Southeastern Ohio Landowners Association
Protecting Landowners Interests
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April 2, 2014- Oil- and gas-related investment in Ohio nears $19B (by Tom Knox)

 

Ohio has seen $6 billion in new oil-and-gas related activity since last fall, according to law firm Bricker & Eckler LLP.

The energy group’s fall 2013 report totaled $12.9 billion in projects. Bricker & Eckler’s newest  report tallies $18.8 billion in investments, ranging from Columbus companies expanding product lines to take advantage of recent drilling in the state’s Utica shale play to direct investments in eastern Ohio like new hotels. 

One of the biggest new investments is a $500-million proposed natural gas-fired power plant in Butler County that should begin operating in 2018. That plant was announced in January.

Not all of the activity on the report is directly tied to Ohio’s Utica shale activity, but it provides a comprehensive view of the industry, including new plants, educational programs and proposed pipelines.

Projects have jumped to 106 from 84 since the fall report.

“The biggest thing is infrastructure,” said Matt Warnock, an attorney in the firm’s energy and public utilities group in Columbus. “Everyone keeps talking about how that’s what we need, and now you’re starting to see it. More and more pipeline projects, process facility projects. We’re starting to see larger natural gas-fired power plant projects.”

Natural-gas plant expansion is buoyed by current low prices for the fossil fuel and the mandated closure of some coal-powered plants because of federal regulations.

The firm gathered its data mostly from news reports, so the figures could be higher. And, not every project’s value could be accounted for.

“Frankly the numbers are staggering to me,” Warnock said. “Most of the names on this list are not names of companies that people are familiar with or have ever been in Ohio before. So it’s a tremendous growth of existing companies and new companies moving to Ohio.”

The article can be found here. 

March 24, 2014 – Southeastern Ohio Landowners Association Announces 13th lease signing

 

SEOLA is pleased to announce that it held a lease signing with an unidentified energy company, to lease all of the Association’s acreage in the townships of Adams, Salem, Waterford and Watertown townships in Washington County, Ohio, covering approximately 6,000 acres.  The 5 year lease agreement includes a per acre upfront bonus payment, and a market enhanced royalty, depending on the township.  There is also a one well drilling commitment on certain of the acreage within the first 3 years of the lease, which if not met, may result in an additional per acre bonus payment.  The lessee has an option to extend the lease for an additional 5 years by making a bonus payment of 100 percent of the original up front bonus payment.

 

SEOLA obtained strong landowner protections in this lease, including, among others, no water usage, water testing, an environmental and general indemnity, insurance requirements, timber and surface use protections and other important landowner protection provisions.  Under the terms of the lease negotiated by SEOLA, landowners will retain their shallow oil and gas mineral rights.  The lease also contains a horizontal Pugh clause, which means that whatever leased acreage is not included in a producing drilling unit at the end of the primary term will be released back to the landowner.

 

Nearly all of SEOLA’s eligible members participated in the lease signing.

 

January 24, 2014 -This Utica shale thing is really heading south (By Dan Shingler) 

Go south, oil and gas man.

 

Because that’s where the Utica is continuing to produce some pleasantly surprising results for drillers lucky enough to have acreage to drill in places such as Ohio’s Washington County, says Bob Chase, professor and head of the Petroleum Engineering Department at Marietta College.

Chase said the results he has seen from the Utica so far are promising, and he remains confident the play will live up to expectations in terms of the natural gas and related liquids its wells will produce in the coming year.

“It’s still looking very solid,” he said, referring to quarterly well results released by the Ohio Department of Natural Resources at the end of 2013.

But the best results increasingly are coming from the play’s southern area, Chase said, which has been a bit of a surprise.

“The results from down in this area — Belmont, Monroe, Noble, Gurnesey and even Washington County — are all looking good,” he said. “They’re stronger than even in Carroll County, I think.”

If that’s a surprise, it’s probably because Carroll County and its seat, Carrollton, largely have been the epicenter of activity for the Utica so far. That’s largely the result of big drillers such as Chesapeake Energy staking their claim in that area with massive amounts of leased mineral rights. At the end of last year, Carroll County was home to 138 of the 245 shale wells in the state that were drilled and are producing gas.

“The trend is more southern than a lot of folks thought it would be,” Chase said.

Energy companies have been following the play south, too, he said, noting that Tulsa-based Protégé Energy and Aubrey McClelland’s new American Energy Partners Utica both have been leasing acreage in places such as Washington County.

There’s some irony in that last point, because Mr. McClelland was forced out as the CEO of the Utica’s biggest leaseholder, Chesapeake Energy, last April. Now his new venture appears to be pursuing even better-producing acreage than what Chesapeake leased to the north with him at the helm, Chase said.

Others agree. Bernstein Research of New York noted in its Jan. 14 report on the Utica that Chesapeake’s wells are not producing the same volumes of gas and other hydrocarbons as those of competitors, such as Gulfport Energy and Antero Resources, which are largely to the south of Chesapeake’s holdings.

“We believe this gap in performance is a function of where in the play operators are drilling (as opposed to completion technology),” Bernstein wrote in its report.

And researchers at Cleveland State’s Maxine Levine College of Urban Affairs also noted the southern trend when it looked at the Utica’s impact on Ohio’s economy earlier this month. However, that might be only expanding the geographic footprint of the Utica’s activity to more areas. The report notes that the number of Ohio counties considered “active” for shale drilling rose from eight to 14 in 2013, as more southern counties saw activity.

One reason that the southern part of the Utica is better is because the shale is deeper beneath the surface, Chase said. That means there is more rock bearing down on the shale, which increases the pressure in the rock and forces up more gas and other resources when a well is drilled and fractured.

But the southern wells aren’t just winning in terms of sheer volume. They also are producing a more profitable mix of resources and appear to be especially rich in the natural gas liquids that drillers tend to seek when gas prices are low, as they have been in recent years.

“It’s a combination of both,” Chase said. “The volumes are very good and we’ve seen a lot more wet gas and liquid than what maybe people were expecting in the southern counties.”

It’s still early in the drilling process, but now that Ohio is reporting well results on a quarterly basis, rather than once a year, Chase said well results are becoming both more available and more meaningful. The production numbers disclosed to the state tend to be more accurate than the results some companies self-report for their best new wells, Chase said.

Chase, who continues to follow the play both as an academic and as a resident of the Utica region with mineral rights in play, will be in Northeast Ohio Feb. 20. He’ll be giving a further update on the Utica’s progress at Crain’s Shale Summit 2014 at Landerhaven in Mayfield Heights.

The article can be found here.

 

October 2, 2013- Drill Bits: Gas and oil industry updates for Guernsey, Noble, Muskingum, Belmont and Tuscarawas counties - Daily Jeffersonian | Cambridge OH | Daily-Jeff.com

 

An article published on The Daily Jeffersonian website this week provides oil and gas industry updates for Belmont, Guernsey, Muskingum, Noble and Tuscarawas counties. Topics covered include federal regulatory developments, regional shale well drilling activities and permit updates from the ODNR, as well as state legislative developments and upcoming programs, traning, conferences and exhibitions. For more, read the full story here.

 

September 24, 2013 – Southeastern Ohio Landowners Association completes 7th, 8th, 9th, 10th, 11th and 12th lease signing deals in late 2012 and 2013.

 

The Southeastern Ohio Landowners Association is pleased to announce that it negotiated and completed 6 lease signing deals in late 2012 and 2013 with 4 different energy companies as follows.

 

Unidentified company – SEOLA Washington County members in 15 townships in the county leased about 15,000 acres to an energy company in October, 2012.  A second lease signing was held with the company in March, 2013 for SEOLA members in eastern Washington County and central Monroe County covering 10,000 acres. Different amounts per acre and royalty percentages were obtained, depending upon township, for a primary term of 5 years.

 

SEOLA obtained strong landowner protections in this lease, including among others, environmental and general indemnity, insurance requirements, and tax protections.  Under the terms of the lease negotiated by SEOLA, landowners will retain their shallow oil and gas mineral rights.  The lease also contains both vertical and horizontal Pugh clauses, which means that whatever leased acreage and geological horizons not included in a producing drilling unit will be released back to the landowner.  Nearly all of SEOLA’s eligible members in the townships signed the lease.

 

Unidentified company – In March, 2013, SEOLA members in 7 townships in Washington County leased about 3000 acres to an energy company.  The lease terms provided for a per acre upfront bonus and market enhanced royalty provision. In September 2013, SEOLA members leased an additional approximately 2000 acres to that energy company in 5 townships in eastern Washington County.  The upfront bonus for this lease deal was market rate per acre with a market enhanced royalty provision.

 

SEOLA obtained strong landowner protections in these leases, including among others, environmental and general indemnity, insurance requirements, and tax protections.  Under the terms of the lease negotiated by SEOLA, landowners will retain their shallow oil and gas mineral rights.  The lease also contains both vertical and horizontal Pugh clauses, which means that whatever leased acreage and geological horizons not included in a producing drilling unit will be released back to the landowner.  Nearly all of SEOLA’s eligible members in the townships signed the lease.

Consol Energy (CNX Gas) – SEOLA members signed leases with CNX in April, 2013, covering acreage in Jackson Township, Noble County and Switzerland and Salem Townships, Monroe County, at $5500 per acre and a 20 percent market enhanced royalty.

 

SEOLA obtained strong landowner protections in this lease, including among others, environmental and general indemnity, insurance requirements, and tax protections.  Under the terms of the lease negotiated by SEOLA, landowners will retain their shallow oil and gas mineral rights.  The lease also contains both vertical and horizontal Pugh clauses, which means that whatever leased acreage and geological horizons not included in a producing drilling unit will be released back to the landowner.  All of SEOLA’s eligible members in the townships signed the lease.

 

Eclipse Resources I, L.P. - SEOLA members in Adams and Green Townships, Monroe County, leased acreage to Eclipse Resources at $4000 per acre and a 20% market enhanced royalty in July 2013.

 

SEOLA obtained strong landowner protections in this lease, including among others, environmental and general indemnity, insurance requirements, and tax protections.  Under the terms of the lease negotiated by SEOLA, landowners will retain their shallow oil and gas mineral rights.  The lease also contains both vertical and horizontal Pugh clauses, which means that whatever leased acreage and geological horizons not included in a producing drilling unit will be released back to the landowner.  All of SEOLA’s eligible members in the townships signed the lease.

 

October, 2012 - Southeastern Ohio Landowners Association (SEOLA) completed Fourth, Fifth and Sixth Deals for Its Landowners  in the Summer of 2012  

 

The Southeastern Ohio Landowners Association (“SEOLA”) is pleased to announce that it negotiated and completed lease signings for three (3) favorable oil and gas leases agreements this past summer.   

 

CONSOL ENERGY(CNX Gas) - SEOLA Noble County members in Olive and northern Enoch Townships  signed “non-surface disturbance” leases with CNX Gas LLC, An affiliate of Consol Energy, in July, 2012.  These SEOLA landowners had property that was located next to property owner in fee by Consol. SEOLA was pleased to negotiate a no surface use lease for the entire group.  This means these SEOLA members will not have the pad, pits, injection wells or compressors on their property because the use will be beneath the surface.  The 5-year lease agreement was executed in July, and included a $4000 per-acre bonus payment and a 19 percent market enhanced royalty.  SEOLA landowners are hopeful development will begin as early as 2013.  

 

SEOLA obtained strong landowner protections in this lease, including among others, environmental and general indemnity, insurance requirements, and tax protections. Under the terms of the lease negotiated by SEOLA, landowners will retain their shallow oil and gas mineral rights. The lease also contains both vertical and horizontal Pugh clauses, which means that whatever leased acreage and geological horizons not included in a producing drilling unit will be released back to the landowner.  Nearly all of SEOLA’s eligible members in the townships signed the lease.  

 

ANTERO RESOURCES - On August 4, 2012, the Southeastern Ohio Landowners Association (“SEOLA”) held a lease signing with Antero Resources on SEOLA acreage in Millwood and Richland Townships in Guernsey County; Franklin, Malaga, Summit and Seneca townships In Monroe County, and Buffalo, Enoch, Olive, Stock, Elk and Jefferson townships in Noble County.   

 

SEOLA members leased over 7000 acres to Denver based Antero Resources.  The 5-year lease agreement includes $4000 - $5500 per-acre bonus payment, depending on the township and a 20 percent market enhanced royalty.  Antero has an option to extend the lease for an additional five years by making a bonus payment of 115 percent of the original upfront bonus amount.  

 

Again, SEOLA obtained strong landowner protections in this lease, including, among others, no water usage, water testing, an environmental and general indemnity, insurance requirements, timber and surface use protections and other important landowner protection provisions. Under the terms of the lease negotiated by SEOLA, landowners will retain their shallow oil and gas mineral rights. The lease also contains both vertical and horizontal Pugh clauses, which means that whatever leased acreage and geological horizons not included in a producing drilling unit at the end of the primary term will be released back to the landowner.  

 

Nearly all of SEOLA’s eligible members participated in the lease signing.  

 

ANTERO RESOURCES - On August 25, 2012, the Southeastern Ohio Landowners Association offered a lease option opportunity with Antero Resources for new SEOLA members with oil and gas minerals in Stock, Enoch, Olive and Jefferson Townships, Noble County.  SEOLA has required in its lease deals that when its members sign a lease, both the lessor and lessee are obligated under the lease as long as a title search confirms the lessor had the ability to lease his or her oil and gas mineral rights.  Since Antero had previously leased all of SEOLA property in these townships, we negotiated an Option Lease with Antero for any new walk- in SEOLA members.  Specifically, this option gave Antero Resources 30 days to decide whether to sign the lease.  In return Antero Resources paid the landowner $10 an acre.  SEOLA held the leases in escrow during this 30 day review period.  At the end of the 30 days, Antero exercised its option to lease approximately 90% of these SEOLA member leases.  The 5-year lease agreement includes $5000 per-acre bonus payment and a 20 percent market enhanced royalty and substantially the same environmental and landowner protection provisions as are in SEOLA’s other leases. SEOLA was able to help Noble County landowners obtain favorable leases under these circumstances.

 

June 4, 2012 - The New York Times reports on the energy boom sweeping the Ohio River Valley with specific mention of SEOLA, it members and quotes from Jennifer Garrison and Dr. Robert Chase.  Read the complete article here.

 

 

March 26, 2012 - Southeastern Ohio Landowners Association Announces Third Deal for Its Southern Monroe County Landowners

 

The Southeastern Ohio Landowners Association (“SEOLA”) is please to announce that it negotiated a very favorable agreement for its southern Monroe County members with Eclipse Resources I, L.P.  SEOLA has now closed three deals in as many months, the first in Guernsey County, the second in Noble County and now in Monroe County.

 

Over 200 landowners signed leases with Eclipse on March 17, 2012 in Sardis, Ohio for acreage located in Lee, Jackson, Perry, Green, Ohio, Benton, Bethel, Washington and Salem Townships of Monroe County.  The 5-year lease agreement includes $4250 per-acre bonus payment and a 20 percent market enhanced royalty, plus a drilling commitment during the first three (3) years of the primary term.  If Eclipse does not drill within three years, Eclipse must make an additional bonus payment of $1000 per acre to the landowner to keep the lease in effect.   SEOLA believes that the drilling commitment should help to encourage drilling for the landowners in southern Monroe County.  Eclipse has an option to extend the lease for an additional five years by making a bonus payment of 115 percent of the original upfront bonus amount.

 

SEOLA obtained strong landowner protections in this lease, including water testing, an environmental and general indemnity, insurance requirements, timber and surface use protections and other important landowner protection provisions.  Under the terms of the lease negotiated by SEOLA, landowners will retain their shallow oil and gas mineral rights.  The lease also contains both vertical and horizontal Pugh clauses, which means that whatever leased acreage is not included in a producing drilling unit at the end of the primary term will be released back to the landowner.

 

Nearly all of SEOLA’s eligible southern Monroe County members have already signed the lease.  SEOLA will contact any remaining eligible members to schedule additional times to sign the lease.  Landowners with acreage in Lee and Jackson Townships of Monroe County who want to join SEOLA may still join and take advantage of the Eclipse deal.  Interested members in those townships should contact us immediately at http://seohiolandowners.org/contact_us.aspx or by calling us at 740-373-2414. 

 

SEOLA is currently accepting additional landowners with acreage in Monroe, Washington, Noble and Morgan counties.  Negotiations are ongoing for SEOLA’s remaining approximately 30,000 acres, and SEOLA expects to announce additional deals in the near future.

 

March 17, 2012 - The Cleveland Plain Dealer reports on the increasing demand in Ohio  for oil & gas attorneys and quotes Bricker & Eckler LLP attorney Glenn Krassen.  Read the complete article here.

 

March 17, 2012 - The Marietta Times reports issues that may arise with old leases for area landowners.  Quotes SEOLA attorney Jennifer Garrision and Bricker & Eckler LLP attorney Matt Warnock.  Read the complete article here.

 

February 14, 2012 - Southeastern Ohio Landowners Association Reaches Second Deal for Noble County Members With Eclipse Resources I, LP

 

The Southeastern Ohio Landowners Association (SEOLA) is pleased to announce that it has reached an agreement with Eclipse Resources I, LP to lease more than 4,000 of SEOLA’s acreage in northern Noble County, in Beaver, Brookfield, Buffalo, Center, Marion, Noble, Seneca, Stock and Wayne Townships.  A lease signing session was held in Caldwell on Saturday, February 4th.  This is SEOLA’s second deal it has reached for landowners in the past three months.  The first deal was for SEOLA members in Guernsey County and a part of Noble County with Carrizo (Utica) LLC, a subsidiary of Houston-based Carrizo Oil & Gas, Inc.

 

The lease agreement includes a net $4,000-per-acre bonus payment and a 19 percent royalty rate, plus a drilling commitment during the first three (3) years of the primary term.  If Eclipse does not drill under a lease within three years, Eclipse must make an additional bonus payment of $750 per acre to the landowner.   SEOLA believes that the drilling commitment should help to encourage drilling for the landowners in Noble County. 

 

The primary term of the lease agreement is for five years, with an option to extend the lease for an additional five years by making a bonus payment of 115 percent of the original amount. Under the terms of the lease negotiated by SEOLA, landowners will retain their shallow oil and gas mineral rights.  The lease also contains both vertical and horizontal Pugh clauses, which means that whatever leased acreage is not included in a producing drilling unit at the end of the primary term will be released back to the landowner. The lease has a number of other landowner protections in it that are important to SEOLA members, including water testing, an environmental indemnity, insurance and other important landowner protection provisions.  

 

SEOLA is pleased with the landowner protections it was able to negotiate into the lease, and nearly all of SEOLA’s Noble County members have signed the lease.  SEOLA looks forward to working with Eclipse as the leasing process moves forward and SEOLA will continue to be in contact with all affected landowners to advise you of the dates for final lease signups. If you have acreage in the Noble County townships referenced above and want to join SEOLA, or if you have any questions regarding the lease agreement, or SEOLA generally, please contact us at:  http://seohiolandowners.org/contact_us.aspx, or by calling us at 740-373-2414.

 

January 26, 2012 - The Akron Beacon Journal includes an editorial (Five Myths about 'Fracking') by Dr. Robert Chase.  Read the complete editorial here.

 

November 7, 2011 - Southeastern Ohio Landowners Association Reaches Lease Agreement with Houston-based Oil and Gas Developer

 

The Southeastern Ohio Landowners Association is pleased to announce that it has reached an agreement with Carrizo (Utica) LLC, a subsidiary of Houston-based Carrizo Oil & Gas, Inc., to lease all of the Association’s acreage in Guernsey County and in Beaver Township in Noble County.

 

The lease agreement includes a $5,000-per-acre bonus payment and a 20 percent gross-royalty rate. The primary term of the lease agreement is for five years, with an option to extend the lease for an additional five years by making a bonus payment of 115 percent of the original amount, or $5,750 per acre. Carizzo is paying the Association’s legal and consulting fees, so the landowner will receive a net amount of $5,000 per acre.  

 

Under the terms of the lease negotiated by the Association, landowners will retain all shallow oil and gas mineral rights. The lease also contains vertical and horizontal Pugh clauses, meaning that whatever leased acreage is not included in a producing drilling unit will be released back to the landowner. The lease has a number of other landowner protections in it that are important to Association members.

 

The Association is pleased with the landowner protections it was able to negotiate into the lease, and looks forward to working with Carrizo as the leasing process moves forward. The Association will continue to be in contact with all affected landowners to advise you of the date for lease signups and other information. If you have any questions regarding the lease agreement, please contact us at http://seohiolandowners.org/contact_us.aspx, or by calling 740-373-2414.

 

October 22, 2011 - The Cleveland Plain Dealer reports on drilling in rural Ohio and quotes Bricker & Eckler LLP attorney Glenn Krassen.  Read the complete article here. 

 

October 22, 2011 - The Marietta Times reports on lease options for area landowners and quotes Jennifer Garrision.  Read the complete article here.

 

September 13, 2011 - The Parkersburg News and Sentinel reports that former State Representative Jennifer Garrison is assisting local landowners with oil and gas leases.  Read the complete article here.

 

September 12, 2011 - The Marietta Times reports that former State Representative Jennifer Garrison recently opened a law firm in Marietta and formed the Southeastern Ohio Landowners Association to assist local landowners with oil and gas leases.  Read the complete article here.