CARROLLTON, Ohio, Sept 2021
How does HB152 hurt landowners?
House Bill 152 aims to revise the state law governing how mineral owners are forced into pooled units by oil and gas companies. If this bill passes, the results would give more power to oil and gas companies, enabling them to force Ohio landowners to hand over their minerals for less than fair market value.
Based on recent versions of the bill, key negatives for mineral owners include:
Does not account for clever tactics operators can use to pay mineral owners less in royalties by deducting costs, such as selling oil and gas to a marketing affiliate or adding a “market enhancement” clause to a gross proceeds lease.
Mineral owners will not be paid a bonus when they are force pooled into a unit.
Sets a royalty rate of 12.5% for all forced-pool unleased mineral owners. The norm in recent years is in the range of 16-20%.
Allows an oil and gas producer to submit an application for unit operation when only 65% of the acres in the proposed unit are under lease. That means 35% of acres can be forced into the unit.
CONTACT
Chris Oldham, President
Email: info@gatewayroyaltyllc.com
111 2nd St. SW
Carrollton, OH 44615
330.627.4200
www.gatewayroyaltyllc.com
Reference: https://gatewayroyaltyllc.com/hb-152/ https://gatewayroyaltyllc.com/hb-152/