Hello, I inherited my father’s company which has several old LOEs (5 years) from a particular well. The statute of limitations where the company is located is 4 years. The statute of limitations where the well is located in is 6 years. Which state/statute determines if they can file a claim against the company?
This is a deciding factor on how I will move forward. Thanks!
Define LOE. Those letters may mean multiple things. Usually means Lease Operating Expenses, so not sure why you are asking about them.
Usually the state where the minerals are located determines the rules.
Hi Martha,
Thank you for the reply. Sorry, should have wrote Jibs. The highest Jibs are right around the 5 year mark.
Also to clarify, my dads company and myself are located in Texas with the 4 year statute. The well is located in North Dakota with the 6 year statute.
I appreciate your help!
Did you inherit these interests individually, or did you inherit the ownership in your father’s company?
Tim,
Through the company which is a Limited Partnership.
This may be governed by the terms of JOA (Joint Operating Agreement) which is usually signed by working interests to participate. A party who later acquires the WI will still be subject to the JOA. An oil and gas attorney familiar with operations side can best advise you, as your decisions may be affected by what other assets are owned by LP.
We do not have a JOA for this well. I owe for these bills. Just trying to see which statute applies for this situation, morality aside.
The state where the property is located.
Thank you everyone for your help!
Most of my minerals are located in Oklahoma (Canadian and Kingfisher) so was unsure how to handle this. Many thanks.