Legal advice

We have 3 gas wells on our property in SE Ohio. 2 are maintained by B and E, the other by Enervest. Both leases expired upon my Mothers death in October, 2014. B and E continues to pay royalties but it's not much of course. Enervest will not pay royalties because we do not have a lease. I feel we have no negotiating power to consider tying ourselves to another lease. No royalties on the Enervest we'll have been paid since April, 2015. Not sure what to do about Ener est. any thoughts would be appreciated. Thnx

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Permalink Reply by G.H. on June 29, 2016 at 3:05am

Why would the lease expire with your mother's death?  Normally that property would transfer to her spouse/children/whoever she left it to, and that lease would remain in force.  It sounds like the lease would be held in force by the producing wells.  If Enervest is producing, they should be paying royalties to whoever your mother's property transferred to when she died, assuming there is a valid lease in effect.

Permalink Reply by Nancy Mosley on June 29, 2016 at 4:00am

Did your mother's will or other legal documents get sent to the county and to the companies who held the leases? Perhaps this transfer has not been completed and there is some royalty money being held for your mother's heirs.

Permalink Reply by Nowheregirl on June 29, 2016 at 5:06am
Yes. My lawyer spoke with Enervest and with the judge. I was told that Enervest wanted it to go to probate but everything's in writing and the well was producing.
Permalink Reply by Paul Butler on June 29, 2016 at 4:28am

If her mother had a Life Estate.

At Ma's death the royalty interest would then vest in the remaindermen by Operation of Law. 

Permalink Reply by G.H. on June 29, 2016 at 4:36am

That's true.  But I still believe the lease would not expire like she stated.

Permalink Reply by Nowheregirl on June 29, 2016 at 5:00am
Thanks for chiming in. Our farm is in a trust. My great grandfather had a clause put in the original leases that stated that the leases would expire upon his grand children's death. My mother left the farm in a trust for me and my other sisters split the $ from the sale of her other 2 properties. The farm was rental property for 60 years before my husband and I started working on it in 1990. We've lived here since 2000. What is a remainderman? And why would B and E still work on the wells which are producing and Enervest won't. And yes, the wells were producing. Thnx for your help. I haven't got much help from my lawyer.
Permalink Reply by G.H. on June 29, 2016 at 7:11am

That's an interesting stipulation to have in a lease... not sure I have heard of that.  I would guess you might need an experienced oil and gas attorney to get to the bottom of this one.  Normally a producing lease stays in effect until all production has ceased.  Most likely the operators will not give up without a fight, after all, it's going to cost them something to either stop production and remove their equipment, or negotiate a new lease with you.

Permalink Reply by Nowheregirl on June 29, 2016 at 7:38am
Figure the original lease is very very old, sold by my great great grandfather. I can't remember the exact date and my attorney ha the document in his files. The original leases cost the gas company $1 if that tells you anything. My understanding to date is that they won't do anything without a new lease (unlike B and E who continue to produce and pay out royalties). It just seems strange but I have a call in to Enervest as well as my attorney. Thank you.
Permalink Reply by Nowheregirl on June 29, 2016 at 5:01am
What are the remaindermen? Thnx
Permalink Reply by G.H. on June 29, 2016 at 7:13am

Remaindermen come into play when there is a life estate i.e. someone sells or gives the property to someone else with the stipulation that they (person granting the property) have the right to use it until they die.  The remaindermen are the people who the property goes to after that person dies.

Permalink Reply by Nowheregirl on June 29, 2016 at 7:30am
Thanks. That would be the trust (me). I'm trying to get to the bottom of it. My attorney has not been helpful.
Permalink Reply by Nowheregirl on June 29, 2016 at 5:07am
There are no royalties going into the trust as they should be in my opinion.

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