Replies to This Discussion

Permalink Reply by Nick Trolio on July 30, 2010 at 4:09am

I would hold out on leasing your land in Ohio. Personally I don't see them drilling many wells in Ohio. The Marcellus is not as deep in Ohio as it is in parts of PA, WV and NY. Unless they are willing to pay what they are in those states i would just hold off.

Permalink Reply by Billy Bob Meeker on July 31, 2010 at 1:55am

Follow-up to my first post ....

There is another informational meeting to be held on Tuesday, Aug. 3, at 7pm in the Hopedale Social Center in Hopedale, OH. I believe it is another meeting sponsored by the Ohio Farm Bureau and ODNR.

It is also my understanding that there is an individual working to collect names of Harrison landowners that are interested in forming a large-block agglomeration of Harrison Co. property with the intent of creating a stronger negotiation position with the leasing companies. I have heard that this person will be at the Tuesday meeting. (enter a disclaimer here ... I do not know this individual)

Nick ... I share your concerns to some degree. It is difficult to know what "balance" to achieve between the current efforts by energy companies to lock up land vs. whether or not to just wait and see what happens over the next few years. If test wells in eastern Ohio yield disappointing results, the interest by energy companies may dwindle and lease values may drop. But if yields are good, lease and royalty values may increase. Who knows???

Permalink Reply by Nick Trolio on August 1, 2010 at 10:54am

Your absolutely right. I live in Tuscarawas County and they are having a meeting in like a week. I hope more drilling happens around here. Tired of working on the wells in PA and WV.

Permalink Reply by T. Bamburak on August 10, 2010 at 10:23am

As Billy Bob posted at the top of this discussion, we're in Harrison County with less than 10 acres of undeveloped land. Got our first call today - $250 per acre, 5 year lease, 12.5% royalties. That works out to about $475 a year until, and if,any production happens. Current taxes are about $400 a year. As they say, Do the math.

I think I'll tell them no. For now.

Permalink Reply by Billy Bob Meeker on August 10, 2010 at 10:58am

Since you have only 10 acres I suspect you will have very little negotiating power with the energy companies. Suggest that you contact Cheri S. Ramsburg (see her posting in the "$60 per Acre Columbiana Co. Ohio" discussion thread). She is also a Harrison Co. landowner and an attorney and has been creating some owner groups of considerable size for more clout with the energy companies. I would think that, as a small landowner, being a member of one of these groups would get you your best lease and royalty numbers. My opinion only.

Permalink Reply by John Stamos on August 16, 2010 at 5:13am

The Marcellus Shale in Ohio is not in the fairway like PA and WV. It holds less value which is why companies will not be paying the same price for land as they are in more favorable areas.

Permalink Reply by Al Cramblett on September 8, 2010 at 4:16am

A Harrison County Group has been formed. Come on over and join us!

Permalink Reply by Rose Paratto on September 19, 2010 at 2:31pm

Hello Billy Bob. I own 12 acres that are in Harrison county right on the border of Carroll county. I was offered $1,000 / acre by Kenyon. That was after I turned down the original offer of $250 / acre. I am in the process of getting a revision to the lease due to the wording in the paragraph that says they can also drill on contiguous property owned by us. We also own 74 acres right next to the 12 and I didn't want them touching that acreage.

Permalink Reply by Billy Bob Meeker on September 21, 2010 at 2:43am

Rose, I too think that paragraph is a bit insidious as it could easily catch unsuspecting owners into leasing property that they would like to exclude from the lease. I can certainly understand that there could be circumstances where an owner might want to exclude their home property or other special land from the lease. This is a perfect example of why owners need to VERY CAREFULLY read the text of a lease, understand what it means, and ferret out where the land mines might be! The Harrison Co. Stock township group is currently at $1,170/ac with pretty good lease terms.

Permalink Reply by Al Cramblett on September 21, 2010 at 2:54am

Billy Bob,

Could you please share with others the name of the individual negotiating for the Stock Township group and who is the land or energy company that you're negotiating with? Is it Chesapeake Energy? Also, may I ask what the royalty amount is? Thanks for sharing with us.

Al

Permalink Reply by Al Cramblett on September 21, 2010 at 3:22am

Cheri, Has any land owner yet received a check? What is the name of the energy company paying these amounts? Thanks in advance for your reply.

Permalink Reply by Rose Paratto on September 21, 2010 at 2:14pm

Cheri, who is the land or energy company offering $1,170 / acre and 15 % royalty? Is it a 5 year lease with a bonus payment similar to what Kenyon is offering (Chesapeake Energy)?