If you are under a lease do you have the right to see proof that the well is producing? There has been no production reported in last 4 yrs on the DEP site, well is tied into another non related well, I think the reason is so it looks as though my well in producing so in turn I am held by production? there are no production meters of any type on either well and they are joined. If you do have the right and there is no meters how is it proved?
What state?
Pennsylvania, I think.
Nancy Mosley said:
What state?
Yes, most likely Pennsylvania, as the DEP is their version of the Texas RRC. Check the Lease, does it say anything about the Lessor's right to inspect records, logs, etc.? Probably not unless you inserted it in there during the lease-negotiation process, but it's worth a look. There does not have to be ANY production in order for the Lease to be perpetuated, as long as the company is paying shut-in royalties, which in most Leases is restricted to a certain amount of time.
The lease is from 1894 and as you can imagine it is a simple lease, not sure records were even kept at that time, a lot of things were done on the word of a man and a handshake in those days, there is not anything about shut in royalties either so I guess the question remains the same. Thanks for your response.
Pete Wrench said:
Yes, most likely Pennsylvania, as the DEP is their version of the Texas RRC. Check the Lease, does it say anything about the Lessor's right to inspect records, logs, etc.? Probably not unless you inserted it in there during the lease-negotiation process, but it's worth a look. There does not have to be ANY production in order for the Lease to be perpetuated, as long as the company is paying shut-in royalties, which in most Leases is restricted to a certain amount of time.
With no meters, if the other well is producing how would you know or anyone know if you were being paid the correct amount? If you haven't received a payment in 4 years and don't have a lease, can't find the lease recorded and the present lessee won't provide a copy, I would start trying to break my minerals free, the lessee would at least have to provide the lease if you filed suit. If neither side has the lease, the court may well decide that 4 years without production or payment has terminated the lease. If you think the minerals are worth the legal expense, they may not be worth it, I would consult an oil and gas lawyer.