The Athens News
A McConnelsville, Ohio-based organization that represents landowner groups in southern Ohio including one in Athens County has announced that it has signed an oil-and-gas deal for a Washington County group, with terms that include $4,050 per acre for mineral rights, plus 18 percent royalties on oil and gas production.
According to its website, Southern Ohio Energy Consultants, LLC (SOEC) aims at “assisting local landowners in the development of their oil and gas interests,” specifically “Utica Shale holdings across southern Ohio.” SOEC currently represents landowners in Athens, Meigs, Monroe, Morgan, Muskingum, Noble, Perry and Washington counties, the site says.
This includes the Southern Athens County Landowner Association, which includes landowners in Alexander, Lodi, Carthage, Canaan, Troy and Rome Townships, as well as some in northern Meigs County. SOEC’s website says the SACLA’s membership accounts for some 39,000 acres.
In a new release on its site dated last Friday, SOEC announced that, on behalf of the Watertown Landowner Group in Washington County, it has “reached a deal” with DUX Petroleum of Lubbock, Texas. The Watertown Landowner Group represents landowners in Watertown, Waterford and Palmer townships, on Washington County’s western edge closest to Athens County.
According to SOEC, members of the Watertown group will receive $4,050 per acre on a five-year lease, which will continue as long as the site keeps producing in profitable amounts. If after five years drilling hasn’t started on any particular parcel, DUX will have an option to extend the lease for three more years by paying an additional $4,050 per acre. SOEC’s work in negotiating the deal will not reduce the landowners’ payout, because DUX has agreed to pay the SOEC’s 1 percent consulting fee.
