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

I have to be honest with you.....I couldn't care less if they pipe the frac fluid up my rear end....just show me the money....everyone will have enough CASH to put in the finest reverse osmosis system that money can buy if their well takes a hit.....you can process urine and then drink it with a quality RO system.....all the worry warts and nay sayers could kill a golden opportunity.....everybody thought the coal industry and the scio pottery would be around forever so the powers to be saw little trouble with keeping companies like coca-cola and timken out of harrison county.....that went over real well....did you forget that in 1981 you lead the state in unemployment at 22% ??????.....then it was chambers development that was going to turn the county into a nuclear waste site according to some......read about the history of scio and what the oil industry did for that town.....scio even had a COLLEGE!!!!!.....and with no epa or odnr and the crudest production processes the oil boom did NOT destroy the town.....last time i checked scio is still there......all i'm saying is don't be a bunch of chicken littles

Hydraulic fracturing has been around since 1954 and there have been over 200,000 wells completed using this method in Ohio alone. By the logic of the alarmists who use lies and fabrications to fuel their rants, there should be no more clean drinking water in Eastern Ohio where most of the wells have been drilled over the years.

 

These people have an agenda and it's to shut down Drilling in America. And it doesn't matter if facts get in the way or not. They'll make egregious claims and "documentaries" tailored to their own spin.

amen my brother.....well (no pun intended) said!

I appreciate your comments Nate and Dan, and I sympathize with them. I don't count myself among the "haters" and the "chicken littles".  I understand and respect that fracing has been around for a long time.  I don't think I'm being lured into anything.  I bring this up not because I think that frac water is super-toxic.  It is more of a practical concern for handling millions of gallons of used frac water in a responsible way, plus a concern for the PR of the industry.  You start hauling and handling millions of gallons of anything and you have to be more responsible because it can affect the community, from road damage to reservoir depletion to treatment plant overload, etc.  My understanding is that the wells of the past did not use anywhere near this much water to frac with, so we are dealing with new issues here. My interest is just as much for drilling in the area to commence smoothly as it is to protect the environment. The last thing we need is for there to be some kind of accident with frac fluid, because the media would jump all over that, and put a real damper on things.  So when I see how they are setting things up over there at the Buell Well, I think, gee that would be a bad headline in the papers to see that a frac line burst and a million gallons washed right through a state campground.  I just don't want anyone to get to sloppy or careless in this process, because there are those who are looking for a reason to shut down this gas exploration.   We have to think in their shoes, and not give them anything to complain about, especially as we get started with the first of these latest-technology wells in this county.

 

As I said above, I'm not concerned with the use of the frac water, but just with it's handling, as is the ODNR, as is Chesapeake. 

Dan ,  I understand where you are coming from. I believe all of us are excited about the financial gains that lay ahead. However to show no concern for the environment or our neighbors wellbeing is irresponsible. What about our neighbors who own the land and not the mineral rights, what if the water they drink becomes contaminated ? They are not as fortunate as you to recieve royalties, who will take care of them?  What about our streams , lakes and wildlife ?  I am a father of 4 and the only source of income for my family.  I am looking forward to the financial gains as much as anyone, but I would never trade a royalty check for our beautiful property we have in Harrison county. We must go through this process responsibly. We shouldn't have a "Hooray for me and Heck with you attitude". Don't sacrifice doing the right thing for pure greed because in the end greed will get you nowhere and doing what is right will.
Yes Scott, I'm all for the win-win situation here, and I believe it is definitely possible.  The fact that the wells are triple-concrete-encased to protect the aquifers that they pass through is just one example of how all parties invested in this process have come together to find solutions to make this thing work.  Of course there will always be a tension between being overprotective and being too lax.  I think it is a healthy tension, and if discussed by knowledgeable, reasonable people, it works out to everyone's benefit.  Blind greed is the deal killer here.  We can be excited about the possibilities but we still need to be thoughtful and responsible and think of our community.  I will take respectful exception to the comment above about sacrificing water for money.  I don't care how much money they would offer me, I would never willingly choose to give up my pure, clear well water and have to be on reverse osmosis forever.  That's all part of why I choose to live in the country. Fortunately we are not anywhere close to having to choose that.

Dan,

You are correct that the frac process is safe, unless there is an accident and spill of the slickwater. It is not exactly clear as to what procedure they will follow, and what they plan to transport in the pipes or the truck tanks. Those Dragon tanks pictured above have a capacity of 500 barrels and it will require ~186,000 bbl of water to complete the average well fracture.  

I spoke with the State inspector, and the plan for the Buell Well is to supply the fresh water from the tankers in a one-way system through the pipe from the tanker site to the well site a half a mile away.  On the well site the additives will be added to the water before injection into the well.  After they are finished with the pressure fracing, they will let the well sit for several days.  (In Marcellus wells, they have found that they only have to haul out about 10% of the water put in, because the well just "absorbs" the rest.  This is a Utica well, so it will probably be something similar, but no one knows for sure.) Then they will let the natural gas pressure push the water back out of the well.  As is comes out they will load it directly into tankers on the well site, which will truck it to disposal wells.   

That's the plan.  It seems very reasonable to me.

the buell is a utica well?.....i was told by a kenyon represenative that it was a marcellus

Buell is a Utica Well.  They just reached total depth (TD) today.   They hit Utica at around 8800' down, and then they went southeast about 7000' horizontally.

so will this be a gas and oil producing well?
That is literally the million dollar question!  "They" say Utica has oil and gas, but what this hole will produce remains to be seen.

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