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 Josh on February 10, 2011 at 3:30am

Does or has anyone added a "no physical action clause," this would only be for landowners with small tracts of land.  I just wondered if that would void "operations are conducted on Leasehold."  Not even sure if CHK would agree to this.

Let me know if anyone has run into this.

Permalink Reply by Peter Schueler on February 6, 2011 at 1:39am

I'm with Dan about the frac issues. Keep in mind that there are two different scenerios, one is the classic underground leakage of fluids or gas and the other is surface leakage of fluids, oil or frac fluid. It is correct that modern drilling procedures have all but eliminated the underground release of gas or fluids and even when these things happen the release generally has a limited area of impact.

I agree with Dan's concern about surface contamination and that he expressed very well. Keep in mind that the scale of surface operations needed to drill these horizontal wells is more than ten times the amount needed for the classic vertical wells and the amount of frac fluid is possibly 100 times the amount used for conventional wells. The pipeline for transporting clean water to the wellhead and used frac fluid back to the frac water staging area is a legitimate area of concern. As an engineer I would look at three areas of design, the hardware (pipeline, pumps and valve design), a continuous monitoring system that would automatically shut down the flow if any flow and/or pressure anomallies are detected and finally a containment impound with capacity for a reasonable amount of spillage.

I'm not sure which way the Buell well watershed goes, into Tappan Lake or Conotton Creek, but one of them could be compromised by a significant suface spill with very significant consequences. You can be sure there would be an immediate demand for a drilling moritorium. That could shut down all drilling in Ohio just like it has done in New York State.

Do not dismiss the concern and need for the best possible environmental requirements. A major accident will be all the activists need to shut down this windfall for all of us landowners. 

Permalink Reply by James Knisley on February 17, 2011 at 7:35am
hello gentlemen, I am brand new to this site and have been trying to read through as many posts as possible to get the skinny on the situation. I have been told by a couple of people that they are now paying $2000 per acre plus 15.5%.  My question is who do I contact to get my property signed up. I have only owned my property for about 6 years so the county plat book does not have my name recorded. I haven't heard a single thing about marcellus shale until a gentleman that owns property adjacent to mine called me last night.  I have made some calls but dont know who to contact to sign up. My neighbor signed up with someone in summit county.
Permalink Reply by James Knisley on February 17, 2011 at 3:46pm

Jim,

 I just got a call when I got home tonight and found out that they are holding a meeting at our local fire station next wednesday. I am going to attend this meeting, if what I hear is not satisfactory, I will definitely get ahold of you.

Thank you,

Jim

Permalink Reply by James Knisley on February 20, 2011 at 2:40pm

Jim,

 wishgard are the ones holding the meeting this wednesday I was telling you about.  From what I have heard, and their post just recently has confirmed, they are paying 2K per acre w/ 15.5% gross. but their agent takes 160 per acre off the top for his fees. This brings it to 1840 per acre. I have also heard that it takes 75 days to get a check. I dont know if ths is standard throughout the industry?

What is your company offering?  I would like to know all of the details before I sign a lease with anyone.  I can give you my phone number if you want to email me  jknisley@netzero.net

Permalink Reply by Finnbear on March 3, 2011 at 4:32pm

Has anyone here actually received a check from a Wishgard lease?

Finnbear

Permalink Reply by Dan on February 20, 2011 at 4:20pm

MARK CALENDARS: 1st meeting of Harrison County Ohio Landowners Group

This Thursday, February 24, 7:15pm at St. Teresa Church Activity Center in Cadiz.

This is a group by landowners for landowners with two main goals:

  1. Protecting the natural resources of Harrison County with strong lease wording that guards our soil and water.
  2. Boosting the economy of our county by getting the best lease compensation we can achieve for our landowners, thus keeping money circulating in the county.

Please visit www.harrisoncountyohiolandownersgroup.org for more information on this brand new group! On the website you can see our lease document, the sign-up form, and learn more about how the group operates.  There are no large signing bonus fees paid out to brokers or landmen in this group!  It is organized by landowners of Harrison County for landowners of Harrison County.  Please consider coming to the meeting Thursday, but even if you can't please contact us at info@hcolg.org or (866) 931-4197 (a free call for landowners residing out of the local area) for any questions you might have.

A little background: Many of you have seen my posts on this forum for quite a while now.  Like most of you, I came here to educate myself about gas leasing and to network with other landowners.  I am also in negotiations with landmen for my acreage.  The research I have done over the past few months has led me to the conclusion that the best way to negotiate is directly with the gas companies, and the best position for negotiation is being a part of a landowner group. Some of the groups out there are "for-profit", where the attorneys or landmen organizing them keep 6%-10% of the signing bonus.  In HCOLG, the we landowners run the group, and we keep all of our bonuses and royalties for ourselves.  Plus we are negotiating some of the strongest lease terms that I have seen offered in this county. I have observed other counties starting up these kinds of grassroots groups, but no one was doing it in Harrison, so after talking with many others including folks on this forum and several county leaders, I decided to start our own group here.  Go to www.hcolg.org for more information, and please spread the word about it to your neighbors.  I hope to see you all on Thursday. Check the website for a map to St. Teresa Activity Center.  It's a block down from Coffy's Supermarket.

-Dan Ellis

Permalink Reply by Al Cramblett on April 16, 2011 at 6:15am

Beaver Local BOE leases 132 acres for oil and gas drilling

April 15, 2011
By KATIE SCHWENDEMAN - Township Reporter (kschwendeman@reviewonline.com) , The Review

ROGERS - The Beaver Local School District will receive more than a quarter of a million dollars in July through an oil and gas lease approved by the board Monday.

The board agreed to lease all of the district's 132 acres to the Associated Landowners of the Ohio Valley (ALOV) and Chesapeake Exploration, LLC, of Oklahoma.

According to the lease agreement, the district will be provided with a bonus payment of $2,250 for each acre leased, for a total of $297,000, to be paid in July.

District Treasurer Robert Barrett said Wednesday he is unsure at this time how many wells will be dug on the leased property.

According to the agreement, the district will receive a $30,000 "sitting/spud fee" in consideration for damages to the leased property prior to the commencement of drilling any well.

Board of Education President Tom Wolfe is optimistic about the agreement. He pointed out all wells will be drilled a good distance away from school buildings to ensure student safety.

He also said states in the west have benefited significantly through similar leases.

"It has actually brought a lot of towns back to life because of what they have found (through drilling) and the royalties paid from it. The percentage that they are paying the schools could actually turn into something for the school systems. It might be an opportunity for funding throughout the years," he said.

The Southern Local School District also entered into an oil and gas lease agreement this week.

Beaver Local first considered the lease agreement in December of 2010, when the board agreed to allow DiBacco and Barrett sign a letter of intent to join the association.

The ALOV is a Salem-based association comprised of more than 200 landowners in Columbiana County that seeks to ensure fair deals and protection of mineral rights for property owners.

DiBacco said the district is happy to get involved with the association.

"It is certainly beneficial from a financial standpoint," she said.

The district will receive a royalty of 17.5 percent if oil and gas are found on the leased property.

"I'm just speculating, but if they find anything on any of these properties, it could change rags to riches for some places," Wolfe said.

© Copyright 2011 The Review. All rights reserved. This material may...
Permalink Reply by JT on April 17, 2011 at 11:28pm

Following is what we've heard via email from Wishgard regarding the December 31, 2010 signature group of supposedly 45,000 acres.  http://wishgard.com/  Not sure who they've sold to.  Gulfport Energy recently offered common stock to purchase 27,500 acres in Ohio Utica shale play.  According to this blog the deal is to close in May.   In early 2010, Gulfport Energy agreed to purchase a 50% share of 27...

"We are expecting checks to go out next week for most people. You should receive your check the following week pending clear title. Not to worry if you dont receive by week after next all checks will be delivered no later than May 10." 

Permalink Reply by clyde vanhoose on April 23, 2011 at 2:29am
Hi Does anybody have any new news on the Buell well? Thanks
Permalink Reply by scott jackovitch on April 23, 2011 at 7:06am
I drove past it the other day and it appears the gas line is complete. I saw where they had tied it into the transmission line. I also noticed what appeared to be two large white storage tanks. I noticed them from Bell road they are white and look to be almost as tall as the trees. Maybe 30 feet or so .  Does anyone know what they are for ?
1s7k1qp9wk1t7Permalink Reply by 1s7k1qp9wk1t7 on April 23, 2011 at 7:41am
please say oil :-)

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