Ashtabula County, OH - Oil & Gas Discussion

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Comment by Melinda K Jacobs Jarrell-Djoric on May 10, 2012 at 12:34pm

Attended a Wishgard meeting, thinking about signing. Any input is greatly appreciated.

Comment by Chuck Becker on April 6, 2012 at 1:28pm

Just catching up on the news regarding the BP Trumbull County leasing of 85,000 acres at $3900 per acre.  Sounding good.  Anyone hear anything else since last week?

Comment by Loreto Accettola on January 12, 2012 at 6:25am

Cheasapeake announced it will not drill it's exploratory well in the Andover Oh. area until Mid year 2013.

Comment by Brad on January 2, 2012 at 6:12pm

A pubic informational meeting with  Robert Rea from Buckeye Mineral will be held at the Pierpont Township Firehall, January 12, 2012 at 7pm. 

Comment by Rambo1207 on December 23, 2011 at 10:09am

Consider the new group to be formed in the next several weeks by ALOV (Associated Landowners of the Ohio Valley).  They are taking landowner contact info now and they will contact interested landowners soon.  ALOV has worked with landowners extensively in southeastern Ohio (started by Bob Rea) and they have published some excellent leases online.

Also consider contacting WashingtonPALawyers.com.  This group of attorneys is currently signing agreements (not leases) with interested landowners.  Landowners can terminate their agreement at any time without any cost.  The agreement allows the attorneys to organize a group of landowners and develop a lease for them to sign.  They then market the lease to drillers and either charge the landowner or the driller a fee.  These lawyers have also published a very desirable lease online.  Look for the F&M#2 group link on their website.

Comment by Loreto Accettola on December 4, 2011 at 8:46pm

Brad,  Thanks. Very interesting.  There are a lot of brokers out there trying to get an undeserved piece of the pie.  Loreto

 

Comment by Brad on December 2, 2011 at 6:26pm

Loreto,

I like the lease that Buckeye Mineral has.  It is very clear that the royalties are based on the GROSS revenue that come out of the well.  Other companies will tell you that their lease is GROSS, but they refuse to use "Gross" in their terminology.  If they don't use gross, they at least need to have a "market enhancement clause" addendum that eliminates the gas company being able to write off production costs before determining the royalty. Buckeye Mineral's lease also limits the pool to no more than 640 acres p/well.   The extension of the primary term is only 3 years, instead of the common 5 years.  Their lease ensures that the bonus payment is paid within 90 days.  And most importantly, they have a proven track record of (at least as ALOV)  negotiating the best price WRT royalty and signing bonus.  The also have numerous addendums that protect the land, water, etc.  The only problem is Buckeye has not officially started a group in Ashtabula.  I think they want to resolve their 80,000 acre Trumbull lease before moving into Ashtabula.  I e-mailed them today to see if they have developed any official plans yet, other than gathering names.  I will let you know when I hear something.  The more names they gather the more likely they are to move forward.  I did contact Tri-State Energy as well.  They are a "middle man" that are working on behalf of the oil companies.  Their end game is to re-sell their leases to a large driller.  They are offering $3,000 p/acre in Southern Ashtabula and 17% royalty.  Their lease appears to be net royalties, has a 5 year extension on the primary term, payment is within 180 days, and their pooling units are 1280 acres.  We can do a lot better than that.  Just need to be patient and diligent. 

Comment by Loreto Accettola on December 2, 2011 at 5:26pm

Brad,  Who would you recommend as a leasing agent?   

Comment by Brad on December 2, 2011 at 9:45am

The more a research things it appears that NELA is joke........just a bunch of environmentalists who want to tie up land for years so drilling can't take place in my opinion.  It is evident by their news and resources section that they are almost anti-drilling.  I'm all for safe drilling, but fracking has nothing to do with the few instances where water might have been contaminated as the result of drilling.  Fracking has been done safely for 40 or 50 years.   I am not about to sign with NELA and let them make demands of the oil companies that make it nearly impossible to drill.  I am definitely more in line with someone like Buckeye Mineral who has a more balanced approach. 

Comment by Rambo1207 on November 30, 2011 at 4:34pm

I also have left my contact info with ALOV who indicate their intent to call me in early December.  With past experience of similar intents, I will call them back and not wait for their call.  Those who more aggressively pursue these matters are better served than those who wait to be called.  I similarly have my name in with another group that you can look up at:  www.washingtonpalawyer.com.  Their lease is a pretty good one and they have held at least one meeting in Jefferson and are working through local attorneys.  Let's keep in touch.

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