Notes from the Utica – January 2012
Written by Eric Johnson about Leases on January 4, 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). However, not every company is interested in the same area.
It can be extremely difficult to figure out how to get the highest price for your property. I have worked with many landowner clients since the inception of the Utica shale play. We keep track of the offers in terms of upfront lease money and royalty. We also track the offers geographically so that we know which companies are interested in which counties and townships and what the ‘going rate’ is for a particular area. Because we understand the lease market, we are able to negotiate on your behalf and will attempt to get you the highest price available. Importantly, we also have contacts within the major Utica companies and can typically work more quickly than a landowner could on their own.
About Eric Johnson
ERIC C. JOHNSON attended Ohio State University, earning a degree in economics and then graduated from the University of Cincinnati Law School in 1983. His areas of practice are personal injury law, real estate, oil and gas, contracts, litigation and appeals.