Ohio shale owner oil and gas royalty interest?
Energy giant Andarko Petroleum recently reported results from 2 oil and gas wells in Ohio's Utica shale. (Such wells use horizontal boring and fracturing techniques to maximize production from the shale.)
A mineral lease lessor frequently receives one-eighth (12.5%) of the sales of oil and gas from a well. If there is more than one landowner in the well, that royalty is shared according to the portion of each lessor’s land.
A real world example:
The two Guernsey County wells online for about two months, averaged 167 barrels of oil and 308 thousand cubic feet(MCF) of natural gas per day. Assuming oil & gas prices of $100/barrel and $6/MCF, first year production might be worth $6.8 million, with a landowner royalty of as much as $844,000.
Since production typically drops dramatically during the first year, the expected landowner royalty for the first year would likely amount to some fraction of this, maybe $100-200K.