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The AAPG/Datapages Combined Publications Database

Oklahoma City Geological Society

Abstract


The Shale Shaker
Vol. 48 (1997), No. 2. (September/October), Pages 36-36

Abstracts of Oral and Poster Presentations at the 1997 AAPG Mid-Continent Section Meeting, September 14-16, 1997, Hosted by the Oklahoma City Geological Society

Gas Previous HitBalancingNext Hit [Abstract]

Timothy C. Dowd1

Problems can arise when gas that has been jointly produced is not jointly marketed. Generally, the working interest owners independently market their share of the recoverable reserves. As it is impossible to determine the exact share of the recoverable reserves, it is also impossible to determine the exact amount of gas owned by each working interest owner in a well until all gas has been removed from the reservoir.

The paper will explore production imbalance and how it occurs. It will also look into the legal rationale for the three methods of Previous HitbalancingNext Hit recommended by courts and commentators, i.e., 1) Previous HitbalancingNext Hit in kind, 2) periodic cash Previous HitbalancingNext Hit, and 3) cash Previous HitbalancingNext Hit upon reservoir depletion.

The paper will also discuss recent court cases and statutes regarding gas Previous HitbalancingTop. One major issue of importance is the liability of successive leasehold owners for over-production by their predecessors-in-title.

End_of_Record - Last_Page 36--------

ACKNOWLEDGMENTS AND ASSOCIATED FOOTNOTES

1 Woska Helms Dowd Underwood & Hasbrook, Oklahoma City, OK

Copyright © 2003 by OCGS (Oklahoma City Geological Society)