Columbiana County 11 - Marcellus Drilling News

OH Shale Gas Processing Plant Work Gets Underway

October 2, 2012October 2, 2012

In May, MDN told you about a new $400 million shale gas collection and processing plant being built in Columbiana County, Ohio by a joint venture between Chesapeake Energy, M3 Midstream and EV Energy Partners (see this MDN story). The plant will be built on a 117-acre site over a 5-year span with the first part due to go online in 2013.

A quick update on the new plant:

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:

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…

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:

Columbiana County | Lease & Royalty Payments | Ohio

Columbiana County, OH Sees Slowdown in Leasing – Good or Bad?

August 27, 2012August 27, 2012

Leasing activity in Columbiana County, Ohio is slowing down. Is that a bad thing? Or a good thing?

Columbiana County | Energy Companies | Hilcorp Energy | Ohio

Hilcorp’s First Utica Permit for Columbiana County, OH

August 23, 2012August 23, 2012

Hilcorp Energy has just received its first permit to drill a Utica Shale well in Columbiana County, Ohio. Although this is Hilcorp’s first permit, it is the 49th permit for Columbiana County.

Chesapeake’s Construction Investment in Ohio Continues

August 20, 2012August 20, 2012

More jobs and more economic activity are on the way in eastern Ohio courtesy of Chesapeake Energy’s investments to build a new office complex near St. Clairsville (Belmont County) and their investment in a natural gas processing plant (Harrison/Columbiana counties). The new office complex is due to open in November while the processing plant is due to come online in 2013.

OH Union Wins Grant for Utica/Marcellus Job Development

August 13, 2012August 14, 2012

[UPDATE BELOW] Plumbers and Pipefitters Local 396 won a competitive grant process to receive funds for job development in the Utica and Marcellus Shale plays. Local 396 craftsmen consist of plumbers, pipefitters, steamfitters, and HVAC/refrigeration fitters.

Chesapeake Buys 28K Acres of OH Leases from Everflow

August 1, 2012August 1, 2012

MDN reported on Monday that Chesapeake Energy had purchased the rights to leases and had transferred ownership of those leases for more than 14,000 acres from two counties in Ohio—Trumbull and Mahoning (see this MDN story). We now know that’s only half of the number of acres they transferred. We now also know who they bought the rights from and how much they paid for those rights.

Columbiana County | Hydraulic Fracturing | Industrywide Issues | Ohio

Columbiana Port Authority Sells Water for Fracking

July 19, 2012July 19, 2012

The Columbiana Port Authority (Columbiana County, OH) has voted to sell water to Aqua Terra Asset Management who will in turn sell it to Marcellus and Utica Shale drillers for use in hydraulic fracturing. The deal calls for Aqua Terra to withdraw the water from two fire hydrants in East Liverpool, to be charged $9 per 1,000 gallons.

Columbiana Port Authority Helps Shale Industry

July 17, 2012July 17, 2012

The Columbiana County (OH) Port Authority on Monday passed a measure stating they intend to sell 3.6 acres in Wellsville, OH to Marathon Petroleum for $2.4 million. The property is part of the Port Authority’s riverfront industrial park and sits adjacent to Marathon’s storage tank/transfer facility. Marathon will use the property for trucks transporting oil and gas produced from local shale drilling.

Salem, OH to Sign Lease Deal with Chesapeake for $7K+20%

July 6, 2012December 19, 2012

The City of Salem, Ohio, which straddles both Columbiana and Mahoning counties, is due to sign a three-year oil and gas lease with Chesapeake Energy today for 381 acres of land owned by the city.

The deal calls for an initial $3,500 per acre signing bonus and 20% royalties, with an additional $3,500 per acre for a three-year extension. All told, it will be $7,000 per acre for a six-year lease—one of the highest amounts MDN has seen (if the three-year extension is exercised).

Chesapeake Energy | Columbiana County | Energy Companies | Lease & Royalty Payments | Ohio

Columbiana County Lease with Chesapeake, Highest Bonus Ever

June 21, 2012June 21, 2012

broken the record Columbiana County, OH has just signed a deal with DPS Penn (an agent for Chesapeake Energy) to lease 548 acres for Utica Shale drilling. And they astutely doubled their money from the original offer from DPS a year ago. The new terms of the deal, just signed, are for $5,850 per acre and a 20 percent royalty. Columbiana also negotiated the lease term down to three years. A typical lease is five years.

The deal makes Columbiana breaks the record as the highest signing bonus granted to any government body for a Utica (or Marcellus) Shale lease deal.

Columbiana County, OH Landowners Seek Minimum Royalty Law

June 8, 2012June 8, 2012

A few weeks ago MDN highlighted a story about a couple living in Columbiana County, Ohio who were due to get more than $375,000 in lease payments from Chesapeake Energy for their 65 acres of property, but the deal fell through when Chesapeake discovered the land under the property was already locked into a decades-old lease by Columbia Gas Transmission. The couple is suing to be released from that contract (see this MDN story).

We have word today that other landowners from the same area also affected by the Columbia lease are trying a different tact: Pass a state law imposing minimum royalties.

Columbiana County | Lease & Royalty Payments | Ohio | Statewide OH

The Value of Land for One Eastern Ohio Landowner

June 4, 2012June 4, 2012

How much are your lease rights worth? It all depends on where your land is located. Right now, eastern Ohio seems to be commanding the best lease and royalty deals. PBS station WVIZ in Cleveland aired a story yesterday about an 82 year-old woman, Jackie Pendleton, who lives by herself on 62 acres of land in Columbiana County, OH. The offers she’s received for both her mineral rights and the outright purchase of her entire property have made her head swim.

Columbiana County | Lease & Royalty Payments | Ohio

Some OH Landowners Get $5,800/Acre While Neighbors Get $4/Acre

May 23, 2012May 23, 2012

contract A cautionary story for landowners comes from Columbiana County, Ohio. Some landowners, like Patrick and Jill McNicol, own land encumbered by old gas leases going back fifty years they knew nothing about. What does it mean? They’ll get $4 per acre for their land (and no royalties), while their neighbors will get $5,800 per acres and 12-20 percent royalties.

Is there any recourse for the McNicols? Maybe.