Purchased a piece of land in March of 22 and it came with 50% mineral and an already signed lease agreement. The operator came and drilled a well in 22, completed the well but it never made any oil. The 3 year lease ends in October of this year (since no production happened) but the well head is just sitting there doing nothing for 2 years. Once the lease expires what happens with this well and what steps should I take to make sure it’s handled appropriately and cleaned up properly? Property is located in Jones County TX.
You should first go to RRC website and see the well status. Did the operator frac the well and then classify it as a dry hole? Or only drill and the well is waiting for a frac and so classified as a shut-in producer? These kinds of questions will determine whether the lease is expiring. Also, review the lease and see if it includes an option to extend. If you post the well name, API and operator, then someone can help you with information about the well.
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Kyle, contact the district RRC Office (possibly Abilene. Tell them about. the situation and ask them for a status update. They are responsive.
Just my two cents worth. I’m just a land and mineral rights owner with a limited experience writing and negotiating leases after some of the horror story experiences and issues. Getting a lease and getting a well drilled is not all peaches and cream. Yes, the up side can be great; but, after the initial lease payout, what’s in the lease allows us to sleep at night. In your case, evidently, the lease was already in force, so you’re stuck with what’s there. Good luck with your follow through.
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