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Operators May Earn and Sell Carbon Credits for the P&A of Inactive, Shut-in, or Temporarily Abandoned Wells

The Energy Law

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.

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Force Majeure Clause Fails to Protect Oil and Gas Lessee From Mistakenly-Scheduled Deadline

The Energy Law

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.

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Amendment to Louisiana’s Risk Fee Statute That Allows For Notices After Spudding Is Awaiting Governor’s Signature

The Energy Law

. § 30:10, which governs unit operations in the absence of a joint operating agreement. The amendment provides that estimated or actual drilling costs determined by the AFE sent with the notice are due within sixty (60) days of the actual spudding of the well or receipt by the notified owner of the notice, whichever is later.

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Louisiana Second Circuit Provides Guidance as to Good Faith Required When Conducting Operations Necessary to Interrupt Prescription of Mineral Servitude

The Energy Law

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.

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Five Lessons Learned from Executing Shale Drilling Transactions

The Energy Law

Also included is a joint operating agreement (“JOA”) to govern the drilling and operation of additional development wells in a formation once a working interest in that formation has been earned in accordance with the provisions of the EJDA. The Five Lessons 1. Take advantage of the geology.

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FIFTH CIRCUIT BEGINS TO CLEAN UP ITS JURISPRUDENCE ON HOW TO DETERMINE WHETHER A CONTRACT IS (OR IS NOT) MARITIME

The Energy Law

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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