Ohio River drilling next in the shale spotlight
Wednesday, October 1, 2014
According to West Virginia MetroNews, drilling could take place under the Ohio River.
The West Virginia Department of Commerce opened bids for natural gas drilling Sept. 26. The drilling will occur about one mile under the river, despite concerns that it will affect drinking water.
State parks that are struggling financially will benefit from the drilling, and the state will receive bonuses per acre as well as royalties.
From West Virginia MetroNews:
“The royalties for the state in each bid are between 18 and 20 percent and the upfront per acre bonuses range from $211 per acre to $8,425 per acre. The leases range from 3-5 years.”
Via: West Virginia MetroNews > State parks could profit from under river drilling
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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.