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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: Crimson Ghost who wrote (27359)8/7/1998 9:28:00 PM
From: Ken Robbins  Read Replies (2) of 95453
 
Is there a landman or lawyer reading this that could give me some information? I am not looking for a legal opinion, but rather for a person that has knowledge of a similar situation. The question is a bit long, so please bear with me.

An operator began drilling a deep test based on a permit for a 160 acre oil unit. After drilling out of an intermediate string of casing set at about 13000 feet, a high pressure gas zone was encountered at some 17000 feet. The well blew out and was set fire due to H2S gas. The rig was destroyed. After burning for some time the formation bridged over, stopping the blowout. The operator was able to move in another rig and is attempting to re-enter the well.

The question revolves around a filing made by the operator to the controlling state authority to re-permit the well on the basis of a 640 acre gas unit. The filing document states that all lease holders in the new unit would pay their share of the cost of the well. Now my friend owns a lease in the 640 acre unit, but outside the original 160 acre unit. Naturally he does not want to share in the cost of the blowout and associated liabilities of the operator.

He can object to the new unit, but wants to know if similar situations have occurred and what precedents might have been set in order to justify his objection.

I would appreciate any leads you can give me. Private message would be appropriate.
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