The Star Beacon; Ashtabula, Ohio

Local News

February 13, 2012

Landowners’ group works under the radar

400 who are concerned about drilling meet

PIERPONT —  It may the most secretive large group in Ashtabula County since the “Blackstrings” banded together to protect John Brown Jr. after his father’s raid on Harpers Ferry, Va., in 1859.

The Eastern Ashtabula Landowners Association formed in December, has held two meetings “under the radar” of media and the general public. The most recent gathering, held Feb. 2 at Pymatuning Valley High School, drew 400 landowners with combined holdings of 30,000 acres.

Their common thread, in addition to owning land, is concern about the impact that Utica shale drilling projects will have on the county’s environment, rural heritage, scenic byways and future generations of landowners. The group is not necessarily against the development of gas and oil resources in the county, but its members want to make sure landowners don’t sign leases that will come with unpleasant surprises five or 50 years into the agreement.

“The main word we are trying to get out is that we’re all concerned about landowners’ rights, the environment and having a well- written lease,” said Dr. Paul P. Mechling, a Pierpont landowner and one of the committee members who began exploring a landowners’ group. Other original members include Glen Holden and Pam Hudson, also of Pierpont.

The group has grown entirely by word-of-mouth and email. Mechling said the six farmers/businessmen who form the core group came together to explore their options because they were concerned about the flurry of activity by speculators twisting landowners’ arms to sign “tail-gate” leases. The broad agreements seek to lock up as much land as possible, then re-sell it to an energy development company.

The typical signing bonus being offered is $1,600 to $2,000 per acre, but Mechling said the landowners can often do better if they work as an association.

“One of the main goals of our group is to let people know that there are options out there rather than having someone show up at your door,” Holden said.

“A lot of people are jumping at the first lease man who stops by and offers then $1,500 to $2,000 an acre,” Mechling said.

The landowners are working with Bob Rea of Leetonia, an organic vegetable farmer and owner of Buckeye Mineral Development, a key player in Columbiana and other counties where the gas rush has already flared. Rea brings together large blocks of land and then negotiates a detailed lease with an energy company on behalf of the participating landowners, who have the final say in accepting or denying the provisions.

“We, as landowners, should become mineral managers. As an association, you have more negotiating power as a group,” Mechling said.

Hudson said that many of the poorly written leases cover everything that is below the surface, from the oil and gas to sand, gravel, coal, ore and water. Because there are potentially valuable byproducts that will be released by hydraulic fracturing, landowners need to make sure they don’t sign away their rights to everything. For example, Mechling feels that the radon and other isotopes that will come up with the gas may have some future energy applications, as well.

A lease that works well for the landowner will also address issues like placement of compressors, pipelines and drilling equipment near homes, barns and livestock. And it looks beyond the current generation and quick infusion of cash to the long-term prospects for the family land.

“Our grandkids will be wondering “What was grandpa doing when he signed this lease? Was he on the right rocker that day?’” Mechling said.

Mechling, Holden and Hudson anticipate that they will eventually sign a lease for their lands. Trained as a geologist, Hudson has studied the process and feels it can be safe, but both the drilling and leasing of land need to be approached methodically and with the big picture in mind. She said her cousin was contacted on Jan. 29 with an offer and told she had only two days to make up her mind. The cousin also was told that all but one of her neighbors had signed with the company, but when she made a few calls discovered the opposite was the case.

“They are strong-arming these people, and a lot of them are elderly,” Hudson said. “The most critical thing is the protection that you can get from a properly written lease.”

Although their association was initially formed to represent landowners on the eastern side of the county, the group has quickly attracted those from other areas. Mechling welcomes any homeowner with questions about leases to come to the next meeting, which has not been scheduled. He said it wants to continue as a low-key organization, and all meeting notices are made through email.

To get on the list, send an email to eala.shale@gmail.com.

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