COLUMBIANA COUNTY Venture to result in drilling of hundreds of oil and gas wells

Officials are checking to see if the project will result in a tax revenue bonanza.
By NORMAN LEIGH
VINDICATOR SALEM BUREAU
LISBON -- Hundreds of oil and gas wells are likely to be bored into Columbiana County ground over the next five to 10 years, a group of executives says.
The oil and gas businessmen advised county commissioners Wednesday of their drilling plans, which will largely center on private land in Center, Salem, Elkrun, Fairfield and Knox townships.
Drilling is expected to start in about two weeks on property in Knox Township.
Wells will plunge to depths averaging about 8,000 feet.
Nearly 20,000 acres owned by about 200 people have been leased.
The joint enterprise is being undertaken by Bill Blair of New Springfield, Black Gold Exploration Inc. and Scion Energy Inc., both of Wooster; and Ball Resources Inc. of East Liverpool.
Improved pipeline facilities serving Columbiana County and a sound oil and gas market helped prompt the venture, Blair told commissioners. Oil is now selling for about $25 a barrel, and natural gas is going for more than $6 per 1,000 cubic feet, Blair said.
Commissioners said they welcome the enterprise, which is taxable and is expected to bring revenue back to the county.
Commissioner Jim Hoppel said commissioners are contacting the state to determine whether the potential tax revenue will amount "to anything to get excited about."
Property owners will receive lease money, free oil and gas, and 12.5 percent of the money the well on their land produces.
Saying they didn't want to tip their competitors, executives wouldn't tell how much they're paying for the average lease. They noted that well drilling and operation is strictly regulated by the state.
Water wells near drilling sites will be tested before boring begins. That information will be available should any complaints arise about water being affected by the drilling.
Casings are used when drilling to protect ground-water supplies, the oil and gas executives said.