I’m a royalty owner in Reeves County who has a well that is apparently getting ready to stop producing and I need to understand the processes involved with how operators get gas production reported to the RRC and how the operator changes the initial reports. My concern is that I have a lease that terminates with a 90 day period of no production and the well had reported a period of no production for 4 months. After notifying the operator with a letter that the well had gaps in production and low production they backdated the reports with the RRC showing a very small about of gas was produced and flared in the last two months of the 4 month period so that on there was only 60 days of no production. In this case the operator claimed that there is consistent production and the lease was still valid. So my question is how do operators prove what the are reporting on production to be true and accurate?
There are some operators who play these games to hold onto a lease or not have to pay plugging costs. If you post the operator and well, some one may have more information. In a future lease, have your attorney add that the well needs to produce in paying quantities with a definition of paying quantities.
Permian Resources, Jobe State 70-1, 2H.