The well I was referencing is not a stripper well. In Dec the well only produced 1 day but in 18 days production in Nov the well produced 2102 bbl. Hardly a stripper well. Like in any other part of your life, if you spend all of your income as fast as you get it you will eventually run into a bill you can’t pay. I don’t assume that everyone I come in contact spends until they are broke and maxes their credit cards, but if they are that way, I agree that they have no business owning part of a well, and in fact they should probably move back in with their parents until they are ready for the wider world. If you sign a JOA that allows for a 300% penalty, then a 300% penalty you will have. What ever posessed you to sign such a document? Think for a moment, how do they get your part of the money if you did not sign the JOA? Buddy Cotten told me that people get it stuck to them in a JOA, so I am not party to one, not that I would have signed one anyway. LOL.
You didn’t say what % of your total well interest was, that makes a difference in how large your bills are. I’m sorry your wells are so poor and produce so much water. People should consider what kind of well they could get before deciding they want to be an owner.
I have been dealing with the NDIC and KOG this week about a reentry on a Bakken well. When I talk to either they both tell me that it is such a rare occourance they aren’t prepared for my questions.
A $500,000 workover on a space that I only have a few acres in, my part wouldn’t be as much as having the transmission rebuilt in my car. The same cost of work on a verticle well on 40 acre spacing could be serious money. BTW people, I don’t advocate owning in a verticle well for just that reason and because they are prone to reworks.
I don’t know about anywhere else but if a well of mine was losing money in ND, I could turn my interest in the well over to the operator and the operator would have to pay me the salvage value of my part of the equipment and I wouldn’t be responsible for any bills henceforth, but would no longer share in future production from the well. I recommend that people put in a fair amount of study before making their decision to be an owner
If you were non=consent, when you become a working interest you need to get some legal advice and set up an LLC. Lease your interest to the LLC and worst case if you get sued, all they get is your lease, the best lease ever in your favor, and they still have to pay you, alot more than your lease with the operator would have been.
Knowledge is the key here, just about everything that could happen has happened so long ago that the thing to do before, during or after it happens have already been figured out. It’s a business, if you expect to make money learn your business.
Now back to the scary numbers where they don’t say how big the interest is.
