Court Decisions in Ohio in re: leases with wells 'in production' - looking for information

I will apologize ahead of time if I am not as on top of this particluar issue as I should be, and if this forum has already covered it at length. My simple searching was limitedly helpful.

Does anyone know if Ohio courts have made any rulings fore or against a landowner who has brought suit challenging an Oil & Gas Co. lease in either or both of these areas?.....

    Area 1 - What does "a well in production" really mean?  Does the well have to be commercially profitable, or will token amounts of product produced validate the lease and keep it active.  Who decides what is commercially profitable?

    Area 2 - My lease was executed by my grandfather in 1981.  At that time NO ONE (as far as I know) gave any thought to deep wells and horizontal drilling.  Has any court ruled on excluding deep well (mineral) rights from existing leases where there is NO mention of specific formations permitted to be explored/tapped/drilled or excluded from exploration/tapping/drilling, NOR, language as to depth limitations/exclusions?

Thanks in advance for any help you can provide in this area.  D.B.

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0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on June 8, 2013 at 5:32pm

The problem John is that they already did lease.  And it absolutely is an invitation for more government because who else will determine that an old lease is "obsolete"?  That is an arbitrary determination made by a government body and I for one am wholly against it.  And this is coming from someone in Mahoning County who is HBP.

2z248p19vqnh9Permalink Reply by 2z248p19vqnh9 on June 8, 2013 at 5:59pm

NO. Marcus...all things CAN (and WILL) 'change' - THAT is the only 'constant' that is of FORTUNATE ADVANTAGE in America.

You'll see...as one light lights another, nor grows less - so nobleness enkindles nobleness. Even YOU 'have a light', Marcus.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on June 8, 2013 at 6:13pm

Contract law changes often, contracts signed and enforced change rarely.  Be careful what you ask government for, they may just give it to you.

2z248p19vqnh9Permalink Reply by 2z248p19vqnh9 on June 7, 2013 at 11:58am

SURE WOULD, PAUL...BUT 'follow the money' - who is really 'lining WHOSE pockets'...THAT is the over-riding DRAGON. *George & the Dragon.

As one light lights another, nor grows less - so nobleness enkindles nobleness.

Anything worth doing is worth doing RIGHT! ENDEAVOR, simple endeavor.

2z248p19vqnh9Permalink Reply by 2z248p19vqnh9 on June 7, 2013 at 11:55am

OK, Markus - KNOW that ANYTHING & EVERYTHING IS possible. We BECAME AMERICA - USA...didn't we?...so what's so tough about THIS? NOTHING. As far as 'State Legislature passing a new law' - that's the easy part...JUST DO IT! *CHA-CHING!! Dollars & cents, baby! *It's what makes the WORLD 'go round'! Indeed it IS!

***IF they can do this with the *CONSTITUTION...WHAT law CAN'T 'be changed'???

The SAUDI's 'upset the applecart' & THEY survived...and the G/O Co.'s did...and it goes on & on & on.

Things CHANGE. AMERICANS WERE 'stolen from'/ PURPOSELY DECEIVED by the same industry brought to it's heights of 'valor(?)" by the Rumblefeller's...the same duds that were intertwined tightly into UN endeavors - Agenda 21?...craziness/gadflies-x10PLUS 'plaugues' upon AMERICA...right under their noses...

EVERYTHING can be CHANGED...CHANGE is the master of all. The more things CHANGE - the more they 'stay the same'...when feet run - they *RUN to freedom.

As one light lights another, now grows less - so nobleness enkindles nobleness.

The Ascent of Money Episode 2: Bonds of War | Ascent of Money | PBS

2z248p19vqnh9Permalink Reply by 2z248p19vqnh9 on June 9, 2013 at 5:29am

MarcusG. - KNOW that *I DO understand and am in complete agreement with the 'careful what you wish for'...concerning government. They are the ultimate in 'give an inch, take a MILE' mental make-up.

I DO know there are two sides to every coin. Really a bitter taste of ***if you do, ***if you don't. CROSSHAIRS!

Sticky Wicket, indeed - just plain nasty - every way you slice the pie, simply nasty.

As one light lights another, nor grows less - so nobleness enkindles nobleness.

Tough cookies to swallow. Nobody likes me, everybody hates me - guess I'll go eat worms. Big fat little ones )?_...little strong ones (?) oh, how my heart yearns...I don't know all the words right to that silly little jive, but sometimes life feels JUST LIKE THAT, eh?

Rob Peter to Pay Paul...?

2z248p19vqnh9Permalink Reply by 2z248p19vqnh9 on June 7, 2013 at 10:33am

Yes, george m.- the Buckeye State...doesn't need to become known as the Black-Eye State (due to 'black-gold' sock-it-to-me...). No sir.

***GOOD IDEA: ***Lease Reform NOW - it IS the 21st century...but more than that - the 21st century IN AMERICA!! (Pa. - you get with it too!) *Neighbors--Strength in Numbers!

As one light lights another, nor grows less - so nobleness enkindles nobleness.

Permalink Reply by David Dean on June 11, 2013 at 10:33am

Hello, I recommend you get an Oil and Gas attorney. I actually just purchased my well since I had a clause in my lease from the 1980s that defined production. I went to the county seat had someone there help me pull everything I could find on my lease and took it to an attorney. But it cost me near $21,000 in revenues I was not paid, repairs after I purchased my well plus monies I paid the attorney and the lease owning company and title search. We settled out of court but court was my next step.  However, I would recommend finding a knowledgable person to inspect your well (Ask your attorney ) before you purchase your well if you go that route and have any repairs done before you purchase your well. I did not and wishe dI would have since I had a leak. I have learned so much even just since April 2013 when I purchased my well. Such as swabbing your well, eliminating fluid so the gas continues to flow, not too expensive upgrades to solve the fluid issue that could happen once you disconnect from the sales line are a few. Good Luck! Also,  I agree with Markus unless you have a production clause. Note the owner of my well would not answer any questions, he told me to go get my lease and that is where I started. It took me about 15 months to get my lease purchased, recorded with the ODNR and turned over to me. But my attorneys fees were well worth it, no pun intended.

Permalink Reply by Bill Bergseid on June 20, 2013 at 5:32am

A 1980 Ohio Supreme Court case, Blausey v. Stein, found a lease that produced 3-4000 GALLONS (not barrels) of oil a YEAR was sufficient to yield paying quantities and in determining "paying quantities" the mineral owner could not put a value on the operator's time to produce the oil.  The idea behind all similar cases is that if the lease is producing, the courts will encourage that production and not second guess the economics.

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