LEASE EVALUATION TEAM
Land and resource restoration on PUF lands is an extremely important part of the stewardship administered by the staff of University Lands. Multiple departments continuously survey and evaluate leasehold performance to ensure compliance with the terms of the lease. One example of this stewardship is UL’s Lease Evaluation Team, which is made up of multiple representatives from the Land, Surface, Regulatory and Production Accounting departments. This team continually identifies non-producing or low producing oil and gas leases and engages the operator to ensure that leases are not being held if they are not producing in paying quantities. When a non or low producing lease is identified, UL requires the operator to perform well tests which must be witnessed by UL staff. The well test demonstrates the production capabilities of the lease and/or individual wells. If the well test indicates the lease is no longer capable of producing in paying quantities, the lease is terminated. The operator is then required to plug the wells and remove all infrastructure associated with the terminated lease, including pump jacks, tank batteries, flowlines, powerlines, as well as all caliche from the well pads, tank battery location, and access road. The damaged areas are then reseeded to assist revegetation and return the land to near native conditions.
Lease Termination – Reagan County
Oil Well Test – Reagan County
Lease Termination After Remidiation – Reagan County
Fiscal Year 2020 Annual Report
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