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Topic: That there Black Gold discovered

Topic: That there Black Gold discovered

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GoCats105
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Member Since: 1/31/2006
Location: Seattle, WA
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That there Black Gold discovered

Posted: 7/19/2012 11:12:38 PM

For those who live in the Eastern Ohio area, close to the border of West Virginia and PA, you've probably heard the rumors of major oil deposits being discovered throughout the rolling hills of our great state. Well, I'm here to put the rumors to rest and the impact on our tiny little town of Athens and SE Ohio in general could be enormous, thus making putting Ohio University right in the middle of it.

This is all coming from my dad, who lives in Carrollton, OH, north of I-70, east of I-77, about 45 minutes west of the border. Basically right smack dab in the middle of what I am talking about.

About 3-5 years ago, energy companies (mostly oil and natural gas) started doing major searches in the Western PA area for their prospective resources. They drilled probes into the ground and like a ping device on a submarine, these probes would alert back any findings that were beneficial enough for the companies to start drilling. Well, a lot more was found in these hills than anticipated, so much so that the energy companies believe the deposit stretches from Western PA all the way down through SE Ohio (basically Appalachian country).

Now, from what I have heard from my dad and multiple sources, these energy companies are going around buying up all kinds of land and pinging the ground and then drilling whenever necessary. And if you're lucky enough to own the land on some of these properties, their paying hefty sums of money to you. Supposedly, Eastern Ohio and particulary SE Ohio have the potential of being "the next Texas."

This is not a joke either. Already, acres and acres of land have been bought up around my dad's farm and the citizens of Carrollton are eating it up. We're talking about a town between 2,000-5,000 depending on what census you look at, and a high school that will graduate between 100-250 every year.

Now, to the important part of this story. How does this effect SE Ohio and Ohio University? Well, from what we've heard, SE Ohio is the richest of all this land and when the oil and gas companies get there, it's going to be like a whole new world. I can't imagine how much of an economy boost this will be to the poorest part of the state. Don't believe me? My dad used to live on a very poorly paved road with no cars ever traveling on it. Now, the road is like a race track. Newly paved, and semi trucks going in and out of the place like ants on an ant hill.

Can you imagine how much of this money can be generated in SE Ohio and how much it will gain (possibly) for the university? These workers are going to need entertainment and Ohio Athletics is the perfect solution. Right now, they are regularly taking energy company workers by 15-passenger van on trips up to Canton, OH every weekend (that being the closest "major" city).

The only problem is, it's going to take a while to get to that point, and take a while to get to SE Ohio. They just recently crossed the border from Western PA and into Ohio, and have only been drilling around my dad's farm for probably 8 months. I know patience is a virtue, but what a blessing it would be to get this started as soon as possible, not only for the poor folks of SE Ohio, but the state of Ohio and Ohio University as well.

Thoughts?

Bobcatbob
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Member Since: 12/21/2004
Location: Coolville, OH
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RE: That there Black Gold discovered

Posted: 7/20/2012 9:45:30 AM

The leasing boom has been featured in newspapers and TV news features. There are hundreds of thousands of dollars being paid to property owners for options and mineral rights. Whether any of that money, including the presumed oil profits, ever gets into general circulation in SE Ohio will be interesting to see. It wouldn't be the first time a recoverable fossil fuel affected this part of the country and King Coal didn't leave much for the ordinary citizens when the easy money was gone.

Keep your Green and White fingers crossed while your hand is firmly covering your wallet.

Last Edited: 7/20/2012 9:47:26 AM by Bobcatbob

Ohio69
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RE: That there Black Gold discovered

Posted: 7/20/2012 10:03:24 AM

http://www.athensnews.com/ohio/article-37375-attorney-tells-landowner-clients-that-cunningham-has-landed-big-venture-partner-for-local-oil-gas-venture.html

Allegedly $65 million in bonuses to local landowners. Seems too secretive for me to believe yet.

But, I've been told to prepare for a ton of divorces. Likely a bunch of new car sightings. And, not much else really.

Can somebody hit a pull up jumper for me?.....

Jeff Johnson
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Member Since: 12/20/2004
Location: Albuquerque, NM
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RE: That there Black Gold discovered

Posted: 7/20/2012 11:45:49 AM

Bobcatbob wrote:

It will be interesting to see how this all plays out, and how much the local communities will actually benefit. Most of the underlying mineral rights of SE Ohio are owned by coal companies, among them, notably, the Sunday Creek Coal Company, which operated many mines in SE Ohio in the first half of the 1900's, but now exists mainly as a shell company, located in Nelsonville, to manage those mineral rights and the surface properties owned by the Company.

The State of Ohio and local governments need to be smart about making sure that they get a cut of the profits from any oil/gas production.

Jeff Johnson '67, Albuquerque, New Mexico
Back in the Land of Enchantment

JSF
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Member Since: 1/29/2005
Location: Houston, TX
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RE: That there Black Gold discovered

Posted: 7/20/2012 7:54:29 PM

It's also unclear whether these deposits extend to Athens County. There's so much we don't know.

"Loyalty to a hometown or city is fleeting and interchangeable, but college is a stamp of identity."- Kyle Whelliston, One Beautiful Season.

My blog about depression and mental illness: https://bit.ly/3buGXH8

Mike Coleman
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RE: That there Black Gold discovered

Posted: 7/20/2012 11:59:10 PM

Recently on my way to my grandfather's funeral, I passed a once desserted motel in SEO. The once-abandoned motel was recently re-named "Shale" and it's gravelly parking lot was absolutley full of pick-ups and obviously not hurting for any customers when I drove by. This might have been about nat gas, not oil. But all I can say on the matter is, I hope local residents... 1. don't give away their rights for a few short-term bucks and... 2. the energy companies don't go bust by over-paying for speculation. As long as things proceed rationally, it should benefit the SEO economy.

GoCats105
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Location: Seattle, WA
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RE: That there Black Gold discovered

Posted: 7/21/2012 1:37:57 AM

Agreed that there is a lot we still don't know, but it is an interesting topic and it does impact Ohio in more way than one. And I also agree with Mike that hopefully people are smart about the situation. From what I have seen just around certain areas, the energy companies are finding a lot more than they anticipated. Thus they've actually had to offer more incentives/money to drill on land than the land the were already drilling. Some people are holding out until the very end also, not wanting to give up their land on something that could turn out to be nothing more but a few reserves found here and there.

Andrew Ruck
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Member Since: 12/22/2004
Location: Columbus, OH
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RE: That there Black Gold discovered

Posted: 7/23/2012 8:32:00 AM

There is bound to be some squabbling over the ownership of the deposits. Trying to figure out ownership of a mobile liquid a mile deep into the soil sounds challenging to say the least. I agree this is a big emerging story.

Andrew Ruck
B.B.A. 2003

Business_Cat
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RE: That there Black Gold discovered

Posted: 7/23/2012 8:47:51 AM

I think that it's a big chance for the OHIO to become more involved with SEO. Imagine a university official sticking up for the landowners kind of thing.

And the thought of economic prosperity in SEO sounds phenominal. Imagine OUr students actually staying in the area to work instead of all the brain-drain

You know what Frank Solich likes most about coaching in the MAC? While he gets older, his coaching competition stays the same age, man.

The real O-H-I-O

Bobcatbob
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Location: Coolville, OH
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RE: That there Black Gold discovered

Posted: 7/23/2012 11:29:57 AM

Mike Coleman wrote:

..... I hope local residents... 1. don't give away their rights for a few short-term bucks and... 2. the energy companies don't go bust by over-paying for speculation. As long as things proceed rationally, it should benefit the SEO economy.

From someone who has been there, the history of the oil patch offers little hope that both of these statements are true. It's a lot like visiting Vegas. Leaving while you're ahead is the hardest part of the whole experience.

bobcat695
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Location: Parkersburg, WV
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RE: That there Black Gold discovered

Posted: 7/26/2012 11:14:37 AM

The energy companies are backed by very large venture capital firms and hedge funds. They won't go bust unless there is no economic reason to continue funding their operations. While, the bonus payouts seem huge in Athens County terms, they are a pittance to the multi-billion dollar pools of cash that fund this. I grew up in Woodsfield (Monroe County) and they are seeing the effects of the boom there.

I have advised all of my clients that own significant acreage in Athens County to evaluate their options before making a decision to accept an offer. One firm has made the biggest play in Athens, so the options are a bit limited. I have read they 50 page contract cover-to-cover and it is fair. This will not be Powerball money, but it will make some families much more comfortable.

If there is indeed a boom, Athens will be positively affected. The trickle down effect for anyone that owns a business in a profitable community will be seen, not just for the landowners. There may be an opportunity for the university to benefit. I don't predict a large sponsorship coming out of this, but it could create a bigger pool of potential individual donors.

"You can't un-fist a fist pump." - Saul Phillips 1/24/15

74 Cat
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Member Since: 2/23/2005
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RE: That there Black Gold discovered

Posted: 7/27/2012 6:52:33 AM

Is every landowner in Athens County left to fend for themselves? Some counties formed landowner associations and hired legal counsel to act as a common agent for them. Here is an example:

http://mclg.org/

The Optimist
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Location: CLE
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RE: That there Black Gold discovered

Posted: 7/31/2012 7:44:31 PM

A man from the Hocking Valley Bank came in and talked to my Bank Management Finance class this last year. I don't recall his exact position, but I believe he was a board member and also had a CFO type roll. He was discussing issues the bank faced, and his most serious concerns revolved around the cash coming in from this boom.

Not only was he concerned about lost revenue moving forward as locals paid down debt, he was also concerned with how he could possibly find enough new investment opportunities to place all the money rolling into the bank while generating solid returns. Whether there is actually oil will determine whether SE Ohio sees the big bucks from royalties, but either way SE Ohio is seeing a very significant cash boost from the sale of mineral rights. I am somewhat surprised landowners in SEO actually own mineral rights with coal mining from years past, but I guess they do.

I don't recall the exact $ figures, but it was an extremely significant amount of money he was forecasting rolling into SEO. Hundreds of millions on the low end. If they actually find black gold, wow. Property values in Athens are shooting up because of this. A lot of people stand to profit. This isn't even factoring the affects new jobs will play on the economy.

Athens News on wells being drilled
http://www.athensnews.com/ohio/article-37429-local-drillers-have-two-more-wells-planned.html

It is still very early on in the process, but this could change the face of Ohio Athletics and OU more than anyone could imagine. Just look at what the energy boom has done in North Dakota.

I've seen crazier things happen.

Jeff Johnson
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Location: Albuquerque, NM
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RE: That there Black Gold discovered

Posted: 8/1/2012 12:39:35 PM

The Optimist wrote:

Not only was he concerned about lost revenue moving forward as locals paid down debt, he was also concerned with how he could possibly find enough new investment opportunities to place all the money rolling into the bank while generating solid returns. Whether there is actually oil will determine whether SE Ohio sees the big bucks from royalties, but either way SE Ohio is seeing a very significant cash boost from the sale of mineral rights. I am somewhat surprised landowners in SEO actually own mineral rights with coal mining from years past, but I guess they do.

As I implied in my earlier post, it is questionable as to how many landowners in Athens County (and surrounding counties) actually own the mineral rights under their properties and stand to benefit directly from royalties. The coal companies own most of the mineral rights in areas where the coal deposits are, especially in the northern part of the county including York, Dover, and Trimble Townships. How much coincidence there is between the locations of the coal deposits and the oil/gas-bearing shale will be a critical factor in determining how much individual land owners profit from the boom.

Jeff Johnson '67, Albuquerque, New Mexico
Back in the Land of Enchantment

JSF
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RE: That there Black Gold discovered

Posted: 8/4/2012 5:27:48 PM

There's a long-standing lack of trust for the energy sector in Athens County. But that might not matter as Sunday Creek and other groups hold a ton of mineral rights. If someone does hit paydirt, it could get really ugly. There's a lot of resistance already and nothing has really happened.

I hope and pray if money does come in that the people of Athens County benefit. History and seeing current deals, however, suggest otherwise.

Business_Cat
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RE: That there Black Gold discovered

Posted: 8/15/2012 6:50:31 PM

Now this folks, it what I like to see from OHIO University. I was hoping they'd find a way to be the main facilitator of the SEO economic boom. Here it is:

http://www.ohio.com/blogs/drilling/ohio-utica-shale-1.291...

You know what Frank Solich likes most about coaching in the MAC? While he gets older, his coaching competition stays the same age, man.

The real O-H-I-O

OhioCatFan
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Location: Athens, OH
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RE: That there Black Gold discovered

Posted: 8/15/2012 7:41:15 PM

Link does not work.

The only BLSS Certified Hypocrite on BA

"It is better to be an optimist and be proven a fool than to be a pessimist and be proven right."

Note: My avatar is the national colors of the 78th Ohio Veteran Volunteer Infantry, which are now preserved in a climate controlled vault at the Ohio History Connection. Learn more about the old 78th at: http://www.78ohio.org

Business_Cat
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RE: That there Black Gold discovered

Posted: 8/16/2012 4:21:04 AM

OhioCatFan wrote:

Link does not work.

Strange because it works fine on my computer. Here is it again:

http://www.ohio.com/blogs/drilling/ohio-utica-shale-1.291...

You know what Frank Solich likes most about coaching in the MAC? While he gets older, his coaching competition stays the same age, man.

The real O-H-I-O

OhioCatFan
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Location: Athens, OH
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RE: That there Black Gold discovered

Posted: 8/16/2012 11:47:58 PM

Yes, that one worked. Thanks for the second effort!

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