Plugged well that is listed abandoned in 1958 "IS HOLDING MY LEASE BY PRODUCTION"

What to do???? .I have property that has Minerals Rights that was Rejected due

to a well "that is non existent but has mysterious production reports lately" that is listed as plugged and abondaned in 1958???

The well can not be located by myself or ODNR.....

Has anyone had to clear a mis representation like this?  Well owner /operater won't call back   Landmen and Oil company say they saw the well and verified it.... but won't show us where it is........

Oil company preferes to run leases through the small operater because of the discounted horzantal well lease with them.    Any Advice is welcomed!

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Permalink Reply by JR on August 2, 2012 at 11:01am

Get a good O&G lawyer.  The well is probably on one of your neighbor's property.  Shady.  Oh, and welcome to the long, complicated life of figuring out who the heck owns your drilling rights.  

Permalink Reply by Frank Nesmith on August 2, 2012 at 11:10am

JR is right. Get a lawyer NOW!!!

Permalink Reply by GW3 on August 2, 2012 at 11:12am
Same thing happend to us ,, there were no production reports the free gas was gone for 20 yrs . And then all of a sudden the well was producing last yr .. When we checked the well or lack of... There was production pipe missing .. Obviously we knew what they were doing .. We are working with a group of lawyers .. I would advise the same .. U wont get anywhere without legal work..
Permalink Reply by Brian Powers on August 2, 2012 at 12:51pm

Madd -

I've  plugged dozens of wells both onshore and offshore; and after isolating the productive zone with cement and removing as much steel as we could, I cannot recall one well that was still productive.

I advocate a site survey to look for remaining wellhead equipment and a dry gas meter, which would be the instrument for gas custody to a purchaser.

If a well is properly plugged, there should be a steel cap welded to the surface casing stub a few feet below ground level  that has the well name and number, an API number and maybe a legal discription of the location etched on the cap. Each state has their own regulations about well abandonment, isolation methods, how to protect fresh water sources, etc.

Best of luck to you -

 

Brian  

Permalink Reply by madd mann2 on August 2, 2012 at 2:43pm

Something to Consider

A small 1 man well owner operator (small small wells) has say couple thousand acres tied up with shady leases just waiting or buying time

(why break a lease just keep reporting some production) the state does not track royalty payments

Thats why in todays leases have a minimum HBP amount clause...........

 

A big horizontal drilling energy company  comes in and makes a deal with this little one man energy shop

horizontal drilling energy company  gets to operate under "100 year old"  leases, (no rules or epa or clean water...... non of safety precautions a new up to date lease would have)

horizontal drilling energy company  strike a discount rate with this one man shop for cheap discount royalty   

 

That is why the big oil company does not want to show the true status of this well

tells the real mineral right owner they are not interested in helping them.

 

THEY HAVE TO MUCH TO LOOSE!!!!!!  

DISCOUNT ROYALTIES,

keeping proper well site status with up to date standards  

Who thought of clean water in 1900?  

This smells

Permalink Reply by lynn on August 3, 2012 at 9:37am

It doesn't matter how old the lease is-drillers still have to meet current drilling regulations-ie testing water wells within 1500ft, casing standards, safety standards etc.  You will not have the same surface rights a current lease might get you but it does not give drillers carte-blanche with the state law.

Permalink Reply by madd mann2 on August 2, 2012 at 3:40pm

yes monroe county ohio

Permalink Reply by Billy Park Whyde on August 3, 2012 at 11:44am

If there is supposedly production then I would assume their should be income. Income means hello IRS, filing false tax returns for the producer? Could be a big mistake for them a producer.

Permalink Reply by madd mann2 on August 3, 2012 at 11:45am

Lewisville

Permalink Reply by Brian Hawk on August 4, 2012 at 4:40am

@Fang: do you mean an O&G company will clear your title then lease you or are there companies/lawyers out there that will help landowners clear title for no charge?

Permalink Reply by madd mann2 on August 3, 2012 at 4:50pm

It's been a week and no one will show me the well????????????????????????

very frustrating. 

 

 

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on August 3, 2012 at 5:11pm

Not operating for 54 years and then turning it back on sort of violates the implied covenants of the lease.  Get with a lawyer.  They'll have you sign an affidavit of non-production which they will record.  Take that recorded document to the company that leased you (the new one) and ask to be paid.

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