“Ohio’s red hot shale market”

Shale leases and royalties are currently a big news item in Ohio. There is both good and bad news for Ohio concerning leases on shale fields. The good news is that Ohio landowners are receiving royalty checks that are approximately three times larger than landowners in Pennsylvania because Ohio properties have more gas deposits than those areas. When landowners sign a lease they get an upfront bonus in addition to yearly royalty fees that are based on the land’s productivity. Royalties in Ohio average around $15,000 per acre.

The bad news is that a number of Ohioans may not be receiving the amount due to them for their upfront bonuses. Thirty-three landowners in Columbiana County sued Chesapeake Energy Corp. in late February because they claim that their bonus checks were only one percent of what they should have been paid. In addition to this suit, ninety-five Ohio landowners are being sued by the Chesapeake Energy Corp. for trying to break their leases in order to sell to another bidder.

These are just some of the major news events related to shale leases. For more information read an article from Crain’s Cleveland Business titled “Landowners dig in, sue over shale leases.”

Photo by gthills