Right to use the gas on my property?

Just wondering if anybodycould answer a question.I have an old well that is in service 30 feet off of my property and was wanting gas for a new hunting cabin I'm gonna have built in spring.Would I have any right to the gas being so close to my property?

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Permalink Reply by Steven B Pinkerman on September 15, 2013 at 3:56am

I will do that,thanks.

Permalink Reply by Calla on September 15, 2013 at 4:14am

http://www.ohiodnr.com/Portals/11/oil/pdf/oil_gas_faq.pdf  The bottom of page three has a chart about well depth, and minimum acreage required.   Any well deeper than 4000 feet requires a minimum of 40 acres in the production unit, and the well itself must be 500 feet from the boundary of that unit.  

If the well is closer than 500 feet to your property line, the original production unit would contain your property.  It is the responsibility of the mineral rights owner (that could be you) to notify the company that maintains the well, and claim your royalties. I lost 13 years of royalty checks for not knowing that bit of information.  All of this is based on the assumption that your property is in Ohio. Other States could be completely different.

Permalink Reply by Steven B Pinkerman on September 15, 2013 at 4:22am

Thank you for the information,This is what I'm looking for.

Permalink Reply by Jim Litwinowicz on September 15, 2013 at 12:23pm

Other states are indeed different. In Pa they have what is the Rule of Capture.....meaning they can drill close to a boundary and any gas they get is theirs and they only have to pay royalties to what ever land is in the drilling unit.  It is so prevalent  in Pa that many leases even have a clause that if you lease with company A and Company B drills a well near your boundary, your lease will require Company A to drill an offset well to prevent Company B from capturing your gas and/or oil.

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Permalink Reply by Brian Powers on September 16, 2013 at 2:40am

Jim -

other states in the mid-continent (Oklahoma comes to mind) are also rule of capture states. They use the law to drill way too many wells (economic waste) than needed to drain all the gas they can. OK is a very pro-development and pro-independent  state and I've seen the corporation commission turn a blind eye to economic waste.

 

Free domestic gas was common in the Kansas leases when I worked there. The barns and chicken coops were also heated for free. The worse case of abuse that I saw involved an eight unit mobile home park stealing gas from a well - A tap for each lot. Once that illegal distribution was discovered and removed, a marginal well became productive and profitable again.

 

Brian

Permalink Reply by Mark McGrail on September 15, 2013 at 12:43pm

Is this Ohio ?

Permalink Reply by Steven B Pinkerman on September 16, 2013 at 7:42am

Yes,graysville,ohio

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