Spud fee and monthly payment in lieu of free gas

Although the well head is on our neighbors property, our property was used as part of a permanent well pad and we're hoping someone knows whether or not we should be entitled to the spud fee and the payment in lieu of free gas that we have in our Lease. Without our property, they would have had to relocate the well or would have been unable to drill in it's current location.

Any thoughts or ideas are greatly appreciated.

Mary

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Permalink Reply by Jack Straw on October 8, 2014 at 5:23pm

This is the type of question that should be directed to a nearby Attorney with genuine Oil & Gas experience ... after that individual reads the specifics of your lease and is made aware of the exact circumstances of the situation. If you post your State and County, perhaps someone reading this thread might suggest some worthy Attorney that you might consult.

I do not mean to dodge your question; but (in my opinion) your situation requires legal talent familiar with the laws and case law of whichever State you reside.

All IMHO,

                 JS

Permalink Reply by Mary on October 8, 2014 at 10:10pm

Thank you, Jack. We did actually present these questions to our O&G Attorney and she is looking up case law. We are located in Sewickley Township, Westmoreland County, PA. I appreciate your input.

Mary

Permalink Reply by James Foster on October 9, 2014 at 9:05am

Do you know the law in PA about free gas?  In Ohio only the landowner with the actual well head... not pad gets free gas.   I would imagine since only the landowner where the well head is would get in lieu of payment here in Ohio.  The pad fee should be paid out proportionally to the landowners who are bearing the burden of the pad.  All IMHO.

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