Tuscarawas Valley (Eastern Ohio) mineral leasing now commands as much as $4,000 per acre in the hottest areas. That’s a pretty big bump compared to the $15 per acre being paid last year. This is one instance where you’re in a good position if your title was difficult to research and it took a year for the oil companies to get around to your lease.
There’s an old saying that there is strength in numbers, and landowners in the Tuscarawas Valley are finding the truth in that adage as they band together to negotiate the best possible deal with oil and gas companies hoping to lease their land.
Hopes are high for the development of oil and gas reserves in the Marcellus and Utica shale formations which underlie much of east central Ohio.
Earlier this month in a conference call with analysts, Aubrey McClendon, CEO of Oklahoma City-based Chesapeake Energy, said the Utica Shale should be worth $15 billion to $20 billion to the company’s shareholders. Chesapeake, which recently opened an office in Canton, already has acquired drilling rights to 1.25 million acres in Ohio.
Meanwhile, the amount of bonus money drillers are paying per acre to property owners has risen steadily — from as low as $15 per acre last year to as much as $3,800 acre now — thanks in part to the activities of landowner groups.
Read full news release at timesreporter.com