Concord Park
energy development

Benefits

Being part of an Oil and Natural Gas Well has many benefits both economic and patriotic. The primary benefit is economic. Landowners that are part of a well are entitled to 1/8th or (12.5%) of gross well production. Even an average well can produce tens of thousands of dollars in revenue for the landowners. Predicting landowner royalties involves many estimates: the quality of the well (reserves), the price of oil and natural gas at any one point in time, duration that the well is in production and more.

The landowner who physically has the well on their property is entitled to receive 250mcf of free house gas per year and additionally has the option to purchase additional gas at well head prices if needed. This is in addition to their royalties and can add up to tens of thousands of dollars in additional savings over the years. (see chart below)

Royalty Value
250,000Recoverable Reserves (MCF)
$7.50Gas Price per MCF (wellhead)
12.5%Landowner Royalty Percentage
$234,375Total Royalties to Landowners in Drilling Unit
2040Aceage in Drilling Unit
$11,719$5,859Royalty Per Acre (Life of the Well)
Free Gas Value
200Free Gass Allotment per Year (MCF)
$13.50Value at Current Rate
$2,700Value Per Year
20Production Years of Well (low estimate)
$54,000Total Value

Economics

CONSIDER THE FOLLOWING

  • Do you put fuel in your car? Do you use gas to heat your home? Do you know where it comes from? If we do not produce oil and gas locally, then we have to import it from other States in the US. This involves transportation, which wastes additional energy that is needed for transportation.
  • As we all know, even the oil we get from refineries in other States in the US is probably imported from other countries. How many times have we heard about oil spills in the oceans that kill thousands of animals and harm the wildlife? The less oil we have to import, the less risk of spills and the safer it is for the environment. Again, importing from other countries also requires fuel for shipping, and this wasted shipping fuel further pollutes our environment.
  • Furthermore, in other countries where these commodities are produced, the environmental standards are minimal or nonexistent. In Ohio, oil and gas producers are strictly regulated by the EPA and other entities that regulate pollution and limit the permissible environmental impact that can be left. Ohio producers are required to replant cut trees, seed and grass cleared areas and restore the land to the way it was as much as possible immediately following completion of drilling. They are also required to have filters in place to keep the air clean. So oil and gas produced in the US under these regulations actually result in a lower environmental impact than oil and gas produced elsewhere in countries where these standards do not exist.

JOBS

The Oil and Gas Industry employs more than 4,000 direct and 10,400 indirect jobs in the state of Ohio.

PERSONAL INCOME

The Oil and Gas Industry, via its multipliers, is responsible for $730 million per year in personal income in the State of Ohio.

CONSUMER IMPACT

Ohio and its residents keep approximately $1 billion per year in state when buying locally-produced natural gas and crude oil, and Ohio consumers collectively save $65 million per year in avoided interstate pipeline transportation cost and the price reducing impact of having local supplies compared to other parts of the country.

TAX REVENUE

Last year, Ohio's Oil and Gas Industry paid over $57.5 million per year in severance, property, commercial activity, federal, state and local taxes. These taxes are used to fund many of the programs that benefit everyone in the state!

GROSS STATE PRODUCT

The Oil and Gas Industry generates approximately $1.5 billion in Gross State Product and a state-wide output or sales of $3.1 billion per year.

ROYALTIES

Ohio's Oil and Gas Industry generated royalty payments of over $126 million last year, and provided an additional $75 million in "free" natural gas to landowners.

Questions to Ask

If your property is positioned on a viable oil and gas formation and all State requirements for positioning of the well can be met, then the answer most likely is YES. Concord Park Energy can review the geological data along with your property information to give you a better idea of the likelihood of having a well on your property. Contact us to have your property reviewed today.
The actual drilling process typically takes 5-7 days to be complete and is largely determined by the depth of the well being drilled.
Although every well and geological area is different, the typical useful life of a well is 15-20 years or more.
This figure will vary a great deal as it is dependent upon the geological data specific to each location, as well as the amount of land you own. Concord Park Energy can perform an initial analysis that will aid in determining the likely production and life of a well. See the Landowner Royalty Guide to get an idea of typical royalty payments. (Landowner Guide)
The location of the well must be 50 feet from public roads, 100 feet from any occupied building. Other factors used in determining the location of a well are the geological formation, access points, and distances from other wells. Concord Park Energy will always work with the landowner to aid in determining the well site and placement of well equipment.
The noise level produced during the drilling process is approximately 90 decibels within the immediate vicinity of the drilling rig. This level decreases to 80 db at 100 feet and to 70 at 300 feet. Click here to review other sounds levels produced during the oil and gas production process.
Most of the wells drilled in Ohio today are targeting the Clinton Formation, which are typically 3000 to 4500 feet deep depending on the geographical location.
Drilling an oil and natural gas well should have no affect on any landowner's water well. Concord Park Energy and the Ohio Department of Natural Resources takes many steps to ensure that the water table is protected throughout every step of the oil and natural gas well drilling and operating process. Concord Park performs water tests to ensure there are no problems within any water wells before the drilling begins and also performs follow up tests if there are suspected issues from the drilling process. State regulations require that water standards be maintained. (Link to Water table protection diagram)
Only the landowner who physically has the well on their property is entitled to receive 250mcf of free house gas per year and additionally has the option to purchase additional gas at well head prices if needed. This is in addition to their royalties and can add up to tens of thousands of dollars in additional savings over the years.
Upon completion of the well, the tank battery and meter run average 25 ft by 40 ft and if there is a pump jack it will average 12ft by 20ft. The average size of a drilling site is approximately 100 ft by 100 ft and in some cases can be 150 ft by 150 ft during the initial drilling process.
Concord Park identifies areas of interest using the latest geological information systems and software along with historical production data gathered from surrounding wells.
By choosing to be part of an oil and natural gas well and signing an "Oil and Gas Lease" or "Non-Surface Oil and Gas Lease" . Property owners also have the option to keep the mineral rights to the property when it is sold. The "Lease" is a legal document which is attached to your property for the life of the well.
An "oil and gas lease" or "non-surface oil and gas lease" has a primary and secondary term. The primary term of the lease is stated within the lease agreement and will terminate upon that date unless a well is drilled during the primary term. The secondary term takes place after a well is drilled. The secondary term of the lease will stay in affect for as long as the well is in production.
The landowner royalties are based on the percentage of land each landowner has in a well unit. If there is only one landowner who owns the entire acreage, they will receive the full 12.5% of landowner royalties.
The Ohio Department of Natural Resources oversees the entire drilling and production of oil and natural gas wells to ensure that all rules and regulations are met. Concord Park takes great care to ensure that there are no harmful effects on the environment.
The amount of time between the signing of the lease and the drilling process can vary.
The weather plays a role in the drilling and reclamation process. After the drilling has commenced, the final landscaping should be completed within 60-90 days.
Yes. A Plot Plan is drawn up showing the location of the above items for the landowner to approve before drilling takes place.
We use the services of professional landscapers on most of our locations, especially in residential areas.
Yes. We pride ourselves in working closely with our landowners to restore their property to their satisfaction.
If you sign an "Oil and Gas Lease" or a "Location Agreement" we have the right to come onto your property as needed to take care of the well. If you have signed a "Non-Development Oil and Gas Lease" we have to come onto your property.

Guides

Barrel - The unit of measurement for oil used in the industry. One barrel equals 42 gallons.

Delay rental - An annual payment made to the lessor usually on a per acre basis prior to a well being drilled.

Drill Lease - This is a lease that has to be acquired from the landowner that the well unit will be located.

Free gas - An annual allocation of gas to the lessor for domestic heating purposes. The industry standard is 200,000 cubic feet or 200 MCF per year and goes to the person upon whose land the well is located.

MCF - One thousand cubic feet; the unit of measurement for natural gas used in the industry.

Non-drill Lease - This is a type of lease that is acquired from any landowner that is part of the unit, but does not have the actual well located on their property. "Non-Surface Oil and Gas Lease"

Pooling or unitization - A provision that allows the lessor's land to be combined with adjoining lands to form a drilling unit to meet state acreage requirements.

Primary or initial term - The length of the lease in years, typically 5 years or more. The longer the term, the less likely a well will be drilled shortly after signing a lease. Royalty – The amount of production received by the lessor, usually one-eighth (12.5%) of the sales of oil and gas from the well. If there is more than one landowner in the drilling unit, the royalty is shared according to the amount of acreage each lessor has in the unit.

Secondary term - The length of the lease after a well is drilled, usually for as long as the well produces in commercial quantity.

Shut-in royalty - Payment that is received in lieu of production royalty when the well cannot be produced due to production problems or other factors.

Signing bonus or cash bonus - a one-time payment paid to the landowner upon signing of the lease agreement, typically a Non-Surface Oil and Gas Lease. This is in addition to the royalties.

Termination - End of the lease due to expiration of the primary term or when commercial production ceases and the well is plugged.

Additional Information

Decible Levels

Sound Levels of the Oil and Gas Industry
Drilling rig on rig floor90 db
Drilling rig @ 100 ft80 db
Drilling rig @ 200 ft70 db
Drilling rig @ 300 ft60 db
Pump jack running in production75 db
Pump jack running @ 100 ft45 db
Gas well running in production65 db
Common Environmental Noise Levels
Normal Conversation60-70 db
Average Cell Phone Ringer75 db
City Traffic (inside car)75 db
Power Mower107 db
Power Saw110 db
Jet Engine @ 100 ft140 db

Location Size

  • Average - 100 ft x 100 ft
  • Large - 150 ft x 150 ft
  • Tank battery and meter run - 25 ft x 40 ft
  • Pump jack - 15 ft x 15ft

Web Resources

Ohio Oil and Gas Association

Ohio Oil and Gas Energy Education Program

State Review of Oil and Natural Gas Environmental Regulations

ODNR Landowner Info

House Bill 278

Ohio Department Of Natural Resources