1. Oil & Gas Leasing Issues
OFBF Self-Help Energy Programs
Oil & Gas Leasing Issues
Program is set up to advance on mouse click.
Transition: Dissolve from slide to slide

2. Energy Markets – Current Trends
Natural Gas
Crude Oil ? .
Electric Generation
No Silver Bullets…

3. Energy Trends and Their Impact
…A Lot of Silver Buckshot…
Electric System
Upgrades
Advanced
Metering
Infrastructure
(AMI)
Utility Rates
and Tariffs
Pipelines
and Storage
Fields

4. Energy Trends and Their Impact
…A Lot of Silver Buckshot
Energy Crops
Renewable
Generation
On-Site
25 x’25
Energy
Policy

5. Energy Trends and Their Impact
…A Lot of Silver Buckshot

6. Considerations Before Signing an Oil or Gas Lease - Implications
“Size Does Matter”

7. Considerations Before Signing an Oil or Gas Lease - Implications
“Size Does Matter”

8. Considerations Before Signing an Oil or Gas Lease - Implications
If you hear “Shale,” “Deep Wells,” “Marcellus,” “Utica,” “Devonian,” “Directional Drilling,” “Horizontal Drilling” or “Seismic Testing”
A lease is made between individual parties; Landowner and Developer will be partners.
The lease is long term, multi-generations.
Anything is negotiable; – make adjustments to fit the farm.

9. Considerations Before Signing an Oil or Gas Lease - References
Know the Leasing Agent…
Have the representative identify his exact relationship with an oil and gas exploration company…
“Working for” and “working with” mean different things.
The more generations removed, the more speculative the leasing activity.

10. Considerations Before Signing an Oil or Gas Lease - References
Know the Developer…
Call the references and ask:
Does producer respond to problems?
Rentals or royalties paid on time?
Consulted on all infrastructure placement?
Restoration done properly?
Are you having any problems now?

11. Considerations Before Signing an Oil or Gas Lease - References
Know Your Legal Counsel…
Ask legal counsel the following:
Years of experience working with complex energy contracts, leases and easements?
Familiarity with energy technology?
Experience negotiating individual and group agreements?
Access to financial and family counseling resources?

12. Considerations Before Signing an Oil or Gas Lease - References
Know the Landowner Association…
Ask representatives the following:
Legal Counsel – Who represents whom?
Governance policies and procedures?
Enrollment and exit provisions?
Group size & critical mass?
Crafting individual provisions?
References?

13. Provisions a Landowner Should Consider in a Lease
Take steps to clear your record - Ohio Dormant Minerals Act (ORC )
Free Gas Provisions and Shut-In Royalties
Oil & Gas Leases vs. Pipeline Easements
Payments for Damages
Establishing Baselines to Protect Soil & Water Quality
Well Decommissioning

14. OFBF Self-Help Energy Programs
Dale Arnold, Director, Energy Services
Ohio Farm Bureau Federation
280 North High Street
Columbus, OH 43218
Phone: