OLD SHALLOW GAS WELLS: Block a Lease?

Can an old un plugged, non producing well,prevent new leasing by another company to the marcellus shale?
I seem to not to be able to get a clear answer .
This lease goes back to 1900.

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Permalink Reply by Brian on June 3, 2011 at 2:09am
My grandparents are in this same situation right now.  Well has not produced for over 50 years.  They have things in the works between the attorney and the gas co with with lease now.  Attorney feels confident in breaking the lease because the well is no longer producing.  See how long they can drag things out trying to get it figured out.
Permalink Reply by Nancy Mosley on June 3, 2011 at 2:10am
What state?
Permalink Reply by e.scott henkins on June 5, 2011 at 2:32am

Both WV and PA. The ine divides the property.

0jw0dsu4txfuvPermalink Reply by 0jw0dsu4txfuv on June 4, 2011 at 2:09pm
Depending on the state and how the lease was written it can hold the property. I know this is hard to take but there are many leases in PA that shallow production has the minerals held.
Permalink Reply by Finnbear on June 4, 2011 at 4:40pm
Have you (or a competent mineral rights attorney) done a complete mineral history on this piece of property? Do you have a copy of the old lease?
Permalink Reply by e.scott henkins on June 5, 2011 at 1:04am
An exam was performed of the original lease and some later documents passed down over genertions.
He noted "some promise "from the information but did not elaborate.
The next request was for a rather stiff fee to continue the investigation
Permalink Reply by Nancy Mosley on June 5, 2011 at 3:03pm

Have you read the original lease and those later documents yourself? There might be something you could see that he saw.

In West Virginia you can file an affidavit of non production at the court house and state how long since there was any royalty payment.

Permalink Reply by Finnbear on June 9, 2011 at 5:37am
Your first step, if you have not done so already, should be to go to the courthouse in BOTH the PA and the WV counties and secure copies of those leases for yourself. Read them and familiarize yourself with both PA and WV oil&gas lease laws. It is not that complicated, and you need to know enough to tell an attorney what he/she needs to do for you. It will be well worth the time you invest to inform yourself on this issue.
Permalink Reply by Jim Litwinowicz on June 5, 2011 at 9:18am

That doesn't sound right.  If the well has not been producing for over fifty years, than the lease should have expired.  Tell them that you are going to call DEP and turn them in for not properly plugging the well.  And I'd go to naturalgasmatters.com and see if they can help you out.  Or call Stonecipher Law and see what they tell you.

 

Ge

Permalink Reply by Larry Bobal on June 9, 2011 at 4:32am
That's when you dig up the lease and read.
Permalink Reply by Sam Douglass on June 9, 2011 at 4:21pm
under the facts as you state them (and assuming there has been no payment from the operator recently and there are no particularly unusual provisions in the lease etc.), it is highly unlikely - but an attorney should read the lease and check out the facts with you.  You will likely have to proceed with a legal action to establish your rights of record.  Most people do not bother because of the time and expense and this may let the the guy with the old well may win.  He probably never bothered to close the well down in the past because of the expense of plugging - or maybe the landowner said please leave the well open so I can get free gas [bad move].  Under current law an operator must plug the well when it is finished producing.  Possibly one of the companies that wants to lease from you will do what is necessary or assume the risk and give you a new lease.
Permalink Reply by Gunner Ostergard on November 29, 2011 at 3:42am

Here is a very good case involving a non producing well in Pa,  judge said that the landowners can terminate it when ever they want when the will is not producing,  Thank you Houston Harbough for the post on your web site

 http://www.hh-law.com/News/20111103-Non-ProductionDuringSecondaryTe...

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