Posts Tagged 'land owners rights'

State Rep. Okey Speaks Out Against Chesapeake Energy Corp.

During an interview featured in a new investigative piece by Reuters, State Representative Mark D. Okey (D-Carrollton) voiced his opposition to Chesapeake Energy’s forceful practices regarding the leasing of land for oil and gas development.

“They believe in intimidation tactics. They threaten you. They will yell at you….It’s all about getting you to sign,” Rep. Okey told the news outlet. “You don’t sign? We’ll go around you. You don’t sign? You’ll not get anything out of your mineral rights. You don’t sign? Then you’re going to pay the price because we’re going to take those minerals from you.”

Representative Okey is responding to constituents who have labeled Chesapeake’s “landmen” as the most aggressive – and sometimes deceptive – in securing leases. Many Ohio landowners have testified that Chesapeake seeks to “force pool” their land, which uses a little-known provision of state law to mandate that unleased property is included in drilling units.

Representative Okey has sponsored HB 493, known as “The Truth in Leasing Act,” to guarantee basic leasing protections and a minimum royalty for Ohio’s landowners akin to those found in neighboring states. 

Read the full story here.

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Rep. Okey Works to Protect Landowners from Deceptive Practices By the Oil and Gas Industry

This week, NBC 4 investigated if landowners are being “ripped” off by oil and gas companies buying up land for fracking.  As fracking is starting boom in Ohio, State Representative Mark D. Okey recently introduced his “Truth in Leasing” bill (HB 493) to protect Ohio’s landowners against fraud, abuse, and deceptive practices by the oil and natural gas industry. 

Watch NBC4 Investigates: Are Landowners Getting Ripped Off By Fracking?

HB 493 will include provisions in three main areas: fairness, honesty, and accountability. Minimum royalty payments will be set at a level that reasonably compensates landowners for their resources, while prohibiting oil companies from using legal loopholes to take more than their fair share. Landowners would have the right to yearly audits – at the driller’s expense – to ensure that their royalty payments are accurate.

To guarantee an honest leasing process, the “landmen” who secure leases on behalf of drillers would be subject to a new licensing system. Before any lease is signed, landowners must be informed of their rights and encouraged to consult with an independent attorney to protect their interests.

Finally, companies would be held accountable for the consequences of drilling, by disclosing all chemicals and compounds used to the Ohio Department of Natural Resources, paying for the testing of local water supplies before and after drilling, and issuing public notification of any accidents or incidents related to drilling that may result in property damage or health risks.


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