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 Frank Walker on August 3, 2012 at 11:47pm

Advising a lawyer visit is probably good counsel.  But right after that I would suggest this guy visit his district attorney.  This entire episode sounds to me like blatant fraud.

Or if he wishes to avoid pursuing this as a criminal matter, perhaps the OP should consider a civil lawsuit.  He is being prevented by this fraudster from exercising his rights to exploit mineral wealth he owns.  He sues for the lost income and also for damages.

Permalink Reply by Mike Knapp on August 4, 2012 at 2:21am

Madd Mann

You situation does indeed seem rather odd.  I can't speak to many of the issues, but I can tell you that the well need not necessarily be on your property.   Years ago, your property could have been part of a larger property.  If a well was drilled on that larger tract and then later on down the road the owner divided the parcel up into smaller pieces, all of those smaller pieces would still be subject to the lease granted on the parcel before it was divided. 

Best of luck figuring things out.

Mike

Permalink Reply by Billy Park Whyde on August 4, 2012 at 4:07am

Question? Have you tried using the maps on GOMS to locate the closest wells near you? http://gomarcellusshale.com/group/ohio/forum/topics/ohio-well-maps

from that angle you might get the names necessary to look at the lease history, property transfers ect. to track it down.

Permalink Reply by Billy Park Whyde on August 4, 2012 at 4:20am

Have you received any royalty payments at all? 

Permalink Reply by madd mann2 on August 5, 2012 at 8:05am

I have done a mineral search 200 years foward and reverse

that last lease is 1944 when the wells were completed 1958 the wells where plugged. 

I own 3/4s of the property mention in the lease and have the only purported well in production..

I signed a avidavit of none production.....  I need a expert to say these wells are not producing....

no checks.... no well heads..... no meters...

waiting on the odnr to get an inspection report...

anybodg use the epa to inspect the safety of a well and it's state?

I am concerned of the state of these well (holes) on my property.  (if I only knew where they are?)

I gps located them just rusted remnents....

 

Permalink Reply by Billy Park Whyde on August 5, 2012 at 8:17am

report it to the ODNR as a leaking abandoned well under their  http://www.ohiodnr.com/mineral/orphanwell/tabid/10376/default.aspx

"

What happens after a complaint is filed?
The division will investigate each complaint to determine if the well qualifies for the Orphan Well Program. To qualify, a well must be verified as an oil and gas well and

  1. have no legal owner with the money to plug the well
  2. the state has forfeited the owner’s surety bond

An inspector must be able to observe and document the condition of the well during a site visit. The division does not excavate property to look for abandoned wells. Instead, it is the landowner’s responsibility to locate and expose the well for inspection. NOW HOW CAN THERE BE A WELL IN PRODUCTION IF IT CAN NOT BE FOUND?  The inspector then completes a title search at the county courthouse to determine the legal owner. If an owner is found, the division will require the owner to plug the well.

Permalink Reply by madd mann2 on August 5, 2012 at 11:22am

That was my question over a year ago...!!!

On the history card (ODNR has it is marked as PLUGGED and Abandoned in 1958) 

No production till 1995 or so... 45 years!????  Either misinfo on forms or scam to hold the lease????)

Now it shows as a producing well  

Is there any method to unplug a well ? 

Wouldn’t that be a process that would need to be recorded?

Can I just ask for a inspection so I can have it properly Marked?

I hate to "create a crisis" but if people will cooperated and just locate and inpect the well

I guess I will be forced to....

Amazing

Permalink Reply by Billy Park Whyde on August 6, 2012 at 2:07am

  Suggestion  call your Ohio State Senators explaining to them the problem in brief inform then that you are going to send a email explaining the problem and that the information the ODNR  is of no assistance to your problem and ask for their assistance to get clarification from the ODNR O&G Division. 

  Sometimes it get attention real quick.

Permalink Reply by william r rinehart on August 6, 2012 at 4:56am

Hello,

we are kinda in the same boat shallow well installed in 1972 bought by a well refurbisher in 1974. Property was sold to us 10 years ago, we own the minaral rights, but are considered held by production. It is hard for me to believe that this well is producing comercial amounts of gas? I search high and low, and cannot find what is comercial amounts? Devon has started a well in the field by our property, the last time I spoke to the owner of the shallow well, they said they where going to sell them, but good news we would receive 12 1/2 %, which was the old lease, that my freinds is highway robery. The tanks where so rusted, leaking pipes, drove by there a week ago, they painted the storage tanks, looks like a brand new well, the whole thing stinks to high heaven. Doe anyone from ODNR check for production, or is that left to the driller to write in what ever numbers he thinks he needs?

Bill

Permalink Reply by Frank Walker on August 6, 2012 at 6:09am

Sounds like more fraud to me.  And if they are permitted to get away with it, they will continue with their fraud.  Talk to your DA, or else try to get a lawyer to take your case on the basis of a percent or two of whatever extra royalty he recovers for you;  the portion of royalty that exceeds 12.5%.  Have your ducks (i.e., documentation) lined up in either situation.  These people don't have the time or inclination to do your homework for you.  

Permalink Reply by Billy Park Whyde on August 6, 2012 at 3:39pm

 If the well has a storage battery (tanks) it must not be connected to a pipeline for oil. If it is selling gas there should be a gas line running through the property to a gathering line some where.  When oil is gathered run tickets from the transporter are produced indicating the well, location, owner, the size tank, temperature and measured level of the tank before and after loading is completed. The paper trail exist! If it doesn't someone is into some deep BS.

Permalink Reply by Gunner Ostergard on August 6, 2012 at 5:47am

Here is a case that says a stop in production allows the landowner to end the lease.  BTW yes it stinks to high heaven,  but when there is this much money involved,  these things will and do happen.  If the operator is this shady don't expect them to give up the lease with a mere stern letter from a lawyer.  Prepare for battle and prepare to sue them.

 

Thank you Houston Harbough for posting this on your site.

http://www.hh-law.com/News/20110302-TemporaryCessationofProducton.aspx

 

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