Ohio has become an epicenter for oil and gas leasing and drilling activity. Many landowners are faced with leases and legal documents for resources they may not have realized existed on their property.

Here are five tips to consider from Ohio Farm Bureau’s brochure, “A Landowner Guide to Oil and Gas Leasing.”

1. The best protection a landowner has is to establish a relationship with an attorney to review and negotiate any oil and gas leases.

2. Landowners should explore whether they own the mineral rights associated with their surface property, and if any old leases are in force on their property. In some cases, severed mineral rights can be rejoined with the surface property and old leases may have issues that can be renegotiated to the landowner’s advantage.

3. Some of the terms landowners may consider when negotiating an oil and gas lease are: free gas provisions, duration of lease, reimbursement for damages to property, bonus payments, delay rental and royalty payments. Creating provisions protecting soil and water resources, as well as giving the landowner input or approval of placement of additional infrastructure on their property should be considered, too.

4. Landowner or negotiation groups are becoming more common to allow for greater bargaining power. Landowners should enter into these groups with the same caution they would use when negotiating personally with an oil and gas company. Even if a landowner group is represented by an attorney, landowners should consider having individual legal counsel as well.

5. Ohio law requires minimum land area before an oil or gas well can be drilled. Oil and gas producers may pool properties into a drilling unit, which may affect royalty payments.

More Landowner Information

For further explanation of these tips and other information on other topics impacting landowners, Ohio Farm Bureau members can log in and download the Landowner Toolkit. Not a member? Join today!

Get the full list of landowner topics covered in the toolkit, with tips blogs for each in Ohio Farm Bureau’s Legal Information Series.

Also, listen to Legal with Leah, a podcast featuring Ohio Farm Bureau’s Director of Ag Law Leah Curtis discussing topics impacting landowners.

active-member-banner

Having opportunities to attend leadership institutes, advocate for rural Ohioans on the state and national level, facilitate young ag professionals events, and serve in a variety of leadership positions have helped my skills grow exponentially.
Sara Tallmadge's avatar
Sara Tallmadge

Ashland County Farm Bureau

Growing our Generation
Labor has always been an issue, mainly because we are a seasonal operation. So that's a challenge finding somebody who only wants to work three months out of a year, sometimes up to six months.
Mandy Way's avatar
Mandy Way

Way Farms

Business Solutions
If it wasn't for Farm Bureau, I personally, along with many others, would not have had the opportunity to meet with our representatives face to face in Washington.
Austin Heil's avatar
Austin Heil

Hardin County Farm Bureau

Washington, D.C. Leadership Experience
I was gifted the great opportunity through an Ohio Farm Bureau Foundation Youth Pathways grant to run a series of summer camps here. That really expanded my vision of what ‘grow, maintain, sustain and explain’ could actually be.
Jim Bruner's avatar
Jim Bruner

Mezzacello Urban Farms

Farming for Good
I see the value and need to be engaged in the community I live in, to be a part of the decision-making process and to volunteer with organizations that help make our community better.
Matt Aultman's avatar
Matt Aultman

Darke County Farm Bureau

Leadership development
So many of the issues that OFBF and its members are advocating for are important to all Ohioans. I look at OFBF as an agricultural watchdog advocating for farmers and rural communities across Ohio.
Mary Smallsreed's avatar
Mary Smallsreed

Trumbull County Farm Bureau

Advocacy
Suggested Tags: