I guess this shut-in stuff confuses me a bit. So if they drill a well and cap it, they only have to pay $20 per acre per year while it's capped. And, if they don't do anything with it after 36 months or something, you're released from the lease?Is this pretty standard with most companies? How about the FG lease (not sure how to view that, so asking here). Seems pretty low to me. Also, how often does this happen I wonder? I know there were some statements in there about them having to do everything possible to utilize the well, but who makes the final decision if they're actually doing that?I guess my main question is if this stuff is pretty standard and normal, with normal terms provided if/when it happens?
Thanks guard,How about this one. "The right to use said pipelines terminates when production from the leased premises permanently ceases and all wells associated therewith plugged and abandoned."Couldn't there be a significant amount of time between "ceases production" and "permanently plugged and abandoned"?Shouldn't there be a time limit?
BOY AM I GLAD I HAVE YOU GUYS!!! KEEP UP THE GREAT WORK!!!
I didn't notice anyone answer Jethro's earlier question....but then again...I haven't had enough (straightup) coffee yet today anyhow....Jethro? You put on your form whatever your tax bill says you have acreage wise, whether or not there is more or less (they'll find out, really) At the time of signing, you get a check for $1000 per acre, the balance by Dec 31, 09, once they've had time to complete all these title/deed searches.The timing of the balance payment is important. It means it'll all be in this tax year under this tax years laws (ie, before anyone -coughmrobama- pushes changes through. Plus, your regular taxes will only take the 'higher tax bracket' hit for one year, not two. Unless, of course, you get a well next year....in which case I'm assuming you wouldn't mind being in a higher tax bracket two years in a row Enjoy the coffee, Cheers!)Best,-CG