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Operators may now have the potential to sell carbon credits in exchange for the P&A of inactive, shut-in, or temporarily abandoned wells. Although Louisiana is allocating significant funds to P&A orphan wells, there is a lack of financial incentive for operators to address AOOG wells. million vehicles per year.
2023), the Texas Supreme Court held that the lessee could not invoke a force majeure clause to save its oil and gas leases when it inadvertently scheduled its operations to begin after the requisite deadline. MRC did not notice its error until approximately two weeks after May 21, 2017, at which point it had not yet spudded the new well.
In Cannisnia Plantation , the Louisiana Second Circuit faced the issue of whether a mineral servitude owner conducted good faith operations sufficient to interrupt the prescription of non-use of a mineral servitude. A well was spud on March 28, 2006. Cannisnia Plantation, LLC v.
In Petro-Chem Operating Co., 1] In the case, an operator initiated a concursus action seeking to resolve ownership interest in minerals underlying property on which it was operating. Flat River Farms, L.L.C. , Flat River Farms, L.L.C. , 12] In its analysis, the Court first looked to the pertinent language of La.
Since plugging and abandoning a well is an integral part of the “life cycle” of a well, and successfully P&A’ing a well is a material obligation of any operator under Louisiana law, the court determined that P&A work does facilitate drilling or production. Carrizo Oil & Gas, Inc. [3]
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