Replies to This Discussion

Permalink Reply by Jim Litwinowicz on April 28, 2013 at 9:45am

jeff;  there is no payment for flared gas unless you specifically added that to your lease.  And I don't know of any lease that has that as companies will fight that very strongly.

Leases call for payments based on what the sale price is.  Flared gas is not sold and thus no payments. There is a lot of pressure to have "green completions which means no flaring.  But that requires all wells to be connected to pipelines to do and there are very few lines in place.  As more gathering  lines are in place flaring will be reduced.

• ▶ Reply

Permalink Reply by jeff on April 28, 2013 at 10:38pm

Thanks Jim. I had heard somewhere that we could get paid for flare gas, but wasn't sure of the reliability of that report. Hopefully green completions will become common soon.

Another ? I have is: the term "workman like manner" seems to be common in lease language. That sounds pretty vague to me, thus full of loopholes. Has that term ever been defined so as to be useful?

J.

• ▶ Reply