Midstream companies faring better than upstream in Ohio
Saturday, July 25, 2015
Since the shale oil and gas boom hit Ohio several years ago, other businesses like car dealers and hotels have benefitted. Now that oil prices have been on a downhill slide for nearly a year, some companies operating in Ohio are beginning to worry, according to Columbus CEO.
In particular, companies who explore, drill and produce oil and gas are in the tightest spot. The number of active drilling rigs decreased by 15 from May 2014 to May 2015.
Midstream companies, which includes pipelines and processing facilities, aren’t feeling the hit as much as the exploration and production sector. However, drilling permits are still regularly being issued by the Ohio Department of Natural Resources.
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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.