Buckeye Land Holdings, LLC is involved in the facilitation and negotiation of oil and gas leases, contracting of timbering services using selective timbering practices, viable property and land research for owner acquisition, and industry related land uses including design and development of intermodal depots, secure above-ground storage, temporary housing, warehouse leasing, and fresh water supply for drilling and industry related applications.
Oil and Gas Lease ImportanceA lease is typically provided from the oil company to the landowner requesting the exploration of oil on their property. A lease is typically short-term, requesting on average, five years to explore your land for drillable oil. During this time, if the oil company has drilled in areas around your land and has not been successful, there is a possibility they won't even drill on your land. It is important to acknowledge that if they do drill on your land, they will be using large equipment and you will experience additional noise. At the end of your lease, the oil company will be required to stop drilling unless you are willing to sign a new lease.
If the chance is strong that your property is going to yield oil, the oil company may try to buy your mineral rights for a lump sum of cash. You should receive a percentage of royalties to be paid on the value of the oil found. A cash bonus based on a price per acre represents the initial payment under the lease. If your land is capable of producing oil, but is not producing due to well maintenance issues, you will still receive a Shut-In Royalty.
Process of DrillingOnce a drilling unit is formed, a drilling permit will be applied for. The permit is government issued and allows drilling under state regulations for one year from the date of issue. When the oil company has determined the appropriate area to drill the well, they first have to clear vegetation, including trees and plants on your property. This will be the most long-lasting effect drilling will have on your property. If you would like to protect personal property, fences and similar items, make sure it's in the lease. The actual process of building and drilling the well only takes a few weeks. This process can be delayed depending on the earth they are drilling into and the weather conditions. The oil company will build an access road to reach the developed well pad, which is typically one acre in size. Once the well is built, it may take a few weeks to make sure it runs properly. During this time you will see service members back and forth to the well. The building stages of the drilling process are the most disruptive part and only last a short period of time. In order to make sure that the drilling doesn't affect the use of drinking water, a member of DMRM (Division of Mineral Resources Management) will make sure the drilling doesn't exceed the depth of water source. Once your well reaches the point where it is no longer yielding oil and gas, there is a possibility that it will be plugged. For most landowners drilling is a source of income, and if they sign with an oil company they will be compensated. Unit aggregation of contiguous leased property is a minimum of 640 acres in size. Typically, most units run in a southeast to northwest direction.
Counties Where We Work:
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