Falsifying Production?

I think that the oil company that is holding our oil rights on production may be falsifying their production.  Is there a way to check that?

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Permalink Reply by John Goold on March 27, 2013 at 2:40pm

If the pump isn't going should there still be pressure?

Permalink Reply by harry frank on March 27, 2013 at 2:45pm

should be  , you say it has a pump jack so how much oil does it produce ?

Permalink Reply by John Goold on March 27, 2013 at 2:47pm

They are claiming it produces a few barrels of oil per year and a few hundred units of natural gas each year.  However, nobody has ever gone to get the oil over the years, there have been no tanker trucks out there at all.

Permalink Reply by harry frank on March 27, 2013 at 2:52pm

john maybe you should ask a attorney , this has a bad smell especially if you have alot of land

Permalink Reply by John Goold on March 27, 2013 at 3:02pm

We have two parcels one in Salem Township and one in liberty.  Salem Township has 90 acres and Liberty has 22.  The oil company just happens to maintain a well on each.  We had an attorney but two suspicious things happened.  First we protested that no large vehicles had been to the land and within 24 hours one went there and then we tried to get him to take action and paid him $1500 to do research etc and gave him information.  Within one week he dropped us and sent us back all the money.

Permalink Reply by John Goold on March 27, 2013 at 3:04pm

It seems like he just got what information he could from us and then dropped us.  May have gotten a job from the company that is holding our land.

Permalink Reply by harry frank on March 27, 2013 at 3:08pm

gee john that was nice of the attorney to give you the money back , as i said something smells ! I would get a different attorney and make a call to the Ohio attorney general office

Permalink Reply by John Goold on March 27, 2013 at 3:12pm

We need another attorney, one can private me if they want to take a look.

Permalink Reply by John Goold on March 27, 2013 at 5:42pm

I will let you know how this is going, it may be worth also corresponding between people who are all HBP with this same company.

Permalink Reply by harry frank on March 28, 2013 at 1:27am

John

Reply by ShaleAdvice (Steven C. Townsend) 11 hours ago

Ron,
My email is stownsend@shaleadvice.com and telephone is 412-901-7352. Let me know when it is convenient and I will set
Permalink Reply by Billy Park Whyde on March 28, 2013 at 12:54pm

"Suddenly another company acquired the lease and suddenly both wells recovered." Wells can paraffin up but can be cleaned to restore production. No magic

Permalink Reply by Gunner Ostergard on March 28, 2013 at 6:18am

It is VERY important that in the past you can document a period of time when there was no production.  According to this court case,  this make the lease "at will" allowing the landowner to termintate it when they want to.

 

Thank you Houston Harbough for posting this on your web site.

 

http://www.hh-law.com/News/20111103-Non-ProductionDuringSecondaryTe...

 

 Absent an appropriate savings clause in the lease itself, periods of non-production during the secondary term will likely automatically terminate the lease. Landowners and gas producers alike must carefully review their respective leases when confronted with any cessation of production during the secondary term. As the Wilson decision illuminates, simply restoring production may not be enough to save a previously non-producing lease.

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