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Wednesday, July 22, 2015

Muskingum Watershed Conservancy District Sees Oil and Gas Royalties Reduced Drastically

From the Akron Beacon Journal:
The Muskingum Watershed Conservancy District intended to spend hundreds of millions of dollars maintaining and improving its recreational facilities in coming years. 
Money from Utica Shale lease bonuses and drilling royalties would pay those bills. 
But making changes at Atwood, Charles Mill, Pleasant Hill, Seneca and Tappan recreational parks and Piedmont and Seneca marinas plus adding a new trail network probably is going to take longer than originally planned. 
That’s because the district’s royalty payments from the three drillers tapping the land are shrinking in a big way, as Ohio’s Utica Shale quietly loses a bit of its financial luster. 
Monthly royalty payments to the watershed district from its 13 initial Utica Shale wells topped $1 million in December. They fell under $275,000 in May. 
That is a 73.3 percent drop over six months.
The article goes on to look at how the experience of the MWCD is a microcosm of what Ohioans in general are seeing of late, as royalties lag behind expectations with commodity prices staying low.  Click here to read the rest of that article.

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