operation. When they tried to re-establish production, they produced a ton of frac water and never got the well back to the same level as before.
In new jurisdictions trying new cases, they will look to other jurisdictions to see how other courts have ruled.
http://www.mineralrightsforum.com/profiles/blogs/is-fracing-tresspass