OH Landowner Group Seeks Driller for 45K Utica Shale Acres
The Smith-Goshen Landowners Group in Belmont County, OH currently has 600 members and 45,000 acres of Utica Shale land available for lease. But they’re taking it slow and looking for a lease that will guarantee the safety of their farms and water supplies, according to Larry Cain, chairman of the group. They’re also looking for an even better deal than other landowners in Belmont County recently got from XTO Energy (a subsidiary of Exxon Mobil).
Another group of Belmont County landowners signed Utica deals with Exxon Mobil subsidiary XTO Energy in September. The terms of this contract called for the owners to receive $4,950 per acre on lease payments and 19 percent on production royalties once gas starts flowing from the property.
Cain did not want to discuss the exact monetary terms his group of about 600 property owners is seeking. However, even at a minimum of $5,000 per acre, 45,000 acres would yield $225 million in lease payments for the Belmont County owners.*
Cain also said the group will continue to add new members and acreage until a deal is struck.
*The Intelligencer/Wheeling News-Register (Nov 28, 2011) – Group Eyes 45,000 Acres of Utica Shale