Working Interest Question

Law & Legal
1

I invested in a well that was shut in a while back when oil prices were low. The operator asked to plug the well if none of the owners wanted to take it over. So they plugged it and sent a bill for each investor’s share.

This is the first plugged well I’ve been part of. Can you confirm if I need anything in writing to remove my interest in the well once I pay my share? I’m just wondering if there can be additional issues in the future, where I don’t want my name associated with it.

Or once I pay my share, I’m basically free of any additional headaches that may come?

Thank you.

2

There can be other significant potential problems going forward. For example, a state ordered clean up of a toxic well site could run into the hundreds of thousands of dollars.

My best suggestion is to execute a release of the property involved and when you pay the plugging fee, you ask the Operator to hold you harmless for claims going forward. That might be a tough sell.

Best,

Buddy Cotten