Comment

Comment by Inchworm antenna on June 19, 2014 at 7:18am

Folks need to pay very close attention to the market enhancement which might appear to bring more value to the lessor, but many in PA claim is a blind sided attempt to take steep deductions on gross leases. And then there's also the issue of a company or two taking outrageous deductions on Net leases, and how certain companies structure those deductions to where some landowners complained the deductions were almost as much as the actual royalty leaving them with little to nothing.  (like selling to a sister company that charges higher than usual fees, and transferring the fees in deduction form to the lessor).  Looks like folks in PA have even begun to organize against some of those practices and have included their political leaders.  Even the PA Governor has specifically weighed in.  If the same issues are beginning to surface here in Ohio it would be great if people speak up.  Then again maybe the production on the wells commented about are just not very lucrative.

Comment by Kelly Young on June 19, 2014 at 6:45am

They would be from Chesapeake. As for your other questions, I have no idea. We have yet to receive royalties. Next month is the first month we are supposed to get them.

Comment by Inchworm antenna on June 19, 2014 at 6:32am

Are the royalty payments from Chesapeake?  Do those Royalty payments take into account application of any of their classic outrageous "Market Enhancement" clauses like people were complaining about in Pennsylvania?  Were the deductions steep?  Were these Net leases?

Look up market enhancement deductions in the general topics discussions.

Comment by Kelly Young on June 19, 2014 at 5:04am

When you get your first royalty check after 3 months of production, when are those sent out? I am hearing the 1st, someone else said the 15th.

Comment by TJT on June 16, 2014 at 7:10am

There seems to be some growing uncertainty here about Columbiana County's shale potential. Rumors of low royalties don't help. But it's wise to keep the last few days or weeks in context. Judging by total permits and drilled wells, the county is still clearly among the top five most active. It has about the same percentage of permits to wells drilled as Carroll County. However, the number of producing wells is still lagging, which might be one reason for the concern. My source is this handy Farm and Dairy graph. 

Comment by Kathleen on June 16, 2014 at 7:02am

My friend got about $145~ per acre from the well on Bethesda. 2+ acres, 3 months $1000.

Comment by Finnbear on June 16, 2014 at 6:07am

Is that per day, per week, per month, per year? Which specific well? Under what royalty terms?

"$40 per acre" doesn't mean a whole lot without a whole lot of context to define it.

Comment by Kristy Foster on June 16, 2014 at 5:49am

royalties.

Comment by Finnbear on June 16, 2014 at 5:11am

$40 an acre for what?

Comment by Kristy Foster on June 16, 2014 at 4:54am

I was told $40 an acre from one landowner and another in Bergholz said his gas was sold for 5 and 6 cents last month.

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