I see there is some interest in parts of Guernsey Count particulary the north eastern portion.  Can anyone elaborate on this?  Possibley we even need a Guernsey Co. group.  Thanks!

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Probably.  I spoke with a man from CPK who was in Washington Township doing some land assessment and seeing what the interest may be.  I asked if they were interested in the Utica Shale and he said "probably".  Seemed to be talking first with people who held larger acreage. 


The people land agents are taking acreage in Guernsey County now at a lower rate hopping that they can sell the acreage to a drilling company it is time to put together some acreage and get ready for the land mineral rush. Michael J Belaj
Does each drilling company lease the land to resell the lease?  Is CPK known for this? 
Landmen always start out low say $250. a acre in the beginning. My advice is "Hold Out" for now, within the next year the price will easily go up to $1,500. plus 15% royalty. I have been a landman for several years, even leasing with Kenyon Energy an affiliate of Chesapeake Energy. Back in 2010 CHK started leasing Harrison County at $100.-$250 a acre, now they are leasing there for $2,000. a acre plus 15% royalty. If you will wait and take the time to educate yourselves, form a landowners group, then you will have a better chance to determine a better outcome for yourselves. There is leverage in numbers and there are several state and other local agencies that have a wealth of information to share with you before you sign on the dotted line.
Yes, that is what I think.  Information is always powerful and there is leverage in numbers.  I am in the information gathering phase.  Will be interesting to see how some of the initial wells in the Utica Shale produce in Ohio.   If predictions are accurate, and the Utica is more valuable than the Marcellus, then we should see lease bonuses and royalities as much, if not better than Pennsylvania. 
Yes, your predictions are right on target, the Utica is much better due to the fact it has oil in it and you know the price of oil. You will find that most leasing agents aka landman and the companies they represent will not disclose to you the fact that you really need when considering your options. It is customary that 12-24 wells be drilled in a area, allowed to produce for 18-24 months to determine the production, then that is when you will see drilling activity push full speed ahead or not. The lease bonuses that you have heard about in Northern PA and even now in SW PA and NW WV did not happen overnight, it actually took about 2 -3 years to kick into gear. I know there have been wells drilled all over Eastern OH and most were shallow, but the way I see it, if the resources were there in the 40's and 50's they are still there just a deeper depths. For my 2 cents worth, I'd say you may be sitting on the 50 yard line and not even know it, that is why I am trying to get people to not be so quick to give the farm away, just yet.

5000 per acre





Agreements to lease land in Trumbull County started at a few hundred dollars an acre and have grown to $5,000, Marchese said. Recent buyers have paid as much as $20,000 an acre for land in the Texas’s Eagle Ford shale area and the Bakken shale in North Dakota, which produce oil and gas liquids, Hanold said.


Great to see the information you provided, especially since it proves  everything that I have been saying, trying to advise landowners to not get in a hurry, but to wait for lease bonuses to go up to where they need to be, not there just yet. The energy companies need what you have to offer, your mineral interests, much more than you think that you need the money. Wait and see................$4,000.-$5,000. a acre is just over the horizon.


I agree with you we need to keep getting the word out and have landowners hold off.  If people continue to sign the offers wont go up.  Everyone needs to relax and watch things develope.  CHK isn't going anywhere with black gold under our feet.

Guernsey County has a double play marcelus and utica. Their are drilling logs that have been recorded in Guernsey County for wells drilled to the rose run and beekmantown formation the marcelus is above the Clinton sand the Utica is above the rose run sand. I have drilled several wells in Guernsey County Ohio and have produced gas off the 8 5/8 this gas may be comming from the marcelus or the Ohio shale formation. When you sign a lease dont give away the farm know what you are doing talk to some one that knows the oil and gas business. Some attorneys know oil and gas law very few know what is going on below the surface of the ground. Befor you lease your property talk to some one that knows the formations and the value of you lease. Michael J Belaj Cambridge Ohio. 

I posted this on on another topic but since it seems to be a recurring thread thought I would post here too. Not affiliated with anyone but this is my story from the Marcellus in PA:


Guys be careful. We got burned in Western PA by forming a group. About 4 years ago we had the opportunity to particpate in a landowner group organized by one of the attorneys. I won't mention the name of our guy because I think he actually meant well and because I heard of someone being sued by their landowner attorney for slander after poo pooing them on a board like this (not sure if thats true or not). Long story short we went with the landowner group and got a really good price for our 62 acres. Our neighbor went with a company by themselves and while we got a nice check (after 6 months) they only got 400/acre up front but had a well drilled after just under two years and have been getting 100grand /month in royalties for two plus years! We still have no word on when if we will ever get a well drilled. The landowner groups (and the attorny's representing them) do a good job bidding up the cost per acre. So good that the only people that can afford to take a lease from you are super giant corporations that have hundreds of thousands, if not millions of acres so our 62 acres doesn't even come up on their radar (they have over 600k). Also, the lawyers wind up getting paid by the gas company when they "deliver you up" as a group. Either in the form of a bonus paid to them by the companies for every acre they deliver or as some % of what you get on a dollar per acre basis. You will make your real $$$ by getting wells drilled not by an up front lease payment. Works like this (we learned the hard way): gas is sold in $ per thousand cubic feet and the Marcellus wells in our area are coming on at about 4-5 million cubic feet per day. Gas sells at around $4-$5 per thousand cubic feet. So 5000 thousand cubic feet per day (x) $5 = $25,000/day of which we would get (if they ever drill) 15%. Works out to over $100,000 per month. Lawyers dont get a share of this so they dont care if you ever get a well drilled it's all about the up front for them then they move on. If we had it to do over we would have went with the smaller company in our area that was paying less up front but who only had 10,000 acres so our 62 would have been more of a priority fro them to drill on. I am 57 and would be retired by now if I had did what my neighboor had. Good luck guys and this stuff isn't as complicated as it seems. If you can find someone local to represent you (if that's what ya wind up doing) he/she will probably know just as much as any outsider. All the lawyers do is serve as glorified contract writers in my opinion. Sorry if I sound bitter I want a dang well!
You hit the nail on the head, you need to get a drilling commitment in your lease, say between 6 0r 12 or 18 or 24 months. Then, you have a pretty good idea that worst case you'll be getting a royalty check before the lease expires and then the same company wants to come back and re-lease. Get the best bonus bucks you can, using common sense as when to sign. make sure the addendum's work for you, you will have to compromise on some issues, but remember 15%-18% royalty is a really good check every month for somewhere around 30-40-50 years for you, your children and your grandchildren. That is one way to create a family legacy.


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