I recently purchased some property in Pittsburg County. On this property are two long abandoned gas wells. I spoke with an individual that operated the wells many years ago who told me that the gathering system was shut down a long time ago. The wells show up as ‘OR’ or Orphaned on the OCC. When one of the wells was drilled, the operator ran a gas line to the house and supplied gas to the house for years. When the gathering system was shut down the homeowner brought in a propane tank. I told the former operator that I was interested in whether I could re-start the gas supply to the house. He told me that when a well is orphaned there is an opportunity for the property owner to put up a small surety bond to take over a well in that situation. Has anyone had any experience with this before? And if possible, how are the mineral interest owners impacted if gas is only supplied to the house?
Your situation screams LIABILITY. That’s why operators stopped allowing gas to homes years ago.
Totally agree with Todd. BIG LIABILITY. Also, many of the leases have a clause that says there is free use of gas on the property, so mineral owners with that clause will not get paid. Old clause for an old reason.
So what do you all mean by BIG LIABILITY?
House blows up. You owe mineral owners royalty.
Plus, the well may be damaged after this long and there could be an explosion danger there. Only certain gas types can be run to a house and since they already converted to propane, going back to methane may not be compatible with their stove and dryer, etc. Huge safety concerns, permitting issues, etc.
You also need to consult with an Oklahoma oil and gas attorney to make sure that by reopening the well, you do not become liable for all expenses relating to the well, including plugging costs, environmental damages, etc.
If I understand your situation correctly, it is your land and your house. If so, the only liability is to yourself. It is actually pretty common ( at least in Montana where I live) for landowners to take over a well for domestic use. I’m not familiar with Oklahoma law, but you will most likely have to put up a bond. Check with the Oklahoma Comission.
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