State Resources

Would you believe the State of Ohio doesn't know and can't tell you who many acres we own, or even where it all is? Neither can they tell you specifically what minerals interests that we own.

This isn't really that strange or uncommon in fact. Often fractional property interests are conveyed and through time is widely distributed in tiny pieces.

Furthermore, each state agency who owns property, basically manages that property itself. All the property, that means their mineral interests as well. Certainly the Department of Transportation can assess and evaluate it's own mineral estate interests, right? And I am a doctor, let me write you a prescription. If you had an expert in the family you would ask, right? How often do you think the the Ohio Division of Geological Survey is asked about mineral resources from other state agencies? The Survey is home to the experts within state government and they are rarely, if ever consulted, on mineral (geologic) resources.

Nor can they tell you the total value of the property they are managing (particularly the mineral estate). And by value, we mean tangible value to the citizens of Ohio. A value that considers all potential revenue generating resources. This is not to say just because we know the value of something that we are somehow obligated to exploit it. It is like your home, you kind of like to know its value, so you know how much equity you have in it. Whether you chose to access that equity, well, that is a separate and distinct question.

What we are really talking about here is oil and natural gas, although the same applies to any potential resource (coal, peat, limestone, gravel, etc.). With respect to these mineral interests we don't know what the value is, and state government are not the people to make those assessments. Reserve analysis can be excruciatingly simple, or excruciatingly complex (the product price has a huge impact on reserves - what will prices be in five years? Who knows?).

We applaud Ohio lawmakers for beginning to recognize that they are responsible for the management of the resources of the state. While the serenity and beauty of our natural areas, parks, preserves, lakes, etc seems boundless, we should temper a protective attitude with some reality. These areas have been farmed, timbered, dumped on, used, and abused since the colonization and industrialization of Ohio, so as beautiful as they are, pristine they are not. These areas are covered with trails, access roads, nature centers, cabins, and hotels, all of which have a significant and lasting footprint on the parks, not to mention the pollutants generated by the operations of the parks so that Ohio's can drive to and in, to hunt, fish, hike, and play (with smog spewing cars, boats, 4-wheelers, snowmobiles, etc).

We suggest that the oil, gas, and mineral interests of the parks, owned by the citizens of the state of Ohio, are also resources, potentially valuable resources. We believe the regulatory agencies in place can effectively manage wells on state lands as they manage the currently 50,000 producing wells that exist here today. The real risks are minimal, and the payoff enormous.

The economic impact of the energy extraction activities in the state is real and significant. Opening state lands and waters to development will create a significant economic impact, in jobs, in royalty revenue, all to produce a energy resource produced here, and used here, that reduce costly imports for the citizens of Ohio.

The states of Michigan and Pennsylvania have an excellent nomination system, by which parties who are qualified to assess value and are ready to assume the risk nominate properties that they are interested in. Once or twice a year the state holds an auction, for nominated properties which meet some criteria, and for which a minimum bid is established and we see what the market bares.

Don't believe the naysayers, the State lands contain significant energy resources, which like any other resource, should be managed. Make state lands, parks, natural areas, fee properties in any agency, available for reasonable resource development. It makes sense that these resource be managed by a central agency. Ohio needs Ohio’s energy, and we need, more than ever, every job we can keep or create here and every dollar we can save and keep within Ohio.