Compensation for plugging an abandonned gas well on my property

I have an abandoned well on my property that I was told needs plugged. The original lease has expired and the well area and old lease road are grown up. They told me they need to put a new lease road in and clear a large area around the well. What type of compensation should I expect from this?

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Permalink Reply by Dexter Green on July 19, 2014 at 5:10pm

Who is plugging it?  Is it the company that owns the dead well or is it part of the Orphan Well program?

Permalink Reply by RF on July 20, 2014 at 3:32am

It's the company that owns it.

Permalink Reply by Dexter Green on July 21, 2014 at 2:35am

I think $0 is probably what you'd expect.  They'll build a new road, plug it, then reclaim the land. 

Permalink Reply by R. East on July 20, 2014 at 5:15am

zero compensation if you're in PA.

The owner of the well is required to plug and abandon the well. If the state can not determine the ownership of the well it will fall under the Ophan Well Program that Dexter mentioned. Your other option is to take ownership of the well and plug it yourself or try to re-work it to see if you can get any production.

 

Permalink Reply by Jack Straw on July 20, 2014 at 5:16am

Getting the well properly plugged and property released from an old lease are good things.

I would first check with your State, to determine what their requirements are; so that you can be sure that these (minimal) requirements are met.

The type of 'compensation' (when plugging is completed) I would desire are:

As much as possible, return well site and road location to the condition they were in before drilling.

Remove any contaminated soil and replace with suitable topsoil. You may wish to attempt to obtain the assistance of your County Agricultural Officer/Conservation Officer (or whatever they are called in your State) to help you in this regard.

Preserve and replace topsoil, as necessary.

Fertilize; testing to determine if viable surface soil is present for vegetative regeneration.

Seed with native grasses.

Protect against erosion.

Have Operator warrant that efforts (seeding, erosion control, etc.) will be successful.

 

In my State, they are required to leave an identifying metal post at the location of the plugged well; this should be the only above ground evidence of the past presence of a well.   

All IMHO,

                   JS

Permalink Reply by Tree Farmer on July 20, 2014 at 5:37am

Get proof of a state approved application to plug before you let them in.

Permalink Reply by RF on July 20, 2014 at 5:58am

My land is located in Stark County, Ohio. I walked the area with the oil company yesterday. we discussed several options of getting to the well and they said I would be compensated. They didn't say how much. I am assuming they will be presenting me with a plan and what I will be compensated. I'm sure the first offer will be very low.

Permalink Reply by Tree Farmer on July 21, 2014 at 1:13am

I have done some basic web research on the cost to plug and abandon a well in our area, $12k is a number that seems to be fairly accurate. I can't imagine a cash to you number being much much more than 10-20% of that, but I am guessing. maybe you can use this as an opportunity to get a nice gravel road put in, or even change the location to suit your needs. They may be able to do more with heavy equipment than actual cash. best of luck

Permalink Reply by Dexter Green on July 21, 2014 at 2:34am

It's closer to $20,000.

Permalink Reply by James Foster on July 20, 2014 at 6:42am

Are you in Ohio? I would say zero. The company who drilled the well is required by law in Ohio to plug the well. The one thing you can require is that everything be restored back to how it was so if you dont want or need the road when they are done they must reclaim for you. The well should have been plugged at the time it was abandoned. If you can find the company on ODNR records you can require them to do it. If they are defunct then apply to orphan well program through ODNR. We just had a well from the 70's plugged and we knew the driller or the company who bought the well from previous owner. This info may be in recorders office too if not on well card at ODNR. They are required to file transfer papers. Any trouble while work is being done call area ODNR inspector to come out. Names and numbers on ODNR website. Our crew did the work on the rainiest days and
made such a big mess on the county road the county engineeers office called to say we had to purchase a driveway permit. We told him company buy that and we reported to inspector. We also saw them changing the oil in our field near a spring. So keep an eye on them if you can. In another state you will have to check w someone there.

Permalink Reply by RF on July 20, 2014 at 7:21am

Yes, I'm in Ohio.

The company I'm dealing with now, bought out another company and acquired this well. They are now required to plug it. It will be very difficult to get to and a lot of my land will be disturbed. 

Permalink Reply by Finnbear on July 21, 2014 at 4:31am

Evervest?

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