Lease & Royalty Payments 45 - Marcellus Drilling News

Carrizo Gets Utica Permit for Trumbull County, OH

May 18, 2012May 18, 2012

Carrizo Oil & Gas has just received a permit for drilling in the Utica Shale in Trumbull County, Ohio. But the company says it’s not going to start its exploratory drilling for the foreseeable future, at least in Trumbull because Trumbull has more restrictive road repair demands, so instead Carrizo will drill its first Utica exploratory well in neighboring Mercer County, PA where the demands on road repair are not as restrictive.

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

Trumbull County, OH Landowners Receive Lease Checks

May 17, 2012May 17, 2012

pile of money 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.

CONSOL Energy | Energy Companies | Lease & Royalty Payments | Mahoning County | Ohio

CONSOL Starts Work on Their First Well in Mahoning County, OH

May 14, 2012May 14, 2012

CONSOL Energy has started work on its first drill pad in Mahoning County, OH. And although the landowner where they’re drilling sold his mineral rights years ago and will receive next to nothing in the way of royalties or lease payments, he’s still happy about it.

O&G Countersues Landowners Claiming Lease Slander

May 14, 2012May 14, 2012

In late March, seven Beaver County, PA families (18 people) filed a lawsuit in Common Pleas Court accusing O&G Investments of Wooster, Ohio of not drilling on their land—and not paying them—for the past seven years. The leases were sold to Chesapeake Energy and at the eleventh hour, just before the leases were set to expire, Chesapeake attempted to initiate drilling to retain the leases, which prompted the lawsuit (see this MDN story for background). Late last week O&G countersued the families:

eCORP International | Energy Companies | Lease & Royalty Payments | New York | Tioga County (NY)

Tioga County, NY Lease Deal with eCORP Falls Apart

May 2, 2012May 2, 2012

It looks like it’s time to put away the champagne bottle and glasses that New Yorkers had brought out to toast a deal in Tioga County, NY that would use LPG (waterless) fracking and perhaps herald an early end to more than four years of a horizontal drilling moratorium.

In March, MDN reported on a deal announced between eCORP International and the Tioga County (NY) Landowners Group, also known as Southern Tier Energy Partners (STEP), to lease 135,000 acres in Tioga County with an eye to using LPG waterless fracking (see this MDN story). After the initial announcement, eCORP released another press statement outlining the deal that both sides had supposedly worked out, a somewhat complicated arrangement in which the approximately 2,000 landowners would be split into 13 independent operating companies and would become part-owners in those companies (see this MDN story).

Lease & Royalty Payments | Resources

Innovative New Way for Landowners to Attract Lease Offers

May 2, 2012May 2, 2012

ShaleNavigator is a web-based natural gas mapping system MDN has highlighted before (see this MDN story). The ShaleNavigator website allows users to display various “layers” of information on a map, including where wells have been permitted, who the driller is, where pipelines are located, and more. Users can zoom in or out and turn layers on or off. A cool service.

ShaleNavigator has just added an important new layer to their mapping system called the “Available Property” layer (see image below). This new layer shows properties from landowners that are available for lease, with the actual property boundaries. Here’s the neat thing: users can turn on the other layers, like recent permits, pipelines, etc. so those interested in leasing property for drilling, like drilling companies and landmen, can visually see the “context” of the offered property. Now that’s really cool.

Brooke County | Chesapeake Energy | Energy Companies | Lease & Royalty Payments | West Virginia

Brooke County School District Signs Lease with Chesapeake

May 2, 2012May 2, 2012

The Brooke County, WV Board of Education on Monday approved a lease deal with Chesapeake Energy that will allow natural gas drilling beneath school-owned property. The deal allows Chesapeake to drill under any of the school’s collective 189 acres, which is scattered throughout the county at different locations. The signing bonus is $3,500 per acre for each acre drilled, plus 18 percent royalties.

Chenango County | Lease & Royalty Payments | New York

TX Land Company Preys on Chenango County, NY Landowners

April 11, 2012April 11, 2012

Perhaps sensing an opportunity with an ongoing, now four-year-old drilling moratorium and the desperation of some landowners in New York State, a Texas-based land company is soliciting property owners in Chenango County, NY to purchase a 50 percent share of their mineral rights for $1,000 per acre. While it may technically be legal, county officials warn landowners that such a deal will damage the value of their property:

eCORP & Tioga County Landowners Become Partners in Lease Deal

April 4, 2012April 4, 2012

tie the knot eCORP International and the Tioga County (NY) Landowners Group, also known as Southern Tier Energy Partners (STEP), released details of their new deal to lease 135,000 acres in Tioga County, NY with an eye to using LPG waterless fracking (press release below). It is an interesting deal—not at all typical of the usual leases between drillers and landowners. Perhaps it’s the way of the future in a low commodity gas price environment?

Here’s the low down: eCORP and STEP crafted a deal that makes landowners majority owners of shell companies that control the land. That is, the landowners will become “drillers,” or rather silent partners with the main driller, eCORP—but partners nonetheless, and they collectively will be majority partners, with eCORP a minority partner. eCORP and STEP are tying the knot and getting married—for this deal.

BP | Energy Companies | Lease & Royalty Payments | Ohio | Trumbull County

BP’s Big Utica Shale Deal, Leases 84K Acres in Ohio

March 28, 2012March 28, 2012

keeping secrets BP has entered the Utica Shale play by signing a lease agreement with with the Associated Landowners of the Ohio Valley (ALOV) group to lease 84,000 acres in Trumbull County, OH. Not sure why, but BP and the ALOV group officially are not disclosing the terms of the deal (as you’ll see in the press release below). However, terms have already leaked:

After 7 Years of No Drilling, PA Families Sue to End Contract

March 28, 2012March 28, 2012

Seven Beaver County, PA families filed a lawsuit yesterday in Common Pleas Court accusing O&G Investments of Wooster, Ohio of not drilling on their land (and not paying them) for the past seven years. The lawsuit also names Chesapeake Energy, who purchased the leases from O&G last year and who now, “at the last minute,” is trying to tie up the land and continue the contract by moving in equipment to start a drill pad—even though they haven’t received any permits to drill.

Lease & Royalty Payments | Ohio | Statewide OH | Utica Shale

Who’s Drilling Where (and How Much) in Ohio’s Utica Shale

March 26, 2012March 26, 2012

score card In one of the best “round up” articles MDN has seen, journalist Bob Downing from the Akron Beacon Journal gives a rundown of who’s drilling where in Ohio’s Utica Shale. From the introduction of the article:

Chevron | Energy Companies | Lease & Royalty Payments | Pennsylvania | Westmoreland County

Chevron’s Offer to Western PA School; Dry Gas Worth More?!

March 14, 2012March 14, 2012

The Hempfield Area School District in Westmoreland County, PA is considering a lease offer from Chevron. So far they aren’t happy with the prices being offered:

Belmont County, OH Landowner Sues Hess Over $100/Acre Lease

March 8, 2012March 8, 2012

Rebecca Bench, a landowner in Belmont County, Ohio is representing herself in a lawsuit she has brought against Hess. The lawsuit alleges that Mason Dixon Energy, whom she signed a lease with (that lease was eventually purchased by Hess) had no legal standing to conduct business in Ohio at the time they convinced Rebecca and her husband Kevin Bench to sign a lease in 2008 for $100 per acre. By comparison, recent lease agreements for Utica Shale leases in the county have gone as high as $5,200 per acre.

Ohio Landowners Sue to Break Utica Lease Contract

February 29, 2012February 29, 2012

A group of landowners in Columbiana County, Ohio have filed a lawsuit seeking to dissolve lease agreements they say were improperly transferred from Anschutz Exploration to Chesapeake.

Energy Companies | Hess | Jefferson County (OH) | Lease & Royalty Payments | Ohio

Hess to Lease OH City Landfill for Drilling – $5,400/Acre

February 23, 2012February 22, 2012

Steubenville, Ohio is about to close a lease deal on a former city landfill. Hess has agreed to pay $5,400 per acre for a signing bonus on the 110 acre site, and 19 percent royalties.