Mineral rights/ Gas driliing

wifemommy · #1 07/30/11, 11:35 AM

We were approached last week about signing non drilling oil and gas lease because they want to drill on the property behind us. That land owner lives 50 miles away and just sees dollar signs.

I need to know what questions to ask and where to look for true answers. We live in NE Ohio and are dependent on the well water. We have a little over 13 acres but they need ours to make a big enough area. It's MFC Drilling if that means anything to anyone. Thanks Annie

nebula5 · #2 07/30/11, 01:05 PM

Is this the marcellus shale?
And are you referring to a non-surface lease ( drillers are not allowed on the surface of your property?)

In our area (Southern Tier NY) this has been a very hot topic-- many landowners for and against. Study up on how Pennsylvania has fared with gas drilling. My biggest concern is the amount of water needed for the fracking process, and also the disposal of this water/sand/chemical waste.
I would not want to see it get into our watershed. Others are concerned about the impact of heavy trucks on their roadways. Educate your self on the fracking process, if this is what the will be using.
If they can not drill unless you sign, take the time to do some research. Your county may have a landowners group which negotiates pricing- to make sure you're not being taken advantage of. Sometimes attorneys work with groups to make sure landowners know what they're agreeing to.

Here's one blog you might want to look at:

http://shaleblog.com/category/marcellus-shale/

There's an entry in June about Ohio.

Also from Cornell University:

http://cce.cornell.edu/EnergyClimate...s/default.aspx

wifemommy · #3 07/31/11, 12:39 AM

Yes it is a non surface lease I wonder about the pricing the land owner will make a ton but we have a lot more to lose and our offer is a joke. Thank yopu for the links I have lots of reading to do. Annie

stormrider27 · #4 07/31/11, 12:51 PM

It would depend on what they are offering $$ wise. If you need the money take it otherwise I would say no. There is no upside for you other than the money and there is a lot of downside.

Storm