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Hydrocarbon Mgt., Inc. v. Tracker Exploration, Inc – Case Brief Summary (Texas)

In Hydrocarbon Mgt., Inc. v. Tracker Exploration, Inc., 861 S.W.2d 427 (Tex. App.--Amarillo 1993, no writ), the Court addressed the evidence necessary to support a conclusion a gas well is not capable of producing in paying quantities.

Evidence there showed the Barnes well had several mechanical problems, including corroded tubing and casing, causing it to cease production when it was unable to flow against the sales line pressure. Id.

Applying the standard that a well capable of production in paying quantities means a well that will produce in paying quantities if it is turned "on" and begins flowing, without additional equipment or repair, we found the evidence sufficient to establish the Barnes well was not capable of producing in such quantities when it was shut in. Id. at 435.