West Virginia DNR OK’s agreements with Statoil to drill under Ohio River
Thursday, March 26, 2015
The State Journal reports that Statoil USA Onshore Properties Inc. will be drilling under 474 acres of the Ohio River.
The West Virginia Department of Natural Resources finalized two leases with Statoil. The company will have drilling rights between mile markers 124-125 and between mile markers 125-127. Statoil will pay $8,125 per acre for mile markers 124 and 125, and $9,000 per acre for mile markers 125-127. Statoil will pay a 20 percent gross royalty for both tracts of property.
Gastar Exploration Inc. and Noble Energy both have placed separate bids on property under the Ohio River. West Virginia DNR is finalizing agreements with the two companies.
Via: The State Journal > West Virginia DNR finalizes agreements to drill under Ohio River
Related:
- 3,800 sign petition against fracking under the Ohio River Dec. 1, 2014
- Ohio River drilling next in the shale spotlight Oct. 1, 2014
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How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
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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.
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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.