Ohio Shale Oil & Gas Leasing
In recent years, an oil and gas boom has begun steamrolling its way across Ohio creating great economic prosperity as well as great economic and ecological concern. In order to help landowners make the important decisions necessary to protect their property and financial interests, MRWIG has hosted meetings detailing some excellent steps landowners can take to ensure their goals are met in the process.
Landowners can greatly increase their success in taking advantage of the boom by educating themselves about the geological make-up of Ohio, what the drilling process is like, and understanding a modern lease. After deciding whether the process is right for you, a detailed analysis of lease agreements should be made/negotiated with oil and gas companies.
There are numerous options landowners have in constructing a lease as well as numerous pitfalls landowners need to be very cautious about. Despite all efforts a landowner can make to protect themselves, it is highly recommended that a lawyer, experienced in oil and gas leases, look it over before signing. The lawyer will be able to explain much of the jargon that landowners may have over looked or not fully understood, greatly minimizing unforeseen implications. It is important to understand that the vast majority of oil and gas companies do not desire to swindle you, but they do desire to have leases that are very general and create the greatest flexiblitly for them in the process. It will be up to landowners to negotiate lease terms that are specific to their properties and look out for their goals and uses for the property.
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Map of Potential Marcellus and Utica Shale
The above lease agreements came from the Associated Landowners of the Ohio Valley. The lease on the left contains all of the stipulations the landowners wanted. Unfortunately the oil company did not accept all of the them but this is a good starting point for landowners. The copy on the right contains explanations of specific articles in the lease.
This is a copy of the presentation Steve George made concerning lease agreements and drilling. He primarily focused on specific articles in a lease to be wary of and articles to make sure your lease contains.
5 Acre North-East Ohio drill pad. This site will be reclaimed to approximately 2-3 Acres permanent size.
10 Acre Pennsylvania drill pad showing semi-trailers holding water used in the hyrdaulic fracturing process.