Mahoning County gains rights to Utica Shale deposits
Tuesday, July 9, 2019
Under a new lease agreement with Ohio Valley Energy, Mahoning County will now have rights to any Utica Shale deposits underneath county-owned land in Canfield, according to The Youngstown Vindicator.
The original lease agreement for the county land, signed in 1984, will expire this month. The new agreement with Ohio Valley Energy extends the lease another 15 years and offers the county rights to any minerals below and a 15% royalty payment from each sale of oil and gas the company produces there.
The 270 acres of county-owned land includes five shallow Clinton sandstone wells along Columbiana-Canfield Road, just west of the Canfield Fairgrounds. The land is also leased by Mill Creek MetroParks for the Mahoning County Experimental Farm.
Learn more: The Youngstown Vindicator > Mahoning County has rights to shale deposits
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Shale FAQ
How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.