
Shut-in royalty deadline tracking
Problem
Oil and gas leases carry contractual deadlines. When a well stops producing and is shut in, the lease has a specified deadline and requirements. For example, an operator may have 90 days to resume production before a shut-in royalty is owed. Those dates usually live on a Land Administrator's spreadsheet, separate from the well's actual production status. Nothing automatically checks whether a status change started a new clock, so a deadline can be missed simply because nobody cross-referenced the two.
Solution
The lease is defined once, with its wells and its provisions. A provision records the clause, the number of days, the rate, and the effective dates, so amendments keep a running history of past rates. When a user changes a well to Shut In, the system creates a shut-in royalty obligation on the lease. It calculates an action by date and a due date from the days on the provision. The status of the obligation moves without anyone updating it, based on the deadlines and requirements specified for that lease. The obligation starts as Open and becomes At Risk when the action by date arrives, and Missed if the due date passes unsatisfied. If the well returns to Producing, it becomes Satisfied. Each change writes an event on the lease, which gives a running history of what happened and when. An obligation calendar shows every action by date and due date across all leases. The land team no longer has to cross-reference well status against lease terms by hand. A status change is reflected on the lease right away, with deadlines already calculated and a flag before the due date.
At a glance
Vertical
Oil & Gas
Energy
Used By
Operations
Finance
Legal & Compliance
Building Blocks
Custom Applications
Logic Blocks
Workflow
Calendars
Large Language Models
Dashboards
Building Blocks
This solution was built using these Nextworld features
Custom Applications
The Oil & Gas Lease Definition application tracks one or many wells held within that lease to ensure their obligations and deadlines are tracked.
Logic Blocks
Creates the obligation when a well is shut in and calculates the action by and due dates from the current provision.
Workflow
Moves obligation status between Open, At Risk, Missed, and Satisfied automatically.
Calendars
The Obligation Calendar shows every action by date and due date across all leases, so the land team can see what needs attention each month.
Large Language Models
Writes the lease event based on the due date, provision type, and trigger.
Dashboards
The Well Management and Lease Management dashboards surface the shut-in well and the new obligation.