Lease Offers in Harrison County

Updated November 8, 2011

This webpage is a little over a year old. During this time frame oil and gas leasing
offers have increased significantly.

As of November 8, 2011 the signing bonus has increased to $5350-$5800 with the royalty percentage at 20 % gross. Leases are being signed by several companies. The best lease terms are being realized by the landowner groups that offer their acreage through a competitive bidding process. I personally believe the money offers will continue to increase with time. The highest offers occur when landowners pool their land into contiguous units.

Presumably, all are aware that Chesapeake recently leveraged 25% of their leaseholds in

Eastern Ohio for $15,000 per acre by forming a JV with an undisclosed oil major.

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Replies to This Discussion

Permalink Reply by Finnbear on August 30, 2011 at 5:14am

That is a Chesapeake well. The plat and the application papers are not on the ODNR website yet. Chesapeake is notorious for stalling on their filings with the state. You might call Columbus and ask why those documents are not available yet. They should be.

http://www.dnr.state.oh.us/mineral/database/tabid/17730/Default.aspx

 

Permalink Reply by Dan on August 30, 2011 at 4:48am

Mark, do you mean that PDF of the Buell Well drilling unit? I believe I had to ask for it at ODNR.  All the permit-related documents are available to the public.  They try to scan them all and bundle them up into a TIFF format file, and post it on the online database for that particular permit, but sometimes when you open up that TIFF file you find a blank page where the platt map should be and a note that says, "Oversize Drawing" and something about having to come into the office to get a copy.  I think that was the case for this one, so they emailed it to me.  The same thing happened with the Jewett-Sportsmans Well.  If you are interested, I've attached that one below. 

Attachments:
Permalink Reply by mark moll on August 30, 2011 at 8:08am

thanks Dan and Finnbear,

I am still trying to figure out how to navigate the ODNR database. This info will be helpful.

Permalink Reply by Dan on August 30, 2011 at 3:22pm

Mark, for you or anyone else who wants to navigate the ODNR well permitting database, here's how I was taught by the staff at ODNR:

  1. Go to the start screen of the database by clicking here.
  2. Click on the plus sign (+) next to Reports to expand that menu item.
  3. Click on Permit and Plug List.
  4. There are lots of criteria here, but usually you will only need to use the top 2 or 3. To the right of Application Issued Date, click the drop-down menu and choose ">= Greater Than of Equal".
  5. Then go over further to the right and click on the drop down menu and pick the date.  I usually just pick the first of the month to catch everything that is recent.
  6. Now to the right of County, click on the drop-down menu and choose "= Equal".
  7. Then go over further to the right and click on the drop down menu and pick the county.  Of course I usually pick "Harrison". (You could go on down and pick a township in the same way, but there isn't much activity going on right now, so setting up the first two only is still going to be a pretty short list.  The problem with trying to narrow it down too much with criteria, like picking Permit or Plug, is that sometimes the permits are improperly coded, and you will miss seeing it if you specify too much.)
  8. Now in the upper left, click on the white Report button.
    You should see the Permit List, for the date range and county you specified, if there are any.  If you put in 8/1/2011 and Harrison for today's date (8/30/2011) you only get 5 permits back, spanning 2 pages.  You can scroll through the first page with the scroll bar on the right, then click on the arrow in the upper left to go to page 2.
    Notice at the bottom of each permit entry there is a link that takes you to Google Maps and shows you the position of the well, by lattitude and longitude.  You can see what type of permit it is at the bottom of each entry next to "Type:"  It could be things like "Plug and Abandon", "Plug back and drill horizontally", "Drill new well", "Salt water injection well", etc. You can also see things like the date the permit was issued, the planned depth, and the targeted formation. You can  see the acreage of the drilling unit, which gives an idea if it is being considered a vertical or horizontal well at this point.  This is just a summary of the permit.
  9. If you want to see the actual documents filed with the permit you need to write down (or highlight and copy) the API number from the permit which is in the upper left corner of the summary under the County name.
  10. Then click on 1. Menu and expand the Reports menu again by pressing plus (if it's not already expanded.)
    This time click on Completions.
  11. You only need to enter one thing on this page.  To the right of API Well Number, click on the drop-down menu and choose "= Equal".
  12. Then move further to the right and type or paste in the API number you recorded above.
    Click on Report.
    You should be looking at the Ohio Well Completions Report.  This summary screen will have a lot more detail on it, and after the well is completed, you will see information show up here about the well's production.  If you scroll to the bottom of this summary you will see a section called Link to Well Image(s).  These are TIFF format files of all of the scanned documents associated with the permit, including the application itself, plat maps, notices and instructions from ODNR, and correspondence back and forth between all parties involved.  This is where you will find the plat maps, if they are going to be available online. Sometimes it takes ODNR staff a while to scan and post these documents once they have them, and as I said, sometimes even then they decide that some large drawings scan to a file size that is too big to include in the TIFF file.  In that case you can call them and they will email it directly to you.

Thats the basics.  Use Permit and Plug List to find the permit you are interested in, then copy the API Well Number and go into the Completions list and see what documents or maps they may have uploaded for that permit.

Permalink Reply by Finnbear on August 31, 2011 at 3:00am
For permit 22090 in Carroll cty/Lee twp there are no files available (yet). This either means CHK hasn't filed them yet or ODNR hasn't scanned and posted them yet.
Permalink Reply by Dan on January 27, 2011 at 8:26am
Donald, which well pad are you referring to in North Township?
1s7k1qp9wk1t7Permalink Reply by 1s7k1qp9wk1t7 on January 27, 2011 at 8:29am

the one on hanover ridge in archer township past the old coal shovel

Permalink Reply by Dan on January 27, 2011 at 9:19am
Donald, you mentioned 2 well pads in archer and north townships.  I know about the Buell Well off of Hanover Ridge Road which is in Archer Township.  But were you saying there is a second well pad somewhere?
Permalink Reply by Dan on January 27, 2011 at 8:43am

The ODNR keeps the public record of all permits granted here.  It shows that there have been no new permits approved in Harrison County since back in December when Chesapeake re-permitted the Buell Well as a horizontal unit.

In order to file for a permit they have to have their drilling unit put together though, so I would imagine that there is a good bit of puzzle-piecing going on right now about how to piece together the next units.

1s7k1qp9wk1t7Permalink Reply by 1s7k1qp9wk1t7 on January 27, 2011 at 9:29am

James Harber posted this on 11/30/2010

 

"

Kenyon aka chk for most leases has bumped their bonus per acre tp $1,500. plus 15% royalty on a 5 yr Paid-Up, O & G Lease.That is providing there is 5 acres or in a specific area they desire now,Archer Twp and Rumley Twp seem to be their primary target areas, then North Twp and Stock Twp. They are setting 2 new well pads - Archer Twp just Sputh of Jewett, one on the Sportsmans Club off Briar Rd and the other one South of Briar Rd on Hanover Ridge Rd, near Bell Rd. The pad on Hanover Ridge Rd is almost complete, with drilling to start the first next month. These are test wells for chk and will possibly determine the areas they will drill first in Harrison County."
Permalink Reply by Dan on January 27, 2011 at 9:47am
Thanks Donald.  I remember now reading that when James posted it.  However, I have not seen any action over by the Sportsman's Club, nor is there a permit on file for a well there.  Have you seen any signs of a second pad going in over there?
Permalink Reply by James Harber on January 27, 2011 at 11:17am
I have heard from a good source that the Sportsman Club bought back their mineral interest several years ago from the coal company. It seems as if CHK may have jumped the gun when they went in and staked out the well pad site. I believe that is why everything is "on hold" on that site. The Sportsman Club sought out legal counsel to review the agreement they have and to verify that they actually did buy back the mineral interests.

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