Have two leases with Crawford Energy in Brazos County. Paying maybe $25 every three month. County has royalties valued at $26 for tax purposes. This has been going on for 10 years. How do we go about breaking lease?
From my understanding, as long as the wells are producing, it is almost impossible to break the lease unless you can prove negligence. That has been the problem with Chalk wells, the production drops to next to nothing but still produce. As long as they produce something, most companies won't shut them in and P&A them. This is a good example why I always have a specific zone in my leases.
Good Luck.
I was under the impression that if a well becomes "uneconoic" for several months, the lease is voided and land reverts back to owner. I also understand that there are some leases where there are clauses indicating that a leases is still in place even if well is uneconomic.
What wording on this issue is in your lease?
Most wells must be Plug & Abandoned {P&A} before the lease is void. Contact the Texas Railroad Commission and look at your lease to see what is considered Shut-in Well.
Texas Railroad Commission General Information: (512) 463-7158
Oil & Gas Main line: (512) 463-6838
Well Record requests or questions Email - [email protected]
Look for the words “paying quantities” or similar language in your lease.