I just would like to know how much money you need for the government to let you operate an orphan well
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Depends on the state. Some states have much higher bond requirements than others.
But beyond the bond, you need to consider all of the liabilities for future plugging and other lease cleanup expenses that you may become liable for. The shallower the well the cheaper plugging expenses are (generally speaking). I’d want to make sure you have good wellbore integrity before assuming the liability on one. An expert in the area could help make that (probable) determination before you touch it. In Kansas if you do anything (physically) to an abandoned well you may become liable for it so be wary.
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Kitchen has good advice. You need to track down the last owner and see if they are still in business and if they already have a bond at the state. You may have to buy it from them. Also, if you take over the operator duties, you will need a good attorney, accountant, liability insurance, suggest you put the well in an LLC so you cannot be sued personally for any liability (additional expense to set up), need a purchaser for picking up the liquids and gas, know what the economic potential is or if the well is dead due to mechanical damage or has already produced what it could, etc. The endeavor is not trivial and not for the amateur without professional advice.
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Ok thank you, it is just a shallow well with an old Jensen which seems to common in my area
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You might contact your local oil and gas regulator and discuss the potential with them. They may have records on the well also.
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I don’t want to give the TXRRC any ideas but is there any possibility that royalty owners would ever be made responsible for cleaning up orphans?
My understanding is the royalty owner is not responsible for the costs associated with plugging and other reclamation efforts in cleaning up orphans. This falls to the operator and the Bond they are required to provide before operations ever began. If the Bond is not sufficient to cover the costs of “orphans” and other reclamation efforts, the DOGM may pursue other means to collect from the operator, assets, legal action, etc.
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None. Zero. Zip. Nada!
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So if I was the royalty owner then I would not be responsible for plugging costs or anything in that area
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Correct. The only way you could become liable is if you were to physically manipulate, operate, or otherwise interfere with an abandoned well. There was a case in Kansas earlier this year where a landowner pulled equipment off of abandoned wells and sold it. The KCC came back on them as the party responsible for the well plugging costs even though the land owner had not operated the wells - but because they had physically interfered with them by removing the equipment they became liable under state law.
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