Encino Selected to Frack Under 62 Acres in Leesville Wildlife Area
GREAT news! The Ohio Oil and Gas Land Management Commission (OGLMC) met for about 15 minutes on Friday and voted to award Encino Energy the right to drill under (not on) 62.5 acres of Leesville Wildlife Area located in Carroll County. Encino will pay a $218,715 signing bonus and 18% royalties on any oil and gas produced. Landowners in Carroll County, pay attention: That works out to be a hefty $3,500 per acre for a signing bonus. Read More “Encino Selected to Frack Under 62 Acres in Leesville Wildlife Area”
For the week of Mar 10 – 16, the number of permits issued in the Marcellus/Utica to drill new shale wells increased by nine from the previous week. Last week, 31 new permits were issued, with 16 going to the Keystone State (PA). EQT (and its subsidiary Rice Drilling) scored nine permits across Fayette, Greene, and Washington counties in southwestern PA. Range Resources took five permits, all of them in Washington County. And Rev Resources received two permits in Tioga County. 
A lawsuit that slipped by us (and is still playing out) that began in Carroll County, OH, has major ramifications for landowners and drillers across the state. The case is EAP Ohio LLC v. Sunnydale Farms LLC, et al. in which 13 oil and gas leases were executed in 2008 and 2009 in Carroll County, Ohio. The 2008 Leases contained an identical royalty clause that limited post-production deductions to three categories: transportation, compression, and/or dehydration to deliver the gas for sale. After drilling wells on those properties, EAP (Encino Energy) deducted several other items from royalties, including costs incurred for processing, treating, fuel, gathering, and trucking. The lawsuit tussles with the issue of how terms are defined and whether these “extra” categories are allowed under the lease’s language. 
Encino Energy wants to establish new oil and gas wells on Leesville Lake lands owned by the Muskingum Watershed Conservancy District (MWCD) in Carroll County. The conservancy district’s board of directors is expected to consider a lease agreement with the company’s Ohio affiliate at its meeting tomorrow. The left is apoplectic. The MWCD manages over 54,000 acres of land in Ohio. Over the past decade, the MWCD has leased over half of that land for shale drilling. This isn’t the conservancy’s first rodeo with shale drillers. Encino is one of four operators the MWCD has leased with and is the largest of the four that leases MWCD-owned acreage.