Getting out of an OLD LEASE?

I currently have a lease from 1988 that includes two wells that are on my property. These wells are not producing and in fact the above ground distribution pipe has been cut by the township mower along the road. Basically if these wells were producing, the gas is going nowhere. No royalties nor shut-in royalties have been paid since 2004. The operator of the well is even falsifying information to the ODNR saying that they are producing 20MCF per year per well to keep their status as producing, even though they are not paying royalties on this "phantom" gas.

 

So i guess my question is: How do I void this old lease, get rid of this negligent operator, and begin the process of negotiating a new lease?

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Permalink Reply by Interested Party on August 29, 2011 at 10:31am

 I believe you might explore filing an "affidavit of non-production" if you have not received royalties or receive gas from the well. This is a sworn statement of fact, given by the lessor, whereby the lessor states under oath that he or she has not received any royalties or other payments from any source, there have been no surface operations, and that to the best of his or her knowledge and belief, there is presently no producing oil and gas lease in place.

Permalink Reply by Matt Hissom on August 29, 2011 at 2:50pm
I did file an affidavit of non-production and had it sent by certified mail in February, The company replied saying the would contest any forfeiture of the lease. They also stated in their affidavit letter that all shut-in royalties were paid up to date, when in fact they are not. This company has completely ignored the the terms of the lease and I can prove that, but I would rather not waste the time or money in taking them to court which from what I hear can be quite lengthy. Just looking for a quick solution to get rid of this old lease. Surely someone else out there is in the same situation I am in. Thanks for any good advice!
Permalink Reply by Nancy Mosley on August 29, 2011 at 3:09pm
I think the thing to do with the Affidavit of Non Production is to file it with the Clerk of the county where the well is located. You could call the county and ask about this. Then it is public record that you are stating that there is no production  etc.
Permalink Reply by Matt on August 29, 2011 at 2:50pm
is the company equity? i am in the same boat. i also noticed a few things in the original lease. the lease was good for 3 years. in is dated 1972. They drilled in 1983 at their own will said that there was some clause that let them drill and my grandparents didnt have the money do get an attorney. COULD THIS VOID THE WHOLE LEASE?? my parents in the mid 80 tied into the line and by 1990 the well was dry. it would produce a high pressure but no volume. The company then unhooked our line b/c there was no volume. I wonder if I can get this lease removed.

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