Abandoned Well (Oil and Gas) Law and Legal Definition

The term abandoned well as used in the oil and gas indusrty means a well that is not in use because it ceased to produce natural gas or because it was a dry hole.

Following is an example of a state law (Alabama) defining the term. 400-1-4-.18:

“A well is considered abandoned when it has not been used for six (6) consecutive months, and has not been classified as temporarily abandoned or shut in pursuant to Rule 400-1-4-.17(Request to Classify Wells as Temporarily Abandoned or Shut in), and cannot be operated, whether because it was drilled as a dry hole or has ceased to produce, or operations have not been conducted thereon, or for some other reason.”