Natural Gas company won't pack back lease payments.

[jammine]

Natural Gas company won't pay back lease payments.

Ohio

I recently found out after purchasing in my home 14 years ago that there was a Natural Gas storage lease for the property. A nearby compression station stores gas underground over hundreds if not thousands of acres around the area. They sent me a letter a few weeks ago asking me to give them my SSN so they could start paying me the small yearly rent. When I asked about the previous 13 years that I have owned the house, they said they have been paying the previous owner every year until now. They said it was not their problem and there was nothing they can do about it. My question is, "who do I go after to get the back rent?". Thanks.

 

[OHRoadwarrior]

Since their contract was with the previous owner, you would need to obtain a copy of the contract and also look at your contract and title to see whether the prior owner defrauded you in title conveyance.

 

[PaulMass]

Your best best is to take a copy of the lease to an attorney to determine your rights. It's possible the gas company violated the terms of the lease by not paying you, leaving you free to evict them (something I'm sure they will properly address).

 

[OHRoadwarrior]

It is not the current lease that dictates. It is the one before, along with what the purchase contract said regarding mineral rights.

Your best best is to take a copy of the lease to an attorney to determine your rights. It's possible the gas company violated the terms of the lease by not paying you, leaving you free to evict them (something I'm sure they will properly address).

 

[jammine]

Thanks!

I have a copy of the lease from the previous owner. Looks like I'm headed to the lawyer's office.

 

[LdiJ]

It is not the current lease that dictates. It is the one before, along with what the purchase contract said regarding mineral rights.

This has nothing to do with mineral rights. The lease is for storage of natural gas. That isn't a mineral rights issue.

 

[OHRoadwarrior]

Unless the state has legislated differently, the gas is part of the subsurface shale, as is oil. Along with coal they are considered a mineral right.

This has nothing to do with mineral rights. The lease is for storage of natural gas. That isn't a mineral rights issue.

The mineral estate of the land includes all organic and inorganic substances that form a part of the soil. Exceptions include sand, gravel, limestone, and subsurface water—which are normally considered part of the surface estate.

http://en.wikipedia.org/wiki/Mineral_rights

 

[LdiJ]

Unless the state has legislated differently, the gas is part of the subsurface shale, as is oil. Along with coal they are considered a mineral right.







http://en.wikipedia.org/wiki/Mineral_rights

Its not a mineral right issue because nothing is being EXTRACTED. Its only being STORED. The lease isn't for the right to extract natural gas its for the right to store natural gas that the company already owns.

 

[OHRoadwarrior]

Point taken, I apologize for not getting the core of the post. The issue is still similar what did the property transfer docs say? It appears you want to go after the former owner.

Its not a mineral right issue because nothing is being EXTRACTED. Its only being STORED. The lease isn't for the right to extract natural gas its for the right to store natural gas that the company already owns.