Ohio County Receives $8M (So Far) from Marcellus Gas Leases
Ohio County, WV is reaping the rewards of leasing county-owned land for Marcellus gas drilling. The county’s land leases with Chesapeake Energy have already resulted in nearly $8 million in one-time lease payments for the county coffers, and soon will mean royalty payments too. Chesapeake has already completed a well on private land adjacent to (and drilling under) county land in The Highlands area. But gas from that well has not yet started to flow due to a delay in getting a pipeline built to the well. Once the pipeline is in place, the county will start receiving royalty checks from that well.
And within the next 12 months, Chesapeake will drill a new well, this time directly on county-owned land at the airport:
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Chesapeake Energy CEO Aubrey McClendon on Monday appeared on Jim Cramer’s Mad Money show on CNBC to talk about the company’s new, oil-rich discovery in the Utica Shale of eastern Ohio. He had some fascinating things to say, including that he expects there to be some 25,000 wells drilled in the Ohio Utica Shale, and that there will be $10 billion per year for at least 20 years (or $200 billion) of investments in the Ohio Utica Shale alone. Yikes! No wonder Gov. John Kasich is “gushing” about Chesapeake’s discovery. An investment of 1/5 of a trillion dollars is a major big deal for Ohio—not only for landowners but also for businesses and for those who will be employed by drilling and associated industries. You cannot overstate how important this discovery is.
MDN has previously commented on the obvious vendetta by the New York Times against the natural gas industry, most particularly in articles written by Ian Urbina (
One of the favorite arguments used as a smokescreen by those opposed to Marcellus drilling is the classic class warfare argument. But it takes a lot of mental gymnastics to make it work in this case as the people who are supposedly the “fat cats” and the “lucky few winners of life’s lottery” are typically family farmers who have been scraping by for generations, just trying to hold on to the land they love. The fact that some of them “get rich” from gas drilling just doesn’t sit right with the elite city-dwellers. Kind of invokes images of the Beverly Hillbillies.
Predictably, now that the New York Times has delivered a journalistic drive-by hit piece claiming that energy companies are using false data and accounting trickery to overstate shale gas reserves, NYT sycophant leftist politicians in New York State are making political hay from it. For opportunistic politicians, it’s all about the seriousness of the allegation, never mind that the allegation is totally false.