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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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Elections to Participate in Proposed Operations are Non-Revocable

The Energy Law

The Court reached this holding based on the wording of the applicable JOAs, which were both based on the American Association of Petroleum Landmen Model Form Operating Agreement 610-1982. As required by the JOAs, Smith provided written notice to the Non-Operating Interest Owners of its proposal to drill four additional wells on the lease.

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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 Addresses: (1) Creation of Mineral Servitudes Via Notarial Acts of Correction; (2) Obstacles Suspending the Prescription of Nonuse from Running Against Mineral Servitudes; and (3) Payment of Court Costs in Concursus Actions

The Energy Law

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.

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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.