CORE Petro’s Low‑Output Texas Wells Dispute
Get the Energy newsletter
Daily energy & climate — solar, EVs, oil, the policy fights and tech bets shaping the transition. Free.
- CORE Petro says its five wells on Chesnutt’s ranch are in compliance, but the company claims it cannot afford plugging costs that run into tens of thousands of dollars per well.
- Jackie Chesnutt has shut off power to the wells after complaints to the Railroad Commission went unanswered, arguing the wells produce only a couple of barrels a month, below the state’s minimum production thresholds.
- Texas has about 99,000 active wells that produce fewer than 10 barrels per day, representing roughly two‑thirds of all active oil wells in the state.
- Railroad Commission spokesperson Bryce Dubee asserts that all wells on the lease are producing, while environmental advocates say companies often report minimal output to avoid decommissioning costs.
- Commission Shift’s 2022 report warns that companies should not be able to “indefinitely ‘produce’ a teaspoon of crude” to dodge plugging obligations, highlighting a backlog of over 11,000 orphan wells.
Why it matters: Landowners like Chesnutt lose property value and risk pollution while operators such as CORE Petro avoid tens‑of‑thousands‑dollar plugging costs; the state’s lax enforcement fuels a growing orphan‑well backlog, threatening public‑health budgets.
Ask SkimNews
