Landowners in Trumbull County, Ohio—some 50 to 60 families—are now collectively $7 million richer since receiving their lease signing bonus checks. Including Richard and Ida Faber, who received a check yesterday for $701,580—almost $3,000 per acre.
Richard and Ida Faber were among more than several dozen families celebrating Wednesday afternoon as they signed the shale mineral rights away for their properties.
"I guess I’m going to have to buy my wife some flowers," Richard Faber joked.
He can afford it.
Faber and his wife received a bonus check for $701,580 for leasing the mineral rights of the 240 acres of land they own that runs from state Route 193 to Sodom Hutchings Road.
"The real money comes when we get products out of the wells," Faber said.
Ida Faber said the couple now will do a lot of traveling and visiting their children and other family members.
They leased their shale mineral rights to Halcon Resources. The company has been in oil and gas exploration and production since the 1970s.
James Brumbaugh, president of Shale Investment Fund, said Wednesday’s event was important because the 50 to 60 checks being given out could change the families’ lives significantly. A second set of checks will be issued today. In the two days, about $7 million in checks are being issued.
Shale Investment Fund is a land services company out of Pittsburgh that conducts town hall meetings and canvasses areas to offer property owners opportunities to lease the Utica and Marcellus shale rights of their properties. It also purchases shallow well drillers.*
No drilling has been done yet in Trumbull County—drillers are still leasing, attempting to get enough acreage to then come in and do test drilling. What is the magic number for acreage before drillers arrive to start testing?
Shale Investment Fund began leasing properties in Trumbull county about seven to eight weeks ago.
"Right now, we’ve leased about 15,000 to 18,000 acres," he said. "For a drill acre, we need about 640 continuous acres. We are getting as much as we can, so we can have one pad but drill multiple directions underneath."
Brumbaugh said they would like to obtain about 100,000 acres.*
*Warren (OH) Tribune Chronicle (May 17, 2012) – Drillers cutting checks to Trumbull landowners