Wednesday, December 16, 2009

You find oil on your property. The oil field is huge and beyond your property. Can others drill this field?

What if the oil field is huge, but no one else has discovered it? Can the neighbors tap the field from their own property? Does the oil field belong to the original discovering party?You find oil on your property. The oil field is huge and beyond your property. Can others drill this field?
Where I live (Ohio), you need a minimum of forty acres in order to drill a well. Often time, this involves multiple property owners.


Assuming all property owners are in agreement, they would divide 1/8 of the revenue if oil or gas is produced. (The company that drills gets the remaining 7/8).You find oil on your property. The oil field is huge and beyond your property. Can others drill this field?
You would have to file a claim. When you buy property, you only own the surface soil. The government still own all mineral rights on the property. If you find oil the government would auction off the mineral rights to the highest bidder.
there are two types of land deeds or actually three. one says surface only one says sub-surface only and one says surface and sub-surface. so who ever holds the deeds that specify sub-surface is free to drill and pump oil until it runs out.

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