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 4, 2011 at 6:30am
I just wanted to update everyone that the upfront money (bonus) has gone up to $2000 an acre for our area. CHK
1s7k1qp9wk1t7Permalink Reply by 1s7k1qp9wk1t7 on February 8, 2011 at 6:50pm
can you give us something now?,,,,,thanx!
1s7k1qp9wk1t7Permalink Reply by 1s7k1qp9wk1t7 on February 9, 2011 at 9:15am
awesome.....look forward to seeing you....looks like we are going to have a real nice turn out....come hungry!
Permalink Reply by Cathy Galbraith on February 9, 2011 at 10:13am

Jim what are the details to the WJER luncheon.  You talked with my husband

late last week and what he had to say was very interesting.  Hope the luncheon

is something he can catch.  Cathy/Dan Galbraith

Permalink Reply by Cathy Galbraith on February 9, 2011 at 12:21pm

We'll it sounds like a good time.  Dante's and I left Scio about the same time

and relocated here in Tusc. Co.  The kids were so glad to have them down

here with us.  Anyway how does it work with the Client meetings?  Are

they something Dan could come to and learn more about how things work

with your Company?

Permalink Reply by Paul Martinelli on February 10, 2011 at 6:55am
James,  Who do you work for/and represent?   There currently is a Land owners group in Tusc. County. OVLG I belive is the name.
Permalink Reply by Buckeye Fan on February 5, 2011 at 9:39am
What is your source on that? Kenyon is still at $1500....
Permalink Reply by Dan on February 5, 2011 at 10:04am
Scott I have heard from three landowners who said that their Kenyon landmen are now saying $2000. Mine says the same, so it's at least floating around in the Kenyon universe, enough that you can go to yours and say that some of Kenyon's people are offering it now.  I don't know why some are and some aren't, but maybe it has to do with location.
Permalink Reply by Buckeye Fan on February 7, 2011 at 10:45am

Dan,

Who are you working with at Kenyon?

Thank you,

Permalink Reply by Dan on February 8, 2011 at 3:13am
Jeff Lucas
Permalink Reply by Dan on February 5, 2011 at 7:48am
Can anyone point me to where the minimum percentage for forced pooling in Ohio can be found?  I hear that it is 70%, and the ODNR site says it is strongly encouraged to be >90%, but I haven't been able to find in any of the Ohio Code or House Bills anything that says what the actual minimum is.
Permalink Reply by Dan on February 8, 2011 at 3:34am

I'll answer my own question.  I spoke with Columbus ODNR permitting office, and apparently there is misinformation floating around about forced pooling in Ohio.  I spent a lot of time asking questions, and posing my questions in different ways to make sure I understood this right. First off, ODNR has been given exclusive authority in oversight and permitting of drilling, so their word should be the final word on the matter.  There is nothing on the books now about a forced pooling threshold, but the group working on the new rules is almost complete, and their proposed rules in this area mirror the ODNR's current interpretation and policy which is: they want at least 90% of the drilling unit to be leased, but strongly encourage more than that.  Not only that, but that is based on a 40 acre drilling unit, so that 10% would be 4 acres, and this applies to larger units as well. So that means if someone comes to them with a 640 unit, they can only have 4 acres unleased to try to force pool! I asked if that is the way the rule is going to stay, and they said no one has told them otherwise and that's the way the rules comittee is drafting it up.  Also, already on the books is a rule that says that someone can only apply for 5 forced poolings per year.

 

The main application for forced pooling up to now has been for small drilling units in urban areas where you have a couple of home lots that refuse to lease.  No one has yet tried to submit a forced pool request for one of the larger size units that are coming in with these horizontal wells.  If they do,  they are going to for sure have to have 90% already leased, and with current interpretation probably all but 10% of 40 acres or 4 acres.

 

What this boils down to is that Ohio is not going to allow landowners to be forced into units.  I have heard landmen and others say otherwise, and I can only assume that they are basing their knowledge upon the rules in other states.

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