Shut-in wells involve more than a temporary pause. If you ignore proper management, you risk fines, lease terminations, or conflicts with regulatory agencies. Knowing the rules helps you stay compliant and avoid costly mistakes.
Understand Oklahoma’s shut-in regulations
In Oklahoma, the Oklahoma Corporation Commission (OCC) monitors shut-in wells closely. Operators must file the correct forms and provide regular reports. If a well sits inactive for over 12 months, the OCC may classify it as abandoned. You could then need to plug the well and reclaim the site.
A valid shut-in clause in the lease keeps the lease active during nonproduction periods. The lease must clearly define shut-in payments and timelines. Missing a payment or exceeding the time limit can cancel your lease rights.
File the right paperwork on time
Submit Form 1002A or 1002C based on the well’s status. These forms report production history or plugging plans. The OCC uses your filings to classify wells as inactive, shut-in, or orphaned.
If you file reports late or skip them, you may face penalties or lose your operator standing. Filing regularly protects you from claims of neglect or bad faith operations.
Maintain surface and subsurface safety
Even inactive wells require active safety measures. Post signs, install fencing, and monitor for leaks or pressure build-up. Neglected surface issues can lead to environmental complaints, inspections, and enforcement actions.
Test mechanical integrity when needed to show the well remains secure. If the OCC finds contamination or groundwater threats, they may order a shutdown and require remediation.
Manage shut-in wells correctly to avoid legal trouble and preserve your lease. Follow OCC rules, file paperwork on time, and keep the site safe. A shut-in well may not produce now, but your actions decide whether it can produce later.