Under the new rules that take effect Tuesday, oil and gas drillers will be able to nominate parcels of land for potential drilling to the Ohio Department of Natural Resources’ Oil & Gas Land Management Commission.
“It’s like a ribbon-cutting,” said Mike Chadsey, director of public relations for the Ohio Oil and Gas Association. “State lands leasing is open – cut the ribbon and see who’s interested.”
Gov. Mike DeWine has said that the state won’t allow any new drilling activity – such as rigs, roads, or tanks – on state-owned land while he’s in office. However, energy companies could still access oil and gas underneath state land by setting up wells on adjacent private property and drilling horizontally to extract oil and gas from underneath state land.
While it remains to be seen how many applications the state will receive, at least one company – Texas-based Encino Energy – has offered the state a signing bonus of $115 million and royalties it says could total nearly $2 billion“I think there has been and continues to be a lot of interest,” Chadsey said. “But I don’t know that anybody’s going to see a line at the door at 8 a.m. or anything like that.
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