More Ohio Landowners Are Falling Victim to Forced Pooling Orders

By -
From the Akron Beacon Journal:
Steve Neeley did not want to get involved in Utica shale drilling.
He had invested heavily in building a country estate on 9½ acres off Pontius Road in the southwest corner of Portage County. He was concerned about hydraulic fracturing, or fracking, and wanted nothing to do with it.
The 57-year-old Neeley was repeatedly approached by Chesapeake Exploration LLC, part of Chesapeake Energy Corp., to lease his land. The company offered a signing bonus of $1,200 per acre plus 12½ percent royalty of natural gas and liquids from the well. He repeatedly refused.
Then, in late 2011, Neeley and 23 neighbors who also had rejected the company’s lease offers were forced to take part in Utica shale drilling under a little-known and seldom-used provision of Ohio law called "unitization."
With approval from the Ohio Department of Natural Resources, Chesapeake was allowed to include 24 unwilling landowners in the large drilling unit - an area of land under which the company can extract resources - even though the owners had not signed leases granting rights to the minerals below.
By establishing what is called a unit operation, Chesapeake was allowed to drill horizontally through the shale thousands of feet beneath their properties and maximize profits from natural gas and liquids. The unwilling participants receive payments after wells go into production, but the rate is not negotiated in the way it is with others.
The Suffield unitization case was the first to be sought and approved in Ohio in recent decades, but more are being filed as drilling intensifies.
To date, 22 unitization requests have been filed in Ohio, of which six were approved, six were resolved or dropped and 10 are pending.
The requests would create units totaling nearly 15,000 acres in Portage and Stark counties in the Akron-Canton area, and Carroll, Belmont, Harrison, Columbiana, Trumbull and Jefferson counties, which stretch from Warren to the Ohio River and Interstate 70.
Chesapeake has filed 14 requests; Gulfport Energy Corp., three; Halcon Energy Corp., two; BP America Production, two; and Atlas Noble LLC, one.
You can read much more in the rest of the article by clicking here. 

Connect with us on Facebook and Twitter!

Popular posts from this blog

Fracktivist in Dimock Releases Carefully Edited Video, Refuses to Release the Rest

By -
Image
From Energy in Depth: There is something very strange going on along Carter Road, in Dimock, Pennsylvania, and I’m not speaking of natural gas, methane migration, contamination, litigation or even the extensive water testing there by the EPA and others.  No, I’m talking about a new “Watergate” conspiracy, complete with 18 minutes of missing tape (well, video, actually). It seems the ever-present Green Party member and  naturist   Vera Scroggins  (a/k/a  Vera Duerga ) has posted a video of Craig Sautner meeting with the EPA.  Mysteriously, the video is but 14 seconds in length, cutting off conversation in what is obviously mid-stream.  It raises a question Craig Sautner, like  Ronald Reagan in Kings Row , might have asked, “Where’s the rest of me?’  Carter Road, isn’t Kings Row, of course, (at least not until you arrive at  the mansion Scott Ely, one of the Dimock litigants, is building with his royalty money ), but there appears to be a whole lot of film editing going on there to fi
Read more

The Second Largest Oil and Gas Merger - Cabot and Cimarex

By -
Image
       Due to investor pressure, the U.S shale drillers are being pushed to improve financial and operational performance after a few years of poor returns. Even though the industry has improved its numbers, when compared to last year, investors still want more to be done for them to earn more money.      That's why two mid-tier shale drillers, Cabot and Climarex, have decided to merge in order to eliminate $100 million in annual costs, which means more money for the investors. This all-stock transaction is valued at about $7.4 billion, which is relatively high for the oil and gas sector.      The new entity will be renamed and the headquarters located in Houston, Texas. Cabot shareholders will own 49.5 percent of the new entity, and Climarex the rest.       The Cimarex-Cabot merger will address the investor's demand for a higher amount of returning cash. The initial plan is to pay a 50-cent-per-share special dividend on closing the deal while offering a quarterly variable div
Read more

Is a Strong Oil Demand Expected This Year?

By -
Image
  According to the world's largest oil traders, global oil demand is set for a rebound. Between now and the end of 2022, global consumption is expected to increase by up to 8 million barrels each day. Vitol Group, the world's largest oil trader, supports this statement.  In an interview with Bloomberg, Vitol's chief executive Russell Hardy said, "We'll need all eight cylinders to get through 2022". This, of course, is due to the lower than average demand for oil at the moment. Reopening economies and Asian markets will create a strong demand rebound by the end of this year and in 2022.  Although the demand for jet fuel will slowly increase, it will still be below average at the end of the year. Nevertheless, a surge in petrochemicals will offset the expected delay in jet fuel demand. Last year, the oil surplus reached a record of 1 billion barrels. This excess is already more than halfway drained, and experts believe it will be depleted by the third quarter th
Read more