Encino Energy offered ‘potential’ $2B to frack Salt Fork State Park
Wednesday, April 12, 2023
Encino Energy offered Ohio a signing bonus and royalties that it estimated could total nearly $2 billion over 15 years to frack Salt Fork State Park, according to cleveland.com.
Encino’s offer included a $115 million signing bonus for leasing rights to drill in Ohio’s largest state park, located in southeast Ohio, and 20% royalty payment for oil and gas sales of minerals found under the park. Supporting documents the company provided to the state claimed the combination would amount to “potential” payments of up to $1.8 billion through 2041.
The proposal was ultimately rejected.
Learn more: cleveland.com > Texas driller offers Ohio ‘potential’ of $2 billion to frack Salt Fork State Park
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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.