Starting in 1957 when my family bought a farm in West Virginia, there was one well of which we knew. On our deed, we were supposed to get a percentage, one-fourth of one-eighth of the minerals. The oil company was named Hope Gas; they ignored dad's letters and did not pay him anything, for around six months. Dad finally drove to their home office in Clarksburg where they told my father that instead of receiving a percentage, as stated on our deed, we would only get a flat-rate for the derrick being on our property. We never were paid for the minerals even though the deed called for it. The flat-rate for the derrick we were paid quarterly was $12.50 per every three months (only $50 per year!). Unbeknownst to my family and me, there was also another oil company, which had also drilled a well using the same lease. Years later as I prepared to sue Dominion, which used to be Hope Gas, I found that Carter Oil also had a well all those years. Carter Oil is now Exxon. We never received a penny from Carter Oil or Exxon. 192 acres ( two wells, only one on which we received a flat-rate of $50 per year and the other of which we knew nothing). In 1960, my father purchased ten more adjoining acres. My father knew there was a well because his friend who owned the property and was letting it go told him so; consequently, he told Hope Gas that he knew of a well on the ten acres. On that well, dad received around $15 per month for years and received up to $25 per month in 2001. When dad gave the ten acres and mineral interests for 202 acres to me, the payment for the well on the ten acres somehow doubled to $50 per month. We have always wondered why the money suddenly doubled right when my father transferred his interests to me. I am posting a petition that I would also like for you to read and sign. We lessors and landowners need to win back our constitutional rights. The West Virginia Supreme Court and the oil companies have made all of us tenants on our own property while they make all the money; we lessors and landowners get chump change while they ruin our property with their wells, trucks, pipes, and waste water disposal areas. While suing Dominion, I discovered that there are a total of ten producing wells, but they were only willing to make a payment on one. That's why I sued them. There are a total of four oil companies (Dominion, Exxon, Carbon Black, and Eastern American) who drilled wells. I could only sue one oil company at a time. I sued and lost. Moral of this story is do not sign a lease with any oil company, they cannot be trusted. Leases give all legal rights to the oil company, you have effectively given away your property! Now they tell you what you can and cannot do with your property while they can do anything!
I feel for you, but I find it difficult to jump on board because although I understand your frustration, I don't understand the situation very clearly. I also am not clear what you hope to accomplish with the petition.
On the other hand, I agree that it is very hard to sue a gas/oil company because they have money to out last your legal effort and they are savvy in the legal process (to their advantage) to draw it out which also adds costs to you (a lessor).
However, in simple terms, one could imagine that your acreage with multiple wells could yield significant revenue over the past 50 years. All of this makes me think you need to get a referral to the best gas/oil attorney you can find and have a consultation (no charge) to review your case. If your case has merit, it is likely that a good attorney would take it on contingency - again, simply assuming 50 years of essentially no royalty payments to speak of. I mean if an attorney was to win they would get a percentage or some such arrangement.
But again, I can't understand your situation in detail (although it probably wouldn't matter much anyway since I am no expert).
Back to the blog and petition, that approach may be more suitable for a large group of people that have been defrauded in some manner and the petition process may be used to "inspire" the attorney general to investigate.
Years ago I watched a report possibly on 20/20 ? of the trouble that W. Virginia mineral owners were having in getting their royalties. The operators were supposed to have accounts for the mineral owners with their back royaltys, when someone finally won their lawsuit the account was empty and the operator had never submitted production reports to the state. I have no idea how you would untangle a mess like that. You certainly have my sympathy.
I am talking about a large group of people that have been and are being defrauded. We are called lessors and landowners.
Wilsontownship said:
Hi Marie,
I feel for you, but I find it difficult to jump on board because although I understand your frustration, I don't understand the situation very clearly. I also am not clear what you hope to accomplish with the petition.
On the other hand, I agree that it is very hard to sue a gas/oil company because they have money to out last your legal effort and they are savvy in the legal process (to their advantage) to draw it out which also adds costs to you (a lessor).
However, in simple terms, one could imagine that your acreage with multiple wells could yield significant revenue over the past 50 years. All of this makes me think you need to get a referral to the best gas/oil attorney you can find and have a consultation (no charge) to review your case. If your case has merit, it is likely that a good attorney would take it on contingency - again, simply assuming 50 years of essentially no royalty payments to speak of. I mean if an attorney was to win they would get a percentage or some such arrangement.
But again, I can't understand your situation in detail (although it probably wouldn't matter much anyway since I am no expert).
Back to the blog and petition, that approach may be more suitable for a large group of people that have been defrauded in some manner and the petition process may be used to "inspire" the attorney general to investigate.
The oil companies will tell you anything to get a lease signed and then they rob you and ignore you. They have the courts on their side. If I could get enough signatures to get the W.Va. governor and the W.VA Supreme courts attention, they might have to acknowledge that lessors have legal rights after all.
r w kennedy said:
Years ago I watched a report possibly on 20/20 ? of the trouble that W. Virginia mineral owners were having in getting their royalties. The operators were supposed to have accounts for the mineral owners with their back royaltys, when someone finally won their lawsuit the account was empty and the operator had never submitted production reports to the state. I have no idea how you would untangle a mess like that. You certainly have my sympathy.
"On our deed, we were supposed to get a percentage, one-fourth of one-eighth of the minerals."
"...we would only get a flat-rate for the derrick being on our property."
It sounds like the language in your deed is referring to mineral rights AKA minerals in place. Meaning with your surface rights you received 1/32 interest in the minerals under the surface (or 3.125%). If these were already leased when you bought it and the lease called for a flat-rate royalty, you're only entitled to a percentage of that payment.
The rest of your comments do imply there's quite the can of worms here. Good luck!
Once oil companies have lease they can drill and never tell you. You might buy property, oil companies do not have to tell you or pay you for wells already there! I even sued and still no justice! Do not sign lease, do other things to make money off your land. Build condominiums or raise chickens, anything and you will probably make more money. I should know, from 1957 and still going! After oil company leaves we will not be able to keep paying taxes, the land is unfit for anything but drilling. We will have to let the land go for unpaid taxes. Do not end up like me!