Eric Johnson

Written by
about Leases
on January 4, 2012

Notes from the Utica – January 2012

In the last six months we have seen a lot of changes in the oil and gas leasing game. More wells have been drilled and more data about the Utica Shale is now available. This has created a lot of buzz in the oil and gas world. There has been a real surge in interest by many oil and gas companies. There are new “hot” counties where lease prices have escalated substantially, while other counties are of less interest to the oil and gas companies. More companies are moving into this play every week. Major companies now include: Chesapeake, Devon, Hillcorp, Shell, Anadarko, Hess, Gulfport, Consol, and XTO (Exxon).

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Written by
about Leases + Ownership and Transfers
on January 2, 2012

Group Leasing or Group Mineral Selling

We are often asked whether a landowner should join a “group.” The short answer is “it depends.” Certain landowners will benefit from joining a group while others will do better standing alone.

Factors we consider include:

  • How many acres do you own?
  • Are you willing to sign a lease that allows the company to drill on your property?
  • Are your neighbors leased?
  • If your neighbors are leased, did they sign with the same company that has approached you or a different company?
  • Is the group made up of large landowners or small landowners?
  • Is the group centered around your property or spread out?
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Written by
about Drilling and Producing + Leases
on June 22, 2011

Notes from the Utica – July 2011

Oil and gas leasing in Ohio has continued at a rapid pace. Columbiana County, Jefferson County, Mahoning County, Caroll County, Stark County and Harrison County continue to generate signing bonuses in the $2,000/acre and up range, with prices in Harrison County (where a rumored huge well has been drilled) reportedly hitting over $3,000 per acre. Outside of that core area, in Trumbull County, Portage County, Summit County, and Tuscarawas County, activity is pretty brisk, but at lesser per acre amounts. Going beyond those counties, we are seeing new entrants, besides Chesapeake Energy, into the Utica shale play who are leasing in Medina County, Ashland County, Wayne County, Holmes County, Coshocton County, Belmont County and other areas.

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Written by
about Leases + Ownership and Transfers
on

Selling your Minerals

What Companies Are Buying Minerals?

There seem to be several companies now in Ohio that are attempting to buy mineral rights.  Of course more mineral buying companies will spring up from time to time.

What are they after?

These companies want to purchase your oil and gas mineral rights.

How are mineral rights different than oil and gas leases?

When you sign an oil and gas lease, you give a company the right to drill for oil and gas within a fixed period of time (say 5 years). If no well is drilled within that time frame, the lease will expire.…

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Written by
about Drilling and Producing + Leases + Ownership and Transfers + Royalties
on

Gas and Oil Leasing FAQ

Frequently Asked Questions About Oil and Gas Leasing and Drilling

Q. How long does an oil and gas lease last?

A. Usually, a long time. Most leases have two terms that affect their duration. The primary term is a fixed period of time (e.g. five years) during which the lessee has to achieve a certain result. If that result is achieved, then the secondary term kicks in, which is of indefinite duration. Most often, a lease will specify that a well must be drilled within the primary term and that once this happens the secondary term commences and continues for so long as there is production from the well.

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Written by
about Drilling and Producing + Leases + Ownership and Transfers + Royalties
on January 4, 2011

Oil and Gas Law 101

The first commercial well drilled for oil was the “Drake” well, which was drilled in 1859 in eastern Pennsylvania,. Many years and many wells have passed since that time and, as would be expected, many disputes have arisen concerning the leasing, drilling and operation of oil and gas wells in the United States.

Since I began practicing law in 1983, I have been involved in all manner of such disputes – some of which ended up in court. Some involved claims between landowners (Lessors) and the company who took an oil and gas lease (Lessees). Some involved claims between co-owners of a lease rights.…

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Written by
about Drilling and Producing + Leases
on November 8, 2010

Notes from the Utica – November 2010

During the summer of 2010, the oil and gas leasing situation in Ohio changed markedly. Prior to this point in time, oil and gas leasing and drilling in Ohio was conducted primarily by smaller, local companies. In 2010, an influx of larger companies changed the oil and gas landscape in Ohio. The primary company behind this move was Chesapeake Energy — a huge oil and gas producer based out of Oklahoma. Another large company, East Resources (recently purchased by Shell Petroleum) has also made a move into Ohio. Other out of state companies of varying size have also begun leasing — seemingly following at Chesapeake’s heels.…

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