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What is a natural gas shut in?

Shut-in means turning or installing a valve so that natural gas does not flow from a well. Shut-in means flow of all liquids and vapor into the Tank System or piece of equipment has ceased and cannot be resumed without HighPoint personnel opening valves, activating equipment, or supplying a power source.

How long can a well be shut in?

1-YEAR. After a year of being shut in, docHub corrosion damage is likely to have occurred if the well has any water left downhole untreated.

What is a shut in payment for a gas well?

In such circumstances where a gas well has been completed but no market exists for the gas, the shut-in clause enables a lessee to keep the non-producing lease in force by the payment of the shut-in royalty.

What is a shut in royalty?

A shut-in clause (or shut-in royalty clause) traditionally allows the lessee to maintain the lease by making shut-in payments on a well capable of producing oil or gas in paying quantities where the oil or gas cannot be marketed, whether due to a lack of pipeline connection or otherwise.

How long can a well be shut in?

1-YEAR. After a year of being shut in, docHub corrosion damage is likely to have occurred if the well has any water left downhole untreated.

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