Replies to This Discussion

Permalink Reply by Gary L on March 17, 2012 at 4:39pm

Billy,

Does forced pooling in Ohio only apply to parcels under 20 acres?  See link

http://www.salemnews.net/page/content.detail/id/551222/State-law-al...

Permalink Reply by Billy Park Whyde on March 19, 2012 at 3:59am

Let me do some research on this might take a few days Gary.

Permalink Reply by Billy Park Whyde on March 26, 2012 at 7:20am

Truth in Leasing Act Proposed.

Here is some news! http://lookbeforeyoulease.org/2012/03/26/state-rep-okey-introduces-...
A bill introduced as a truth in Leasing Act!

Permalink Reply by Gary L on March 28, 2012 at 8:39am

Billy

More info on forced pooling. http://www.dlapiper.com/forced-pooling-statutes-in-the-marcellus-sh...

I have heard 10 acres or less ,then 20 acres or less in the Salem link. The above link references PA-WV-and OH.

Permalink Reply by Billy Park Whyde on March 29, 2012 at 2:15pm

Hi Gary whats up with the pooling? As to my knowledge pooling would really be a pain in the neck for a O&G to pull off.

Permalink Reply by Billy Park Whyde on April 13, 2012 at 6:38pm

Thought I would pass this along:

 Reply by jami d 42 minutes ago

Utica,

I contacted ODNR. The guy explained the difference between "mandatory pooling" and "unitization." "Mandatory pooling" is the term they use for forced pooling in an urban area (defined as 5,000+ people with very small parcels). It hasn't happened with the horizontal wells (because nobody is going to put a horizontal well in the middle of someplace like Columbiana). BUT, he said what they call "unitization" is something very similar for rural areas. "Unitization" is somewhat more landowner friendly. The driller must have at least 65% of acreage already leased and must make a reasonable attempt to get all other property leased. Then they can apply for "unitization" and it goes before a panel. If the panel approves, then the landowner has a handful of options (signing lease and getting same bonus/royalties as neighbors, working interest owner, etc). This is different than the "mandatory pooling" in urban areas. In that case, the driller must have 90% of properties leased. If panel approves, landowner can be given royalties only (no lease and no lease bonus). And YES, the guy from ODNR said there was a recent case of "unitization" for a horizontal well, but he didn't know offhand where in ohio (probably where you heard, I'm guessing). The landowner attended the hearing and said he would have signed the lease if he had been given a good lease like his neighbors had. (It wasn't a true holdout landowner for environmental or other reasons.) ODNR guy said driller must first make sincere, documented attempt to get landowners signed. I think he said it costs $5,000 to apply for unitization (pocket change). He made it sound like drillers probably wouldn't be rushing to do it. I also asked about holdout landowners, and he said the technology is there to drill around parcels. Obviously not if you're pretty close to the well pad, but the farther away, it sounds like they can twist and turn to avoid some properties.

Permalink Reply by Billy Park Whyde on April 1, 2012 at 3:40am

 By the way In Muskingum County today was the last day supposedly to sign up with the Muskingum Valley Landowner Group is the Group started by the law Firm of Graham and Graham of Zanesville, Ohio Graham & Graham. I have no idea as to how many acres they were able to gather.

They had a bottom line target of $3,500/acre and 16%   with Graham & Graham getting 7.5% of the lease bonus. I have not signed with anyone.

Permalink Reply by Sawdust on April 1, 2012 at 2:41pm

I heard around a week ago, that they had gotten 50,000 acres.

Permalink Reply by Billy Park Whyde on April 1, 2012 at 2:51pm

I myself rather doubt that. I base that upon the fact that I doubt if many landowner  even know if they have the mineral rights or are under a lease. So the 50,000 I might believe in reality might  have say 15,000 that would be clear to work with perhaps. Mind you this is my guess. 

Permalink Reply by Sawdust on April 1, 2012 at 3:39pm

It could be a misunderstanding too of 5,000, and not 50,000. Sometimes people don't hear straight.

Permalink Reply by Billy Park Whyde on April 7, 2012 at 1:45pm

"Also when we asked a few questions about our lease including can the lease be limited to certain formations... they answered no, that has not been done, company will not go for that. " I asked the same question got the same answer. My thought was how do you know what a company will or not do unless you are in bed with that company?

Permalink Reply by Ron Ward on April 1, 2012 at 10:41pm

Apparently Patriot is buying up and flipping in my area! They have leased all around my property and feeling forced to lease ro them. The offer on the table $4500/10% gross? The was i am understanding it, is the $4500 is a minimum and if they sell for higher i get that amount. They will get 10% of what the final amount is. Any suggestions out there. I only have 26 acres at this location and dont want left on outside. Do i have any bargaining chips to play with or is this a decent deal????

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