You may have heard about the upcoming gas and oil boom in Northeastern Ohio? There is certainly a lot of information going around. Perhaps you’ve been approached by a “leasing specialist” who wants you to sign a gas and oil lease with them? What does all this mean for you?
If you have land that’s currently lease free in Ashtabulaand surrounding counties, then it could mean future revenues from gas/oil royalties. But how do you know which leasing company is right for you? Should you lease directly with the oil companies?
First of all don’t jump at the first lease that comes along. Do you homework. These documents can be complicated. Ask lots of questions. If there are informational seminars available in your community plan to attend. There is so much more to consider than just the price per acre the lease will offer you.
Don’t lock yourself into a lease immediately. Remember, a mineral lease is a legally binding document. Think things through, attend seminars, and become educated.
When you’re considering a company to lease your minerals, your ground water must be taken into consideration. Is there a clause on your lease granting the oil company unrestricted use of your fresh water? It can take 5 million gallons of water for hydraulic fracturing! Where will all that water come from?
What about your water quality? Who will protect it? How will they protect it? If your water is altered, or contaminated, what happens then? Will the oil company pay to make the water good again? Who will sample the water to make sure?
You NEED to know the answers to these and other questions! Without good, clean water, your property is worthless!
The upcoming gas and oil leasing is not all gloom and doom. There is a landowner association working in the area who addresses not only these concerns, but many more not listed here. You need the information they have before making a decision to sign a lease with ANYONE.