Flat Rate Leases in Ohio- Exploitation

Friends,
We have thosands of old leases in Ohio whereas the mineral owner is only set to receive JUST an annual flat rate royalty of just $200 for gas extracted (no matter how many acres, and how much gas extracted.) Many of you are not affected, however THOUSANDS of acres right here in Columbiana County's Brinker Underground Gas Storage Field operated by Columbia Gas, are locked into these abhorent leases that are up to 100 years old.  If you think this is wrong then please help now.  Many States have created laws over 30 years ago like West Virgina & Pennsylvania that require a driller to pay a minimum of 12.5% metered royalty to those with such leases.  We have no such law here in Ohio where we are certainly behind the times on the issue, and property royalty owners are at a serious risk of exploitation.  Please extend your neighborly help us by writing the following legislatures and other key groups.  Tell them that if such laws were good enough for PA and WVA, then they are good enough for Ohioan's.  Please share this with your friends and family and encouge them to call too.  It's the right thing to do. Please contact them soon!  THANK YOU!

Legislative Contacts for enacting Minimum Royalty Statute
*State Representative, Craig Newbold
77 S. High St 13th Floor Columbus, OH 43215-6111 Phone: (614) 466-8022 Fax: (614) 719-6971 (Represents Columbiana County and we need to gain his support)
 
*State Representative, David Hall
Chair- Agriculture and Natural Resources
77 S. High St 11th Floor Columbus, OH 43215-6111 Phone: (614) 466-2994 Fax: (614) 719-6997
If prefer to email the State Representatives go to www.house.state.oh.us
 
Lou Gentile, State Senator
Senate Building 1 Capitol Square, Ground Floor Columbus, OH 43215 Phone: (614) 466-6508 Email:
(Represents Columbiana County through end of 2012)
Ag & Natural Resources Committee
 
Joe Schiavonni, State Senator
Senate Building 1 Capitol Square, 2nd Floor Columbus, OH 43215 Phone: (614) 466-8285 Email:
(will represent Columbiana County starting Jan. 1, 2012)
Ag & Natural Resources Committee
 
Cliff Hite, State Senator
Chair- Ag & Natural Resources
Senate Building 1 Capitol Square, Ground Floor Columbus, OH 43215 Phone: (614) 466-8150 Email:
Chair- Ag & Natural Resources
 
Mark Okey, State Representative
77 S. High Street, 10th Floor
Columbus, OH 43215-1464
614-466-1464
(just added) Mr. Okey introduced HB493 and is the State rep in our neighboring Carroll County
 
Governor John Kasich
Riffe Center, 30th Floor 77 South High Street Columbus, OH 43215-6117 Phone: (614) 466-3555
Visit
www.ohio.gov to email
James Zehringer, Director
Ohio Dept. Natural Resources
614-265-6997
2045 Morse Road, Building D
Columbus OH 43229-6693
Visit www.dnr.state.oh.us to email

For Farm Bureau members:
Ohio Farm Bureau
Dale Arnold, Director of Energy
Ohio Farm Bureau Federation 280 North High St, 6th floor Columbus, OH 43215 614-249-2400

Columbiana County Farm Bureau
1206 N. Main St. Suite 110
North Canton, OH 44720
330-456-4889

Views: 1171

Replies to This Discussion

Permalink Reply by dr j on April 24, 2012 at 6:25am
Permalink Reply by Kathleen on April 25, 2012 at 1:27am
I may have missed it but I didn't see this bill address any gas storage issues. I hope this bill passes to protect landowners.
Permalink Reply by Inchworm antenna on April 25, 2012 at 6:36am

It doesn't. But it's a O&G Bill, which is a starting point.  We need to make sure it's ammended to acheive a fair royalty for people with flat rate leases of say just $200 per year.  The issus isn't gas storage.  The issue is the horrible royalty described for gas drilling royalty on properties that have a Coliumbia Gas storage lease. 

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on April 25, 2012 at 6:40am
Columbia got away with this forever because nobody thought there was so much money to be made. I'm all for honoring contracts signed between company and private individual but these folks in storage fields are clearly getting a raw deal. I hope the state can find a way to make sure that everyone wins.
Permalink Reply by Inchworm antenna on April 25, 2012 at 6:50am

It will be up to good people making the difference by voicing there support to our politicians.  Columbia also gets away with it by claiming they needed to keep the production rights so that nobody drills through the storage field and steals there gas.  technology has changed and it's no longer a problem. Now storage field operators sell off as major asset that wich they kept under the guise of protection.  If they can change the purpose of protection then we should be able to change the nonsense, no royalty rate to a fair production royalty rate.

Permalink Reply by Kathleen on April 25, 2012 at 7:18am
I agree. I wrote the governor a month or so ago about fair leasing. I got a very short thank you note that never mentioned the subject I wrote about which means it was never read IMO.

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