Old gas lease...

I own a chunk of property in Venango County that has a shallow gas well located on it.  I know that at least the shallow gas is leased and since it was an old lease, I'm sure there's no depth restriction.  I am almost positive that the well is non-producing and we have never received royalties from the well.  I am pretty sure that we can get out of the lease on that fact alone, but knowing my luck I won't.  I was wondering if anyone has heard of or knows anyone who has been able to fight for their deep gas rights even with an old gas lease that doesn't have a depth clause.  Thanks.

Views: 912

Replies to This Discussion

Permalink Reply by Bryan D. Huwar on October 14, 2011 at 1:49am

First a couple of ifs/assumptions: 1) there can't be anything else in the lease that would continue to make it valid other than producing gas, such as gas storage or an oil well (in fact, the well might actually be an oil well), and 2) the well really can't be producing, which you can confirm if you get a gas expert to do an "open flow" test that will tell what, if anything, the well is producing (although you better be about absolutely sure b/c it's a misdemeanor offense in PA to blow someone else's gas into the air).  If these 2 ifs/assumptions are true, then it doesn't matter a darn bit if the lease covers from the surface to the center of the Earth b/c the lease is ended/breached.

Permalink Reply by Tyler Durden on October 21, 2011 at 6:06pm
Bryan makes some good points, but there is no need to hire anybody. Call the DEP and file a formal complaint for an abandoned well on your property.  They will respond and can look to see if production records have been reported for this well and if an operator of record is on file.   Call (814)332-6945 during normal business hours and ask for the complaint coordinator.  Just say you believe you have an abandoned well on your property.
Permalink Reply by Bryan D. Huwar on October 22, 2011 at 12:13am
Good suggestion, Tyler.  That's probably a good place to start.  With any luck that will take care of everything and you won't have to pay a penny, so that's good advice on where to start.  Of course, don't be surprised in the least if someone is still reporting production coming from the well, regardless of whether it's true or not.  Also, in some circumstances the DEP permits production for wells to be reported in the aggregate, in which case obviously no one would know the amount of production coming from your well.  But Tyler's suggestion is a good point, go with the DEP and get the free help and see where it leads you.  Good luck.
Permalink Reply by edward joseph luther jr. on October 22, 2011 at 6:01am
I would consult an Attorney dealing in these matters and really cover many aspects.
Permalink Reply by Gunner Ostergard on October 24, 2011 at 10:50pm

Before you call the DEP,  get the GPS coordinates,  Lat. and Long.  if you can,  this will be helpful to the DEP to look in their records.  Sometimes well will have a tag on them with some information on it,

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service