Jackson County, WV - Oil & Gas Discussion archives

Jackson County, WV oil & gas discussion group. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.

I'm wondering if there's anyone that has leased their property in Jackson County, WV recently.

We've been under lease for 3 yrs but have no idea when any production

will start. We were told 2 yrs ago that wells had ben drilled and fracked

once but were not producing. bobnpatti@att.net

@Patricia - I'm surprised that wells were drilled and fracked, but haven't been producing. Can you verify for yourself that nothing is being produced from them? For example, can you check the meters on the well and see if they're moving, or can you see that there is no pipeline heading away from the well that can carry gas? It's not unheard of to drill a well before building a pipeline to carry the gas to market, but they should at least be working on bringing one out to the well.

Unfortunately, we live in Mckinney, Texas and can't verify anything. When

they first leased from us, we talked to the only contact we have which is:

Carter oil & Gas in Spencer, who gave us that information. (Andrea G. Holly @ 304-988-9599) Leases are: Tax map 14 Parcel 5,100 ac and

Tax map 14 Parcel 4, 128 ac. Any information would be helpfull........

these mineral rights have been handed down for generations but have

never produced a dime.

Has Carter Oil given you a reason why they aren't producing?

Stated reason was insufficient pressure.

Are they paying you a shut-in royalty?

No, Sir.........only the leases. I don't know what shut=in royalty is.

Shut-in royalty is an amount the oil and gas company can pay to keep the lease alive after the primary term. How long was the primary term of the lease?

It's been year-to-year....a renewal of the original leases.

It sounds like Carter probably wrote their lease so that they can unilaterally keep the lease alive from year to year, forever. There's probably not much you can do. I could take a quick look at the lease for you and see if there's anything that jumps out at me that can be done to break it.

What is the benefit of breaking the lease?

You could lease to someone else. I just thought of something. Just in case, you can check the WV DEP website to see if they’re reporting any production to them. It wouldn’t be the first time a company had lied about production.

I inherited the mineral rights to a property along the Ohio River in Jackson County from my mother. I have tried to find out more information about the property and get an valid appraisal. I can't seem to find anyone interested in taking on the job. I would also like to know if there is any current drilling activity in the area. It is difficult for me since I live in Connecticut. Can you recommend someone who could give me an honest appraisal? Thanks

Right now there's not a lot going on in Jackson County. I know there was one company developing oil. The big thing going on right now in West Virginia is development of the Marcellus Shale for gas. You've probably heard that. But Jackson doesn't seem to be a hot spot. Maybe a couple years down the line it'll become more interesting. The richer plays in Harrison and Doddridge, and north of the Ohio, will get developed first, and then they'll spread out towards Jackson County.

When someone does approach you about leasing, make sure to not take the first offer. Also, I'm an attorney and do a lot of consulting on oil and gas leases. Contact me and I'll make sure you get a good lease.

Thanks for the response, Kyle. Actually, we did receive an unsolicited offer to sell the rights - $7500 . The total property is 145 acres but we don't own the surface. Sounds like the offer was a low-ball and we should hang onto the property. We would appreciate knowing if you hear of activity in that area.

I always tell people to hold on to their minerals. They'll be worth something someday. That said, if you really need cash now, you do what you have to.