Massive Lease Signing in Ohio!

Residents from eight northeast Ohio counties, including Mahoning and Columbiana, lined up on Friday to lease their mineral rights to Chesapeake Energy.  But they're not coming in alone. They're part of a larger group, the Associated Landowners of the Ohio Valley.

Last year, ALOV formed to address residents safety and financial concerns over drilling the Marcellus Shale for natural gas.

"And you had people already studying the ins and outs of the things the average person doesn't have the time or where with all," said Columbiana county land owner, Curtis Frase.

"Well it certainly made it easy for us. These folks did all the research for us and just felt comfortable going with such a large group like this," said James Voorhes of East Liverpool.

And the group proved there is power in numbers.  In December, it reached an agreement with Chesapeake, which the residents believe goes above and beyond state law to protect their water supply and land.  They also say it was the best deal financially.

"We did it the right way. Sat down, took our time, submitted to 18 different companies, came up with the best one we feel," said Tim Duble.

The packed parking lot could be taken as a sign of the groups success. Between Friday and Saturday nearly 11 hundred leases will be signed.

The entire group is made up of about 2000 landowners, and represents more than 70,000 acres.

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Permalink Reply by Mat B on April 27, 2011 at 11:02am
what is the signing bonus and royalty?
Permalink Reply by ray schmidt on April 27, 2011 at 11:37am
2250/17.5gross/5yr
Permalink Reply by Mat B on April 27, 2011 at 11:47am
any depth restrictions?
Permalink Reply by Larry Andrew Chako on April 27, 2011 at 12:33pm
Are there any landowners from Trumbull County in the ALOV?
Permalink Reply by Utica Shale on May 4, 2011 at 1:29pm

Larry,

 

 I  do not think any land was located in Trumbull County.

 

 I saw a document that stated:

 over 60,000 acres located in these counties ...

 1) Mahoning

 2) Columbiana

 3) Carrol

 4) Jefferson

 5) Stark

 6) Tuscarawas

 7) Harrison

Permalink Reply by Utica Shale on May 4, 2011 at 1:23pm

Mat B,

 Yes, there are depth restrictions.

Permalink Reply by Josh on April 27, 2011 at 1:53pm
Does all those people know CHK is after OIL as well?  Probably leaving alot on the table, I did read through their lease and was impressed with all the addendums.  They definatley are protecting their land.
Permalink Reply by Utica Shale on May 3, 2011 at 5:51pm

Josh, WHY would you say, "Probably leaving alot on the table" ?  What is it the we are leaving on the table?

 

Permalink Reply by craig on May 3, 2011 at 8:09pm

I'm guessing that Josh means that you left some of the signing bonus on the table. You could have got more considering it is oil they are after.  My 2 cents worth.

 

Permalink Reply by Utica Shale on May 4, 2011 at 2:01pm

Craig,

  We knew that both oil and gas could/would be extracted from the well. It is clearly stated in our lease. We will make money if either petroleum based resource (gas or oil) is extracted.  The majority of Utica wells drilled, so far, have produced no oil - just Nat Gas. I do not agree with your "2 cents worth".

 

 Has anyone (with similar geology in their shale layers below the ground) actually signed a better overall lease than ALOV?

 

 Also, there are other very important issues in a Gas and Oil Lease than just the Signing Bonus amount and % Royalties.

Permalink Reply by craig on May 4, 2011 at 9:22pm

All the Chesapeake leases I've seen, and I've seen several different versions, include both oil and gas. I was just giving the probable answer to your query.... which turned out to be right.  You don't have to agree with me, that's fine. I have signed up 2 parcels of land I own, and I'm going to let the third one ride and gamble that the bonus/rate is going up in the near term. 

Josh, thanks for confirming my suspicions.....I have an gas/oil industry contact in NE Ohio and he tells me the same as you state. 

Permalink Reply by Josh on May 4, 2011 at 9:43pm

Thanks Craig,

http://www.bloomberg.com/.../chesapeake-may-seek-partner-in-ohio-s-...

  Here is a  good article I just found I think you might find it interesting and anyone else also.  Gives some pretty exciting news for us Buckeyes!  Its says they have found OIL!

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