I work in the oil field andI know that some wells that are fracked will break in or "Commuicate" 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 effect the older well. If the new well did negatively effect 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 2yr not the 4yr refund statute.
Dear Mr. Jackson,
That issue has not been decided in MT 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 fracwater 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