News of Chesapeake Energy’s major oil discovery in eastern Ohio’s Utica Shale prompted officials in Columbiana County to renegotiate their about-to-be-signed lease with Chesapeake. It was a smart move for the county—netting them an additional $255K:
A decision to renegotiate a natural gas lease that had already been approved by Columbiana County commissioners will result in an additional $255,600.
Commissioners agreed Wednesday to enter into a revised lease agreement with Chesapeake Energy for $2,700 an acre, $450 more than the $2,250-per-acre figure listed in the original agreement they approved at their July 13 meeting.
The original agreement was approved, pending review by the prosecutor’s office and county Engineer Bert Dawson. Afterward, Commissioner Mike Halleck decided to see if they could get a bit more from Chesapeake.
"Through Mike’s negotiations we were able to make a bit more money," said Commission Chairman Jim Hoppel.
The county has 568 acres to lease, and at $2,250 an acre the county was poised to receive $1.27 million under the original agreement. The higher figure means the county will get $1.53 million. The royalty figure remains unchanged at 17.5 percent.*
Lesson for landowners: Make sure you’re getting a fair price for leasing your property—it may be worth more than you think.
*Lisbon Morning Journal News (Aug 4, 2011) – County gets more for lease