Can a gas company sever my tract from the original lease without my consent?

Full question:

I own a 12 acre tract, surface and oil and gas the tract is a divided portion of a 194 acre tract that has an existing lease in WV. There are two wells existing on the 194 acres that are not on my tract. I don't receive royalty from these wells. There are no pooling agreements in the original lease. The gas company wants me to sign a pooling agreement that states that all tracts will be merged and treated as if a well or wells were drilled on each tract. Does this give me a portion of the royalty for production on all parts of the 194 acre tract used in separate units. They have two pads under construction for horizontal wells on the 194 acre tract. They have signatures from all of the owners of the tracts within the 194 acres except mine. There permits show the use of parts of the 194 acre tract pooled with additional tracts outside of the 194 acre tract. They claim that without my signature that they can sever my portion of the tract out of the original lease and use the signed portions for creation of units involving tracts outside of the 194 acre tract. Can they actually do this or would it breach the original lease without the signatures of all of the heirs or assigns of the divided 194 acre tract.

Answer:

The binding nature of an oil, gas, and mineral lease on heirs and assigns depends on the lease's terms, including its duration and the impact of the lessor's death. Some leases may transfer to the lessor's heirs, while others may expire upon their death. The terms of the lease and any pooling agreement will determine your royalty rights.

Typically, one party cannot unilaterally change a contract without the other party's consent. However, the lease may contain provisions allowing for the severance of property interests, or you may need to seek court intervention for partitioning the property.

A partition action is a legal process to divide property among co-owners. It can arise when there is a dispute about how to divide property or whether it should be sold. Any co-owner can file for partition, and the court will determine how to execute it, often ordering a sale of the property and dividing the proceeds.

In your case, if the gas company attempts to sever your tract from the original lease without your consent, it could potentially breach the lease, depending on its specific terms and conditions. It’s advisable to consult a local attorney who can review your documents and provide tailored guidance.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

The three streams of oil and gas typically refer to the production, processing, and transportation phases of oil and gas operations. Production involves extracting crude oil and natural gas from the ground. Processing includes refining crude oil into usable products and treating natural gas to remove impurities. Transportation is the movement of these products to refineries or distribution points, often through pipelines, trucks, or ships.