You state that if a well is “temporarily incapable of production due to a mechanical breakdown” the well is HBP? What is “temporary”? Are you saying the license to not produce extends beyond a “lack of market” to a “temporary” inability of the well flow gas?
yes; but you are not going to get any satisfaction from my answer. The court said the period cannot be measured in days or months. It takes into account the reason for the temporary cessation of production and the steps the operator took to resolve it. Lets talk about two extremes. One example is a well that needs a bolt that one can buy from Lowes. Suppose the operator, who has a ready market takes two years to fix. Now contrast that with a well that sits in a swamp, accessible only in the summer, and the breakdown is a specially manufactured piece of equipment that needs to be imported. The court would likely look at those situations differently.
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Makes sense. Now consider a vertical well replaced by a horizontal well spud in more than a year after shut-in. The original well still is non-productive. Interesting, no?
Happens a lot more than you think as far as spud time vs actual production lately. I have some that were spud over a year ago and no production yet. Soon though according to all I do know. Price of oil can change whether something happens or nothing at all. Just an FYI. mk
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