Subj : Re: Gas Crunch
To   : Deuce
From : Frank
Date : Sat Sep 03 2005 12:20:00

  Re: Re: Gas Crunch
  By: Deuce to Frank on Fri Sep 02 2005 02:21 am

 > and a shut in well costs on the order of $1000-$5000 per year.  If you expec
 > to need to keep it shut in for more than 10 years, you cap it instead as it'

   Yes, I would suppose some cost would be involved in a shut in well. Once
   one is shut in here it is put on reduced tending. I don't go to it unless
   there's a problem so tending costs arn't an issue. There may be tax costs
   associated that I'm not aware of.

 > that long.  The main reason that wells are left shut in are so the oil compa
 > can maintain it's 50 year old lease of the rights for something like $1 per
 > year.

   Yes, this would be true. With the well shut in, even if it's not producing
   you still hold the lease. When you plug and abandon the well you give up 
   the lease unless you have other wells on it.


       The Dark Castle BBS - thedarkcastle.net - Elkhorn City,Kentucky

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