Anyone have problems with old outdated leases tying up their property?
We have about 930 acres in Trumbull/Ashtabula county. The property has 4 old wells that have not been producing much over the past 10 yrs but they all have leases from the 1960's-1970's even back to 1915. 3 wells are with Enervest and 1 is with Northwood. Because these old, outdated leases make our property "tied by production" we can't take full advantage of the shale play. On top of it, I read a press release about Enervest and Chesapeake partnering up on the acres in the area. As a result, I doubt they would be willing to give up the current leases.
Any suggestions?
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Replies to This Discussion
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Permalink Reply by Tanya Gabriele on
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Our wells were drilled by Eastern Petroleum. When they lost their productivity, the company sold them to us. I understood--from other articles posted on this site--that leases become void after wells are no longer producing. It sounds like your wells are still producing.
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Permalink Reply by 0i7okn54zwbdo on
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I suggest contacting a lawyer. Let them sort it out.
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Permalink Reply by Michael Lawrence on
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why waste the money... the oil companies have been paying the land owner and probably providing free gas to house, barns and much more... quit feeding the sharks...
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Chesapeake owns you.. saving grace is that if they drill a well on your acreage and or block.. you still have a 12.5% interest in the well.. which could mean that 1 or 2 wells sites get drilled on you and you reap the benefits of a min of $50 per acre per day.... thats not shabby for thinking you got screwed.. let's see. 930 acres times 50$ a day =46,500.. you should be asssisting these companies to complete a drill all day long... and that is just one well head..!!! you could end up with as many as 16!!!!!!! people have no idea what is coming.....
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Permalink Reply by Oil and Gas nightmare on
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http://www.gasandoillaw.com/forfeiture-or-expiration/
Check this out for a start..dont hire a lawyer yet, you need to know a lot more before you decide you can even battle then for it... got another link in just a sec.. :)
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Leases fall into two broad categories: “or” leases and “unless” leases. “Or” leases obligate the lessee to drill or to pay “delay rentals,” but if the lessee does neither, there is not an automatic termination of the lease. By contrast, the “unless” lease says that if the lessee does not drill by a certain time, the lease will terminate unless the lessee pays delay rentals. Nonpayment and nonproduction will result in forfeiture.
this will help you when you read your leases that hold the property
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