I just found this site and I am located in Tennessee. I have been looking over the mineral interest of a land company who has oil and gas activity in Putnam, Morgan, Fentress, White, and Scott Counties. There have been several leases on the properties over the years and several operators, some of which are no longer around. That being said, there has been quite a mess left to be cleaned up and several questions along the way. Some of the old operators that are still around try to bully newcomers and make their own rules. I am fairly well informed as to what oil and gas laws and regulations exist in Tennessee and what the State Supervisor of this field expects. Tennessee is way behind other states in this area, so there is a lot of “gray area” that no one has the answers to. I am also aware that what is in the lease would apply as well. I have already learned a lot, but I need to ask a big question that no one really has a straight answer for.
- Old non-producing wells (what I would call “Abandoned”) - Who is responsible for the well and who has the interest in the well? Some oil guys say they have all the rights even after their lease dies. The State says the operator has the responsibility of the well (environmental damages that may or may not arise) and to plug the well, and the mineral rights revert back to the owner, not the operator (the operator loses all right to the minerals). As I understand it, once a lease expires, per its terms, all assignments expire with the lease (example: If 15% ORI is assigned to John Boy and 50% WI is assigned to Jim Bob and Joe Blow is holding the lease and fails to send in the AMR for the year and was given written notice of failure and still does not pay, then the lease expires along with John Boy’s and Jim Bob’s interest).
All comments and remarks will be helpful.
I am also looking for other Tennessee Royalty Owners. Thanks.