Marcellus "Shut In" Clause in Lease

Original Gas Lease phraseology considered a Well "Shut in" if the Drill bit penetrated the surface, but was never completed.

In this Shale Gas Generation, The driller's break the surface and install a "Cellar" to capture outflow from the drilling process.

Does anyone know if this Constitutes a well "shut in", if the driller installed a "cellar" at a permitted well, but has yet to drill it?

Current well pad has 6 drilled/producing wells, 3 more permitted (2 with cellars in place).  Thanz.

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Permalink Reply by Kyle Nuttall on October 2, 2019 at 3:53am

Typical shut in clauses say that a well has to be capable of production in order for it to be considered shut in.  Your lease may have different language.  You'll need to read the lease.  If what you're saying is that you've read the lease and the shut in clause defined shut in as a well bit penetrated the surface but was never completed then you're probably right in thinking that the well is shut in as defined in your lease.

I would want to read the actual language of the lease myself before giving a more definitive answer.

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