I am looking at a lease offer in Guernsey county. Does anyone have recent experience with the going offers in this area? It is also a 5 year + 5year option. I am used to OK and TX and those are long terms in my experience. But I am much less familiar with OH. Anyone have experience they wish to share?
I dont like 5 years. I dont think it’s in the mineral owners favor. All oil & gas leases are negotiable. Good luck!
Five year primary is red flag one. Five year extension is red flag two. Way too long. The National Association of Royalty Owners has an Ohio Chapter. You might want to join and get involved with finding out what is going on in the area.
5/5 is pretty much the standard here in Ohio. What company are you dealing with, and what general area of Guernsey?
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5 year primary term is pretty normal in Guernsey
I live in Guernsey county. I have acreage leased, some for 8 years. 18%( and some higher) royalties, 5 year is the standard here. My farmer friend did lease for 21% royalties. 3,500$ an acre lease is standard now, also. Se Ohio is very hot right now, Im sure you know.
If five is standard, then it is what it is. I would not agree for a five year option though. Get a good attorney to review the lease for more friendly mineral owner clauses.
The offer is from OGM Partners LLC. Anyone know of them? Their website is pretty sparse.
Thank you all. This is helpful. I am more familiar with OK and TX and was shocked by the five and five also. It is interesting that that is the norm. I will post the location shortly. If anyone knows that area, I’d be grateful for any info. The offer was $4,000 nma at 17.5% royalty. I know there are a few wells (horizontal I believe) very nearby. Again, thank you for your input!
The description is, Section2, Township 9, Range 10. I appreciate any information anyone has on this specific area.
What is the name of the township within Guernsey? Spencer? Jackson Valley?
I don’t have that information. Is there a website that would help be figure that out? I have the street address.
I used the Ohio oil and gas website. I zoomed in until I could get to Guernsey County and what I thought was the area. Looks like it was right on the edge of Spencer township and Jackson valley. Might have two horizontals already there? Their maps do not have the section numbers on them or I am not finding them. If someone lives close by, check if I am on the right township.
I would suggest getting an attorney to review the lease terms. Most drafts are not in the mineral owner’s favor.
Most o&g leases are for the companies. All leases and the terms are negotiable. You might need lawyer or representative to negotiate favorable terms for you & your family. I do not like 5 years even though it’s standard for your area.
As suggested by M. Barnes, a great attorney for oil and gas is Conway, in Cambridge, Ohio. This Spencer/Jackson area is where I live. Wells are popping up here, everywhere. The 2 mentioned are horizontal.
Hold out for 5k, w 18% royalties.
Im checking my range, section and township specifics. I will get back to you.