Oil and gas

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

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 Ohio Landowner Toolkit or the Energy and Utility Issues Resource Guide.

Not a member? Join today!

Also, listen to Legal with Leah, a podcast featuring Ohio Farm Bureau Associate General Counsel Leah Curtis discussing topics impacting landowners.

 

My first recommendation in your journey is to start out with a local farming friend or mentor along with joining an organization like Ohio Farm Bureau.
Greg McGlinch's avatar
Greg McGlinch

Darke County Farm Bureau

New and beginning farmers
We’re just so thankful for the Farm Bureau and the foundation for helping put this together. And of course, the Boyert family for the vision they had with this grant. It’s jumping us forward 10 years. It’s unbelievable.
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Nathan and Jill Parriman

Clermont County Farm Bureau

Growing Tomorrow Grant
I could not have done it without the resources I have found through Farm Bureau.
Gretchan Francis's avatar
Gretchan Francis

Trumbull County Farm Bureau

Bringing the farm back to life
It wasn’t until I joined the Wilmington College Collegiate Farm Bureau that I truly saw how my passion could translate into leadership, advocacy and a career.
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Wyatt Morrow

Clinton County Farm Bureau

Youth pathways in Farm Bureau
The issue of property taxation remains as one of the biggest challenges our members face today. Ensuring agricultural property is valued for its agricultural potential and not development is critical to the continued success of Ohio agriculture.
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Matt Aultman

Darke County Farm Bureau

Giving farmers a voice
Through the Select Partner program, we became educated in farm insurance and weren't just selling policies. It became more and more clear why farmers need an advocate like Ohio Farm Bureau.
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Chad Ruhl

Farm manager, CSI Insurance

Select Partner Program
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.
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Mary Smallsreed

Trumbull County Farm Bureau

Advocacy
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