Marietta, GA asked in Energy, Oil and Gas for Colorado

Q: I have a very small working interest in an old well in Logan County CO that I inherited. Over time the income has

Dropped and the operating costs have gone way up. The operator is thinking of packaging this well with some other low producing ones and selling them. Would I receive any proceeds from this sale?

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1 Lawyer Answer
James Tack Jr
James Tack Jr
  • Energy, Oil & Gas Law Lawyer
  • Oklahoma City, OK

A: You would not receive any monies from the operator's sale of its interest. However, If you want to get rid of your interest, you might tell the operator that you are willing to sell your interest along side his. A purchasing operator often times will want as much of the well as he can purchase and get rid of the small working interest owners so he doesn't have to deal with them when he takes over operations. Small working interests in old wells are many times difficult to get rid of. There can be more liability than value. Sometimes the operators will buy the interest. Good Luck.

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