Replies to This Discussion

Permalink Reply by Jim Litwinowicz on March 19, 2014 at 1:36am

First, call all your neighbors, every one within a mile or two as they can all be in one unit.  See who they are signed with, who is making offers, what the offers are. Try getting them to work together. Have a few group meetings to see what they want.  Ask who has a background, knowledge base that will help.  Realtors, developers, contractors, members of Farm Bureau, government officials, environmental background, etc.   

Read as much as you can online.  Go to the local ag office as they have lots of info. Once you have some knowledge, talk to several attorneys.  Ask them lots of technical questions to see if they know what they are talking about.  All attorneys claim to know oil and gas but few really do.

Don't know how many acres you have but this can be a great opportunity.  You will only get one shot at doing it right. And you will have to live with the lease you sign for the rest of your life.

Good luck

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Permalink Reply by jeff lawson on March 19, 2014 at 4:48am

Thanks Jim. I only have 5 acres and my neighbors have about the same a piece. Everyone of us are new at this and are interested. Is the acreage that i have enough to drill? This is the question that my neighbors will have as well. Not sure if a drill gets placed on everyone's land or just one to combine all the land. Please advise me of these questions if you have an idea. Don't want to waste our time if more acreage is needed. There would be at least 4 to 6 pieces of land that would be in the lease I'm guessing.Thanks for your help and your response.

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Permalink Reply by Philip Brutz on March 19, 2014 at 5:07am

Jeff you may want to use the ODNR Oil and Gas well viewer to locate the gas wells in your area:https://gis.ohiodnr.gov/website/dog/oilgasviewer/

It will help you find a drilling company that is working in your area.  The wells in your county are shallow wells, not the large deep wells into the Utica or Marcellus shale so they do not need a very large drilling pad.

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Permalink Reply by Jim Litwinowicz on March 19, 2014 at 5:06am

Drilling units are usually 300 acres or more. They will not drill on 5 acres as each pad is 5-10 acres. They will lease enough people all around to aggregate them into a unit. Thats why I said to talk to more than just a couple neighbors.  If you can gather a group of 500-1000 acres you will more leverage in negotiating a lease.

Go through the archives on this site and read old discussions.  Go to the search box and look up various things like "unit size," "lease terms," "lease negotiations."  You have a lot to learn, take your time, and don't get discouraged.

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Permalink Reply by Philip Brutz on March 19, 2014 at 5:31am

The wells in Morrow county are all small shallow wells that do not need 500-1000 acre drilling units.

http://codes.ohio.gov/orc/1509.021

(B) The surface location of a new well shall not be within one hundred fifty feet from the property line of a parcel of land that is not in the drilling unit of the well if the parcel of land is located in an urbanized area and directional drilling will be used to drill the new well unless the owner of the parcel of land consents in writing to the surface location of the well less than one hundred fifty feet from the property line of the parcel of land and the chief approves the written consent of that owner. However, the chief shall not approve the written consent of such an owner when the surface location of a new well will be less than one hundred feet from the property line of the owner's parcel of land that is not in the drilling unit of the well if the parcel of land is located in an urbanized area and directional drilling will be used.

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Permalink Reply by 0i7okn54zwbdo on March 19, 2014 at 5:35am

Morrow County was home to Ohio's big Trempealeau boom back in the 60's.  Don't know of anyone doing full scale operations out that way.  Frankly I'm shocked to hear that there's an inch of ground in the whole county that hasn't yet been drilled.

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Permalink Reply by Philip Brutz on March 19, 2014 at 5:45am

If you look on the ODNR map the whole county looks like it is covered with colored Easter eggs.  Not many undrilled parcels.

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