new leasing in trumbull county?

Does anyone know anything about Carizo (SP) oil looking to buy leases in trumbull county?  Have a friend who was approached by letter and he's curious.  Tried to get him to get on here but he doesn't have a computer.  Please correct my spelling of the company too-I'm pretty sure it's wrong.  lol   Thanks

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Permalink Reply by Steven Kacerski on August 2, 2012 at 4:43pm

CAUV is not a property tax. I should have been more clear in my previous post with the point i was trying to get across. it is the valuation used to determine the property taxes for farmland.  if a property is not used exclusively for farm land anymore, then a landowner can lose their cauv exemption, meaning their real estate taxes would go up for that piece of property. the cauv has nothing to do with the severance tax so i'm not sure why you thought i was talking about severance taxes.

To answer your questions, of course they would receive income from oil & gas extraction, assuming they are part of a production unit and of course they would have extra money to pay for the increased taxes IF that would occur. Having said that, shouldn't a landowner be made aware of the possibility their assessed property values COULD be affected by the leasing, which COULD lead to higher real estate taxes?  Any good advisor (financial, CPA, attorney) would advise their client of all the potential outcomes and consequences of doing a deal. You look at everything in total and determine what risk you can live with and go with that deal.

my point had nothing to do with telling people they shouldn't lease.  You need to re-read my last paragraph. As you said in another post we have commented at, this site is about providing information.  That is all I did.  This issue has been talked about at various seminars I have been at, so I'm not the first person to mention this. It was talked about at an OSU extension seminar I was at earlier this year and also the seminars HH&M have had. I wouldn't think this would be much of a surprise and not a "sky is falling" moment.  

 

Permalink Reply by D on September 27, 2012 at 3:25am

The Carrizo lease is at least a lease. The SIF/Halcon lease is an option that they keep backing out of. They tie you up for months an then say "Sorry, you are not in our area of interest. This is not a lease. Halcon has backed out of tens of thousands of acres inthe last month inwestern pa. Halcon track record lately is not good. I dont trust them.

Carizzo will probably sell you to a big driller, but they do pay on their leases. A low signing bonus is ok if you are getting a gross royalty and there isn't a back out clause in the lease.

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