Ohio

Leases

Gas and oil leases are the first step to gas and oil production. Leases – like contracts – describe the rights of the landowner, and the obligations of the producer. Disputes between landowners and producers nearly always can be resolved by looking to the lease. These articles discuss the basic structure of a lease, unique clauses, as well as case law that interprets lease clauses.

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Written by
about Drilling and Producing + Leases + Pipelines
on July 4, 2012

Notes from the Utica – July 2012

Six months ago I wrote an update on Ohio oil and gas leasing. Since that time, lease activity in Ohio has changed somewhat. New Utica wells continue to be drilled, but it can take a while to learn about their production capabilities. Some of these wells will be drilled and left alone for a period of at least  4 weeks. This is done for geological reasons and has to do with the pressure of the reservoir. Drilling companies also like to keep the success of their wells secret lest they inform their competitors of valuable drilling strategies. For the most part, the same energy companies I mentioned in January are still around: Chesapeake, Devon, Hillcorp, Shell, Anadarko, Hess, Gulfport, Consol, and XTO (Exxon).…

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Written by
about Leases + Ownership and Transfers
on June 21, 2012

Buying Land With Mineral Rights

We get lots of phone calls from folks who want to purchase land, either at a sheriff’s sale, at auction, or just from a local seller. They want to know if the mineral rights are included in the sale. These people want to buy land and quickly lease the mineral rights for a sizable signing bonus that can often offset a large portion of what they just paid for the land.

In a private transaction, the Seller will frequently make that information available to the buyer. In an auction or at a sheriff’s sale, most often the auction or title company will make no guarantees about the mineral rights.…

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Written by
about Leases + Ownership and Transfers
on June 13, 2012

Why Haven’t I Been Offered an Oil and Gas Lease?

Many of our clients seek our expertise in reviewing an oil and gas lease that has been offered to them. These people have been approached by oil and gas companies that are interested in accessing the oil and gas under their land. When reaching out to landowners, these companies usually have a pretty good idea as to whether or not that particular landowner is eligible for an oil and gas lease. Even so, sometimes landowners who are eligible for an oil and gas lease aren’t offered a lease. This could be for a number of reasons. Acreage size is probably the most important of these reasons.…

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Written by
about Leases
on June 10, 2012

Breaking an old Oil and Gas Lease

How do you determine if your oil and gas lease is still in effect?

This is one of the most common questions we receive. It typically comes from landowners who had signed an oil and gas lease many years ago and want to take advantage of the current lease frenzy. That is, landowners who have signed an oil and gas lease in the 1970’s or 1980’s want to know if they are eligible for a new lease and the signing bonuses that come with it. The answer to this question can be very valuable, as bonus payments for signing an oil and gas lease today are much much higher than they were twenty or thirty years ago.…

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Written by
about Drilling and Producing + Leases + Royalties
on January 4, 2012

Oil and Gas Lease Forfeiture or Expiration in Ohio

Recently, I’ve been receiving a number of calls from prospective clients who are looking for ways to extract themselves from an old lease that covers their property. Various scenarios exist: (1) an old lease was signed years ago, but no well was ever drilled; (2) a well was drilled, but has sat idle for some time, with no royalties being paid; (3) a well was drilled and royalties have been paid, but they are sporadic or of a very small amount. With the recent increase in leasing in Ohio, and considering the large sums being offered, these clients want to know if they can cancel the old lease to allow them to sign a new lease for large dollars.…

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about Leases
on

Notes from the Utica – January 2012

In the last six months we have seen a lot of changes in the oil and gas leasing game. More wells have been drilled and more data about the Utica Shale is now available. This has created a lot of buzz in the oil and gas world. There has been a real surge in interest by many oil and gas companies. There are new “hot” counties where lease prices have escalated substantially, while other counties are of less interest to the oil and gas companies. More companies are moving into this play every week. Major companies now include: Chesapeake, Devon, Hillcorp, Shell, Anadarko, Hess, Gulfport, Consol, and XTO (Exxon).

…

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Written by
about Leases + Ownership and Transfers
on January 2, 2012

Group Leasing or Group Mineral Selling

We are often asked whether a landowner should join a “group.” The short answer is “it depends.” Certain landowners will benefit from joining a group while others will do better standing alone.

Factors we consider include:

  • How many acres do you own?
  • Are you willing to sign a lease that allows the company to drill on your property?
  • Are your neighbors leased?
  • If your neighbors are leased, did they sign with the same company that has approached you or a different company?
  • Is the group made up of large landowners or small landowners?
  • Is the group centered around your property or spread out?
…

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