MOUNDSVILLE, W.Va. — An attorney representing the largest successful land group in West Virginia’s northern panhandle says a deal announced last week is just a fraction of what’s going to happen in the Ohio Valley in the years to come with the Marcellus and Utica shales.
Jonathan Turak represents approximately 500 families in Marshall and Ohio counties that have cut a five-year lease deal with Texas-based Tug Hill Operating. He said land bonuses for those families will total approximately $100 million.
“They (Tug Hill) pay the up front bonus in order to secure the opportunity to develop your property or to place your property into (natural gas) production,” Turak said. “Assuming then that your property is placed into production–then they pay you royalties.”
Turak said the leases will continue if drilling for oil or natural gas begins during the five-year period. He said royalties could end up being $400 to $500 million for the group. He said the mind-boggling thing is the group he represents is just a small fraction of the 200,000 acres in Marshall County.
“I think that our community has not yet come to grips with the enormity of what’s likely to occur here,” Turak said.
Many property owners signed five-year leases between 2008-2010 and those leases have expired or will so soon. Turak said the residents have received bonus money but in many cases the land has yet to be put into production. He says they will be able to secure new leases. He said it will be lucrative for many residents.
“It’s a wave that is growing and it is far from having crested and it’s going to sweep through the (Ohio) Valley like no other wave that has ever descended down through our valley,” Turak predicted.
You don’t have to own land in Marshall, Ohio or surrounding counties to take advantage of the development according to Turak. He said the area has many needs for accountants, insurance agents, doctors, restaurants, hotels and other businesses.
“There is so much opportunity for the individual with some initiative, who’s got some entrepreneurial spirit in them,” Turak said. “I think it’s going to transform this community.”
Property owners who don’t have existing lease or have one that will expire before June 30, 2015 can still sign on with the Tug Hill Operating land group.