Lease & Royalty Payments

Energy Companies | Halcon Resources | Lease & Royalty Payments | Mahoning County | Ohio | Trumbull County | Utica Shale

Halcon Resources Responds to Lordstown, OH Landowners Group
November 30, 2012November 30, 2012

A few weeks ago MDN told you about a new landowners group in Lordstown, Ohio, formed in response to requests from Halcon Resources who is asking landowners in the area to sign modifications to existing 20-50 year-old leases on their property to allow for Utica Shale drilling (see this MDN story). At the time the new Lordstown Regional Landowners Group represented 5,000 of the 31,000 acres in Trumbull and Mahoning counties (Ohio) Halcon had recently purchased the rights to.

Apparently the movement has picked up steam and Halcon issued a press statement yesterday saying they want to cooperate with landowners to make them money on royalties, but stopped short of saying they would renegotiate leases, which is the aim of the landowners group.

Read More “Halcon Resources Responds to Lordstown, OH Landowners Group”
Columbia Pipeline Group | Columbiana County | Energy Companies | Energy Services | Hilcorp Energy | Lease & Royalty Payments | NiSource | Ohio

Some Brinker Field (OH) Leases Revised, Others in Lawsuit
November 23, 2012November 23, 2012

Hilcorp Energy was hired by Columbia Gas’ parent company NiSouce to drill Utica Shale wells in the Brinker Storage Field, a 35,000 acre area in Columbiana County, Ohio that Columbia has used to store natural gas going back more than 50 years. The original leases with landowners in the Brinker, leases passed down to new landowners over the decades, mean that landowners get zippo from any drilling—no lease payments and no royalties (see this MDN story for background).

Since the MDN story that first appeared in September, about 100 landowners have signed on to a lawsuit against Columbia and Hilcorp over the lease issue. But also since September, Columbia and Hilcorp have cut new leases with landowners not party to the lawsuit. We get the details of the lease terms from a story that talks about Hilcorp setting up a new office in Columbiana to work on land deals:

Read More “Some Brinker Field (OH) Leases Revised, Others in Lawsuit”
Carroll County | Chesapeake Energy | Columbiana County | Economic Impact | Energy Companies | Harrison County | Industrywide Issues | Lease & Royalty Payments | Ohio | Statewide OH | Utica Shale

Chesapeake Says 3 OH Counties are “Core of the Core” in Utica
November 21, 2012November 21, 2012

On the third quarter earnings call with analysts earlier this month, Chesapeake Energy officials were asked about the Utica Shale and their thoughts, now more than a year in, of how the Utica stacks up against the Eagle Ford, and how Chesapeake’s “core of the core” strategy is working in the Utica. Chesapeake CEO Aubrey McClendon answered the question this way, identifying the three counties in Ohio that are “the core of the core” for the company:

Read More “Chesapeake Says 3 OH Counties are “Core of the Core” in Utica”
Broome County | Chesapeake Energy | Energy Companies | Industrywide Issues | Inflection Energy | Lease & Royalty Payments | Litigation | New York | Statewide NY | Tioga County (NY)

Judge Rules Against Chesapeake, Inflection in NY Lease Case
November 19, 2012November 19, 2012

An important court case has ruled in favor of landowners against energy companies in New York State. Last Thursday, U.S. District Court Judge David Hurd ruled against Chesapeake Energy and Inflection Energy (and in favor of landowners) in a case where the companies had tried to extend leases beyond the original term by invoking “force majeure,” a legal phrase that means the terms of the lease could not be carried out due to extenuating circumstances.

Chesapeake and Inflection had argued that New York State’s moratorium on hydraulic fracturing of shale meant they could not drill on New York land for which they hold leases. But as with many things legal, the story is not so simple…

Read More “Judge Rules Against Chesapeake, Inflection in NY Lease Case”
Chesapeake Energy | Energy Companies | EnerVest | Gulfport Energy | Lease & Royalty Payments | Meetings | Utica Shale

EnerVest CEO Contradicts McClendon: Utica Oil Will be Big
November 15, 2012November 15, 2012

At the Developing Unconventional Gas (DUG) East Conference in Pittsburgh yesterday, EnerVest CEO John Walker contradicted the view of Chesapeake CEO Aubrey McClendon. McClendon said the Ohio Utica Shale will not produce much oil—at least for Chesapeake (see this MDN story). Walker said he believes the Utica will produce a lot of oil—that is, once they figure out the “right completion method.”

Gulfport’s CEO Jim Palm also spoke glowingly about the Utica at the conference. Gulfport, you may recall, has the highest producing Utica well so far (see this MDN story). The conference is organized by Hart Energy, who provided information stating lease payments in the Ohio Utica Shale have reached as high as $8,000 per acre.

Read More “EnerVest CEO Contradicts McClendon: Utica Oil Will be Big”
Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Mahoning County | Ohio | Statewide OH

Lawyer Cautions ALOV Landowners on Revising Signed Leases
November 13, 2012November 13, 2012

At a meeting of the uber-large Associated Landowners of the Valley (ALOV) landowner group last night in Youngstown, Ohio, lawyer Alan Wenger warned the 500 landowners in the audience that landmen are knocking on doors once again, this time asking landowners already signed to modify their leases.

Wenger told landowners what energy companies like Chesapeake are asking for, and what landowners need to consider before signing:

Read More “Lawyer Cautions ALOV Landowners on Revising Signed Leases”
Columbiana County | Lease & Royalty Payments | Ohio

Latest Bonus/Royalty Numbers Mentioned in Columbiana County
October 15, 2012October 15, 2012

Leetonia Shale LLC is a for-profit company hoping to band residents together into a coalition in the Leetonia and Washingtonville, Ohio area to collectively lease their land to a drilling company. Terry May, president of Leetonia Shale, estimates there’s about 1,400 acres of smaller parcels left in the area that are currently not leased for drilling.

May held a meeting over the weekend at Leetonia High School to update area residents on progress and to attract more people to the coalition. Among the people attending was Franklin Square resident Don Shepard, who had this to say about the latest numbers being mentioned by May for signing bonuses and royalties in that part of Columbiana County:

Read More “Latest Bonus/Royalty Numbers Mentioned in Columbiana County”
Lease & Royalty Payments | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Lease Bonus Payments for Marcellus & Utica Reach New Highs
October 12, 2012October 12, 2012

Because the sale price of domestically produced oil and natural gas has gone down over the past year, royalties for landowners have gone down as well. However, the bonus payments landowners receive when signing a new lease agreement have gone up—way up in the Marcellus and Utica Shale.

A newly released survey (embedded below) from Farmers National Co., a real estate management company for property owners, shows a dramatic increase for bonus deals in West Virginia (up 1.75 times), in Pennsylvania (more than doubling, up 2.3 times), but most dramatically, in Ohio (up nearly 13 times from a year ago). The largest reported lease signing bonus in Ohio for 3Q12 was a whopping $8,200 per acre.

Read More “Lease Bonus Payments for Marcellus & Utica Reach New Highs”
Bradford County | Economic Impact | Hydraulic Fracturing | Industrywide Issues | Lease & Royalty Payments | New York | Pennsylvania | Statewide NY

Bradford County, PA Landowners – $160M in Royalties (So Far)
September 25, 2012September 25, 2012

Listen up New York State: Bradford County, which borders Tioga and Chemung counties in New York, has generated $160 million in natural gas royalty payments to landowners—so far. There’s much more to come.

Here’s the low-down on drilling in Bradford County:

Read More “Bradford County, PA Landowners – $160M in Royalties (So Far)”
Chesapeake Energy | Columbiana County | Energy Companies | Lease & Royalty Payments | Ohio

Columbiana Port Authority Votes to Lease Land to Chesapeake
September 25, 2012September 25, 2012

The Columbiana County Port Authority (Ohio) voted last night to lease some Port Authority land to Chesapeake for shale gas drilling. Here’s the terms of the deal:

Read More “Columbiana Port Authority Votes to Lease Land to Chesapeake”
Energy Companies | Halcon Resources | Lease & Royalty Payments | Mercer County | Pennsylvania

Halcon Says No Drilling for Half of Mercer County Landowners
September 20, 2012September 20, 2012

About the half the landowners in Mercer County, Pennsylvania who signed leases with Halcon Resources (via CX Energy) to allow shale gas drilling on their property found out Monday night that Halcon is not exercising their lease options. The other half found out Halcon will go forward with drilling on their property.

What happened?

Read More “Halcon Says No Drilling for Half of Mercer County Landowners”
Columbia Pipeline Group | Columbiana County | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Lease & Royalty Payments | Litigation | Ohio

Columbia Gas & Hilcorp Meet with Landowners in Brinker Field
September 17, 2012September 17, 2012

More than 50 years ago, landowners in a 35,000 acre area of Columbiana County, Ohio signed a lease with Columbia Gas that allows Columbia to store natural gas supplies in the Berea Sandstone formation. Known as the Brinker property back then, today it’s referred to as the Brinker Storage Field. The lease that was signed, and passed on to new landowners purchasing “Brinker” property, means landowners won’t see a penny from drilling that’s about to begin on their property by Hilcorp Energy (see this MDN story for more background). Columbia Gas will keep all of the signing bonus and royalty money for itself. Unless…

Read More “Columbia Gas & Hilcorp Meet with Landowners in Brinker Field”
Antero Resources | Belmont County | Energy Companies | Lease & Royalty Payments | Ohio | Utica Shale

Barnesville, OH Signs Lease with Antero, Receives $6M
September 12, 2012September 12, 2012

The Village of Barnesville, OH (Belmont County) just signed a lease with Antero Resources to allow shale drilling on 1,047 village-owned acres. The village now has an additional $6 million in revenue because of it.

Here’s the details about the deal, including the per-acre price and royalty percentage (some of the highest we’ve seen):

Read More “Barnesville, OH Signs Lease with Antero, Receives $6M”
BP | Columbiana County | Energy Companies | Lease & Royalty Payments | Ohio

BP Landmen Very Active in Columbiana County, OH
September 5, 2012September 5, 2012

More evidence of BP expanding their lease purchases in Ohio: Gunter Land Services, a landman agent for BP, has set up offices in Lisbon, Canton and Poland, OH. BP has also set up offices in Warren, OH. The landmen are actively canvassing landowners in the area in hopes of stringing together a new large block of acreage that BP can begin drilling “sometime next year.”

From the Youngstown Business Journal:

Read More “BP Landmen Very Active in Columbiana County, OH”
BP | Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Ohio | Statewide OH | Utica Shale

An Update on Ohio’s Utica Shale – Facts & Figures
September 5, 2012September 5, 2012

An article in Crain’s Cleveland Business yesterday takes a look at the pattern of investment in the Utica Shale play in Ohio. According to the article, the Utica follows the same model found in other areas of the world: First smaller independent oil and gas companies invest doing the “retail” work of going house to house to get leases signed. They may even drill a few wells. But soon after, larger o&g companies, the “majors” descend and buy up many of those investments.

The article shares some interesting facts and figures about the current status of investment and development of the Utica in Ohio, among them:

Read More “An Update on Ohio’s Utica Shale – Facts & Figures”
Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Marshall County | Ohio County | West Virginia

Royalty Checks Coming for Landowners in WV Panhandle
August 31, 2012August 31, 2012

Landowners who leased with Chesapeake Energy and who live in Ohio and Marshall counties in West Virginia’s northern panhandle may soon have big smiles on their faces. Chesapeake is turning on the gas to pipelines in those locations, and once the gas starts flowing, so too will royalty checks.

How soon should landowners expect their first checks?

Read More “Royalty Checks Coming for Landowners in WV Panhandle”