Carroll County Royalties

We were told by a landowner group that someone in Carroll County is receiving royalites of 8000.00 per acre per month At 12.5 percent per month.  Can this be right? or are we getting smoke blown up our #$%.  just asking!

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Permalink Reply by monty deruyter on January 15, 2012 at 12:51am

I don't know what size this unit is but alot of units in ohio are way less than 640 acres. The one that I should be in is only listed at 125 acres.

015334grltd9mPermalink Reply by 015334grltd9m on January 15, 2012 at 2:18am

What if the unit is only 200 acres?

Permalink Reply by monty deruyter on January 15, 2012 at 4:24am

Ron , then it would be $5625.60 a month.

015334grltd9mPermalink Reply by 015334grltd9m on January 15, 2012 at 4:26am

This is why I am not a believer in 640 or 1280 acre units, I do not believe they are law and small acreage gets lost in the "hustle."

Permalink Reply by monty deruyter on January 15, 2012 at 4:31am

Has anyone seen a unit that is 640 acres in ohio ? All the ones I have heard of are smaller.

015334grltd9mPermalink Reply by 015334grltd9m on January 15, 2012 at 4:44am

O&G companies have a history of making units larger than needed to tie acreage up.  I don't blame them, but one who manages parcels all over the county, my strategy now after initially cashing out a little,  is to only lease when wells are near the acreage.  This way, the owner is assured of royalties for the harvest under them and not a fraction of the island of Guam.

Permalink Reply by Susan Lucas on January 14, 2012 at 5:45pm

Thanks for response.  It seemed a little to high to us also.

Permalink Reply by jnm on January 15, 2012 at 4:30am

 I too had heard all these huge numbers. checks are finally arriving. I saw a check last week; it was for a lot of $ but worked out to well under a $1000 per acre per month

Permalink Reply by craig on January 15, 2012 at 4:38am

I believe that is alot of smoke you have there!  I was told (2nd hand) that one of the 3 wells in Ohio that CHK reported is producing $470/acre/month for the unit holders. I don't know that to be gospel though.

Permalink Reply by Jarrad Stephens on January 15, 2012 at 4:59am

My family currently has some property in Monroe County. The previous lease was originally held by Strata. The lease had a depth clause of 3,999 feet. Information I have gathered states that the Marcellus and Utica are at depths of 5,000 feet and below. I do believe that the payout will be lower due to the previous lease that was purchased by Exxon. I would think that due to the depth clause the payout should be pretty good. It is about 573 acres between my grandpa and my uncle that was all aquired by Exxon. What does everyone think? Just trying to get some insight. Thanks

Permalink Reply by Jarrad Stephens on January 16, 2012 at 1:46am

The 573 acres is what my Uncle and Grandpa have interest in. The remaining acreage is seperated between additional family. To answer your question, James McHugh is my Great, Great Grandpa.

Permalink Reply by Jarrad Stephens on January 16, 2012 at 2:38am

Thanks for the info. I just took a look at what you were saying and unfortunately I think you're right. The 3,999 foot depth clause was not attached to the original lease, which I thought it was. I know they are supposed to meet with the attorney in the next couple of weeks..."outlook unfortunately looks bad after reviewing the document". When you refer to the pooling and assignment rights, what are you referring too? What does that mean? Thanks for the insight again, I appreciate it.

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