Upon viewing this thread http://gomarcellusshale.com/group/carrollcountyohio/forum/topics/in... I sent a email to the ODNR O&G Chief to get a answer on this.
Just received an interesting phone call from a landman that's working for Kenyon/Chesapeake. We have 92 acres - 78 is leased and the remainder was on an old lease that expired in February and is now "unleased". We have taken a "let's wait and see" approach with this 14 acre parcel and have been contacted by a couple of different landmen about leasing over the last few months.
The most recent offer was a couple of weeks ago at $5800/acre with a gross 20% royalty and acceptance of the SURE or ALOV lease by Kenyon/Chesapeake. Our caller today told us that Chesapeake has told them (the landmen) that they can no longer make that offer. They can only ask for $5000/acre with a NET royalty and may only use the original "base" Chesapeake lease, and there's no guarantee they can get that.
The landman also indicated that we should read up on "forced pooling", because now that Chesapeake has over 95% of the land in Carroll County under lease, they will begin forcing the unleased owners to be pooled into their units at their terms and 1/8 royalty. He indicated that the "competition" has left town and Chesapeake no longer has any incentive to increase the prospective lease terms.
Is anyone else hearing this same info? Personally, I think its a scare tactic to get people to sign...especially since we heard very similar comments from a landman "long ago" when they were trying to get us to sign our 78 acre parcel for $600 an acre (which we didn't do, by the way). Just thought I'd pass the info along though and see if anyone else cares to comment.
I would hope that the ODNR would consider the Constitution in regards to the taking of personal property in regards to this issue.
Billy P. Park,
I thank you for the heads up call on this. I am a landowner who hasn't leased as of yet int Tuscarawas County.
I only have a mere 20 acres, but I too was contacted a few different times. I am in the military and not able to get
back to my "retirement parcel" too often to conduct business. Your information and the response it may recieve will prove interesting and educational.
Yw welcome former USN here Nam vet.
12:41 PM (0 minutes ago)
Mr. Whyde:Thank you for inquiry, but you will need to contact someone from ODNR's Oil & Gas Division to respond to your questions. I have included cc to Mike McCormac, Oil & Gas Mgr.
Lanny E. Erdos
ODNR, Division of Mineral Resources Management
That what is so disconcerting about this, they should be fully prepared and capable of answering landowners questions.
That's why they are paid to make decisions!
I'm thinking the subject of "forced pooling" is gonna get alot of attention in the coming months/years here in Ohio. Especially with landowners with less than 10 acres. Will the O&G companies be able to have their way with these parcels & their owners?Will the ohio laws protect them? What do these people need to know now before they get taken?
Billy , who told you that you that Erdos is the chief of the odnr . The chief is Rick Simmers unless they have more than 1 chief .
Hi Ridgeman it was my mistake I looked quickly on the ODNR site of the O&G and clicked on contact and poof:
Chief, Division of Mineral Resources Management; Mine Safety Program Administrator
I only homed in on the title lol!
LOL Billy . Thank you for your USN service also !
I am going to rework this request and will post it a bit latter on this weekend. TY
Billy, we received the same phone call yesterday from our Kenyon/Chesapeake landman. We had a 5800/ 20 % "market enhancement" royalty lease offer that had been around for about a month. We were told that those terms were gone. Our landman said that he could get $5000 with net royalties and their standard lease form until Tuesday. Then, it's dropping again.
When we asked him a while back about forced pooling, he said that if they force pooled, you would get the average of what the others in your unit got for royalties. Not sure if that's true at all, though.
KLB looks as though they are still hungry for more land don't it?