Replies to This Discussion

Permalink Reply by Dave on May 5, 2011 at 2:01pm

I know of several surrounding property owners in Belmont County that received payments in the spring, summer and fall of 2010.  However, these owners sold at very low prices (less than $200/ac).   Most stories that I have heard are from those being strung along and waiting. 

Permalink Reply by Finnbear on May 6, 2011 at 1:07pm

What Township?

Permalink Reply by Dave on May 6, 2011 at 4:06pm

Smith Township

Permalink Reply by Finnbear on May 11, 2011 at 4:16am

I spoke with Jeff Bailey today from the non-profit group ALOV that was so successful in April with their 60,000 acre lease of land in Columbiana, Carroll, Jefferson , Mahoning ,Stark, Tuscarawas,and Harrison Counties that was signed with Chesapeake. This was a $2250/acre, 17.5% Gross Proceeds royalty that was very landowner friendly. They are gathering landowner names/contact info to start a Belmont county group. This might be a good chance for us in Belmont to get a lease written for the benefit of us landowners and not the oil companies or middlemen. Their website is below.

http://alov.us/home.html

If you are interested, please send me a message here http://gomarcellusshale.com/profile/Finnbear 

Permalink Reply by Christopher Baugh on June 13, 2011 at 6:36am

I have signed with Mason Dixon Energy INC.. Which is the only company drilling in belmont county... In fact the just fracked 2 wells on Kirk Porterfields property this past week. It will be 4 years ago in oct. when I signed with them and I get my check like clock work on the 6th. I did get a little less than $200 per acr but I have not seen them in the past four years and if they want to renew my contract in the 6th year it gets really good for me. The bigest problem for the drilling companies in belmont county is Murry Energy aka Long wall mining. I do talk to the field rep for Mason Dixon every now and then and they can not do anything pretty much south of I70. Which is where I am located, so they either have to REUP in a couple of years or I get to shop. I have also seen the maps of the long wall and they are not going to be done for at least 10 to 12yrs.

Permalink Reply by Finnbear on June 13, 2011 at 7:40am

I don't understand. You say you signed 4 years ago but you receive a check every month? Did they drill a well?

Permalink Reply by Christopher Baugh on June 13, 2011 at 8:01am

I didn't get a " paid up" lease mine is paid every year and my township is Richland.

 

 

Permalink Reply by Finnbear on June 13, 2011 at 8:46am

Is that $200/acre/year for 5 years or $200/acre period? Do they pay once a year or monthly?

 

Permalink Reply by Christopher Baugh on June 13, 2011 at 9:03am

$200 per acr/ per yr

Permalink Reply by Finnbear on June 13, 2011 at 9:59am

That is $1000/acre and not bad money for a lease in that area 3 years ago. The 1/8 royalty is Ohio's state minimum and was normal at that time. Today, the opening bid in Belmont is $2000/acre and 15% royalty on a 5-year paid up lease with a 5 year extension (at the choice of the lessee) at $2500/acre. North of I-70 you can do better than that. I see you signed 3 years ago (10/8/08) and they filed it 12/29/08 so in Oct 2013 they will have to extend/renew your lease if they want to keep it. Your lease mentions nothing about giving them a first right of refusal, does the unrecorded Bonus and Rental Agreement mention that. Are you not able to shop around unless they choose NOT to extend your lease in 2 years? If you ARE able to shop around, do so now and look for a lease offer with a better bonus, royalty, and other terms more favorable to you. Contact them as soon as you have an offer and they may want to match that offer and extend now at the higher rates to guarantee they retain your land.

Permalink Reply by BMR on June 14, 2011 at 8:14am

You are misinformed.  There is no minimum royalty in the State of Ohio.

Permalink Reply by Finnbear on June 21, 2011 at 4:59pm

Are you sure of that? Can you cite ORC that specifies what you claim?

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