Anadarko Offers $3K/Acre + 17.5% Royalties for Utica Lease
Coshocton County in eastern Ohio requested Utica Shale lease offers for 436 acres of county-owned land no longer being used for any other purpose. There was only one offer put on the table, by Anadarko. Under the five-year lease offer, the county would receive a $1.3 million signing bonus ($3,000 per acre) and 17.5 percent in royalties.
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West Virginia, Pennsylvania and Ohio are all in the hunt to land an ethane cracker plant in their respective states (see the
Competition to attract an ethane cracker plant is heating up. West Virginia has made no bones that they intend to be the winners of the investment that will be made to build an ethane cracker plant to be built by Shell. The plant will cost upward of $2 billion and will create thousands of jobs to build the plant, operate the plant, and just as importantly, in the industries that will locate near the plant once it’s operational. It’s an economic jackpot worth $5 billion or more, and those who are in the game to attract it are in it to win.