I had a non operator working interest in a well (D Properties C-#1) that was P&A 5 years ago. We paid our part and settled everything and that was the last contact. Sorting through paperwork to clean up for estate planning, I noticed there are 3 lessors under the P&A property. My Exhibit A looks like this on the assignment:
D Properties C-#1
Lessor: RTH (includes lease date/recorded book/page)
Lessor: MK D C-1 Lease (includes lease date/recorded book/page)
Lessor: MK D C-2 Lease (includes lease date/recorded book/page)
My question is:
Does our assignment terminate/cease to exist since this D Properties C-#1 was P&A?
Does the lease/assignment terminate with all 3 lessors?
Trying to understand if this is dead and a walk away situation or if I’m still tied to this. Not sure how this works.
Thank you for your patience.
Depends, was that the only well drilled under the 3 ogls? Were there outside lands included in the 3 leases that might have been drilled during the time frame? Im assuming no or you would be getting paid on them and you would know about it, so its more than likely a dead and walk away situation, but wouldnt hurt to spend a hour or 2 looking into it.
I can’t see that anything else was getting drilled and haven’t had any correspondence in 5 years. How do I check into this more? I’m not sure what other info I need or what website I need. I don’t have a JOA or an API. Thank you
Several factors to consider. What were written terms of the assignment? Did you receive an interest in the leases which may still be in effect or was the assignment only in the individual wellbore(s) which would have expired when P&A? If you own an interest in the leases, was there any other limitation such as being restricted to particular formation or depths? Could the leases still be in effect due to producing wells drilled to other depths and so you still have a WI even though it is not producing. It is not sufficient to only look at the exhibit. You can check the deed records to see if releases of the leases have been filed or if the lessors have granted new leases.
I have no clue where the interests are so I cant tell you where to look? But most active areas are online now, google the county website, pull up the conveyance where you came into title to see if you were granted ARTI into the ogls, then pull the lessors original OGL’s and see if there were any outside lands. IF there are outside lands (other acreage/sections not included in the plugged well) and you were granted arti into the leases, then youll have to check to see if there were any wells drilled from the date of the OGL’s until the P&A. If there werent any outside lands, then its highly unlikely the same property had wells drilled on it if the original one was plugged unless its a very old well? From a birds eye view, it sounds like you arent going to find anything, but Id spend a hour or 2 looking into it and if you dont know how to do that, Id pay a landman if you know any a couple hundred dollars to do so for peace of mind if money isnt tight.