Ohio Farm Bureau Landowner Toolkit - Page 12

Oil and Gas Leasing Before an oil and gas producer can drill, deepen, convert, plug back, plug and abandon, or reopen a well, the producer must obtain a permit from the Ohio Department of Natural Resources’ (ODNR) Division of Mineral Resource Management. Prior to obtaining a permit, an oil and gas producer must obtain permission from the landowner(s) to enter the land. This permission is in the form of an oil and gas lease agreement. LEASES MUST BE IN WRITING. Every effort should be made to negotiate terms of the lease agreement that are fair to both the landowner(s) and the producer. All lease agreements should be negotiated, prepared and reviewed by a qualified attorney before signing. Following are some issues and lease terms to consider when negotiating a lease. Understanding the Parties Involved The lessor is the owner of the minerals to be extracted. Every person with an interest in the property needs to sign the lease. The lessee is the company interested in obtaining the rights to drill and produce the oil and gas. The lessee is not always the same company d ]