Grant Twp. seeks royalties from oil well

May 16, 2019

By Pat Maurer

An agreement between the owner of an oil well on Section 18 of Grant Township has been an ongoing concern for the Grant Township Board since last November.

Supervisor Dan Dysinger explained, “In 1985 the Grant Township Board signed a lease with JEM Petroleum for mineral rights on the Township owned Section 18 property.  From 1985 to date the lease was transferred a number of times and is now held by Ranch Productions LLC of Pentwater MI.

He continued, “In 1986 an oil well was drilled, which is a marginal well, with production estimated about 1 barrel a day currently, if produced.  Ranch Productions owns the well.  While the Township owns over 67% of the mineral rights we have never received royalties from production.”
He continued, “Repeated efforts to gain access to royalties have run into dead ends.  The Township has employed the legal services of Topp Law which specializes in these matters.  In repeated attempts since last summer we have tried to get an agreement with Ranch Production on royalties, production and possible plugging and abandonment.”

He said, “We are now at a point similar to last fall where the well owner fails to provide steps leading to an agreement.  We will continue to make attempts at getting agreement.  The well is located within the northwest corner of the 180 acres more commonly known as the old Grant Township dump, at the corner of Surrey Rd. and Harrison Ave.”

Dysinger said at the Township meeting Tuesday, “We are asking for royalty and legal fees. If it is not plugged, the well must be pumped.”
In another matter the board approved a paving contract with the Clare County Road Commission. “The amount is $13,000 more than was budgeted,” he said.

The paving for Dover Road, estimated at $80,000 will now cost $90,000 with no match from the road Commission. Columbus Road will cost $55,000. The 2018 delayed projects at White Birch and Deep Woods Drive will also be done this year.

Other business Tuesday included:
*Approval of a raise from $60 to $75 per mowing for lawn service for Charles Shayler;
*Approval of employment contracts for Charles Shayler and Kathlee Shayler;
*Approval of a maintenance Contract with Clare county Equalization;
*The appointment of Michelle Bott to serve on the Pere Marquette District Library Board of Directors;
*Approval of monthly bills totaling $21,137.37; and
*A report from County Commissioner Leonard Strouse.

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