Replies to This Discussion

Permalink Reply by TM on January 16, 2014 at 9:02am

Look up the well on the Ohio ODNR database and see what the yearly production numbers were. What is the name of the well? Who is the operator of the old well and what township is the well located in?

Permalink Reply by Finnbear on January 16, 2014 at 9:20am

I'll echo what T-M said. If there was production it should have been reported to the state and you will find it on the ODNR Oil & Gas website. You should also look into the laws concerning the revocation of a lease for non-production.

Permalink Reply by Den on January 16, 2014 at 3:31pm

From the court case Gardner v. Oxford Oil, 7th district court of appeal:

"The Ohio Supreme Court's seminal decision defining the phrase production
in paying quantities is Blausey v. Stein
, 61 Ohio St.2d 264, 400 N.E.2d 408 (1980):
The term "paying quantities," when used in the habendum clause of an oil
and gas lease, has been construed by the weight of authority to mean
'quantities of oil or gas sufficient to yield a profit, even small, to the lessee
over operating expenses, even though the drilling costs, or equipping costs,
are not recovered, and even though the undertaking as a whole may thus
result in a loss."

1. See a lawyer, do not cash the check.

2. Check ODNR records like the others said, see what was reported to the state.

3. Since they stated they have no accurate records, you should have a good court case to claim no production.

Also note, In the same court case mentioned above, gas provided from a well for the benefit of the homeowner to use, does not count towards production.

"In Yoder I,supra, the Fifth District held that non-commercial use of free domestic gas by a landowner did not constitute production in paying quantities pursuant to the habendum clause of an oil and gas lease."

Permalink Reply by Jeff Polara on January 16, 2014 at 3:58pm

Thanks for all that info. The only detailed records I got as far as production from the company holding the old lease was from may 2012 to July 2013. One month showed 0 MCF for production and the others ranged from 35 to 79 MCF per month. I think these were estimated based on pressure and orifice size and temperature as the meter does not seem to have worked for a long time.  I know one house on the property gets free gas so that does not seem like income producing production, Sheesh the home I live in now uses about 30 MCF per month in the Winter. They also sent me a well summary from the Ohio Division Of Geological Survey that shows annual production from 1984 until 2010 that shows gas production that varies but the description of the well was for 20 acres which now they claim was for the whole 140 acre farm that my 30 acres was part of.

Permalink Reply by Den on January 16, 2014 at 5:13pm

Most shallow wells like this is in a 20 acre unit, but that one well holds all the land in the lease.  Well reports should be from ODNR(Natural Resources), not Geological survey.

find your well on this map:

http://oilandgas.ohiodnr.gov/well-information/oil-gas-well-locator

you can pull up the ODNR production numbers either from the link on the map or by using their well database

http://oilandgas.ohiodnr.gov/well-information/oil-gas-well-database

If you know and can prove the meter does not work (take pictures of the readings over time) you have an even better case. 

Get a lawyer.

Permalink Reply by Finnbear on January 17, 2014 at 5:01pm

Do you have a copy of the lease that holds your acreage? If not, get one ASAP. Where is the well located? I will look up the records and send them to you if you'd like.

Permalink Reply by Paul Martinelli on February 13, 2014 at 3:30am

any update on this.....

 

 

My HBP  wells are producing 50-60MCF/month.....I can't belive there is a profit from that.

 

Permalink Reply by Bad lease on February 26, 2014 at 3:30pm

Don't trust what has been turned in to the odnr database as to i have found out that some producers just have been turning in numbers to show production if there wasent any as in my case and some have been falsifing them even if there was production and of course there is your ocasonal honest one.

Permalink Reply by Paul Martinelli on January 7, 2015 at 2:50am

Jeff......any update?