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Monday, September 30, 2013

Carroll County Not Selling Percentage of Royalties Yet; Will Take Bids

From the Carrollton Free Press Standard:
A quarter interest of Carrollton Village’s 20 percent of future gas and oil royalties is up for grabs. 
At the Monday village council meeting, Mayor Frank Leghart said he wanted to clear things up regarding the offer from Gateway Royalty to purchase a quarter interest of the village’s future gas and oil royalties.  
Council agreed at the Aug. 26 meeting to sell the royalty percentage for $555,000 to Gateway Royalty, Inc.  Village Solicitor Clark Battista was to work on the verbal details. 
However, with a motion approved but no contract signed, Leghart said Monday, Battista advised him it would be in the best interest for the village to advertise for bids. According to the Ohio Revised Code, selling future royalties is a gray area.  The sale of specific assets, such as the mineral rights, is required by law to be put up for bid.  However royalties are considered revenue and the statute is not clear on the sale.  Village officials feel it is “safer” to place the percentage of future royalties up for bid to avoid the possibility of questions regarding the sale in the future.
Read the whole article here. 

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