AboutDavid B. McCall Expertise Questions regarding oil and gas exploration and production, the operation and management of oil and gas producing properties, and questions related to mineral ownership, title problems, and oil and gas leases.
Experience I am Board Certified in Oil, Gas and Mineral Law in the state of Texas. I have more than 34 years of experience in the industry as both an in house attorney for major oil companies and as a partner in oil and gas firms. I am also a mineral owner and receive royalties from oil and gas production. I have extensive title examination experience, and have represented clients in many administrative and court proceedings.
Organizations State Bar of Texas, Texas Bar Foundation, and Austin Bar Foundation.
Publications Various state bar seminars on Oil and Gas matters.
Education/Credentials I have a business degree in marketing from McMurry University, 1971, and a JD degree from Texas Tech University in 1974, where I graduated 17th in my class. Board Certified in Oil, Gas and Mineral Law in 1986.
Question I am the operator of a privately owned (7 partner) leasehold interest in a minimally producing gas well in Wise County. We have many royalty/override holders. It was producing very well for approx. 40 years but there is a hole in the line--at the spot of an old repair for which I have no records. The partners are unable to afford the possible cost of repair. Are there companies that purchase these types of concerns? Do you recommend auction sites? Would I be better off capping the site, which I know is also costly. I have no expertise in the area of gas wells, I live in DE, and became operator by default after the deaths of my father and brother. Any ideas regarding selling/resolving this concern would be greatly appreciated.
Answer Hello Mary. There are companies who might be interested in looking into your situation and perhaps taking the property off your hands. If you are interested, enmal your contact information at davidbmccall@gmail.com and I will put a couple of them in touch with you. Perhaps they will be interested. Auction sites are a possibilty but I would run other traps first, particularly since the well is having problems.
Is the well still producing at this point or is it down because of the mechanical problems? You need to guard against the lease expiring if there are no operations or production on the property. You will need to look at your lease, or have an attorney to look at it for you, to evaluate your rights in this regard. I can't make any recoomendations about plugging the well because I don't know all of the facts. but the Texas Railroad Commission will not let the well be inactive for a long time without plugging it.
Goos luck and let me know if you have any further questions.