Understanding “Held by Production” in Gas Leases: What it Means for Landowners in the Utica Shale Play
What does "held by production" really mean, and how does it impact landowners today?
Posted September 3, 2024
Brandon and Heather Huffman’s story began at a bowling alley in Salineville, OH. High school sweethearts, they started a small family and now have two wonderful kids: a daughter and a son. Their lives are deeply rooted in their home and property, which they cherish and maintain together.
Brandon and Heather’s daily routine was a whirlwind of activities. Heather juggled household chores, from feeding chickens to mowing the lawn, while Brandon managed a full-time job and worked at his family’s campground, often stretching himself too thin.
This hectic lifestyle took time away from their kids, a challenge they were determined to overcome. “I’ve always been really busy, too busy. Because I always worked a full-time job and then worked for my parents at our family campground on the side and it took a lot of time away from the kids because I was working two jobs. This house became a huge project house. It put a lot more on Heather and it took a lot of time away from the kids. I was definitely stretched too thin.” Said Brandon, while asking himself, “How do we get better? How does this get better? What can we do to not just grind everything away all the time?”
The idea of selling mineral rights came to their attention through a flood of mailers and phone calls. Initially, they were skeptical, unsure about the legitimacy and benefits of such offers. The traditional mindset of ‘never sell your mineral rights’ also added to their hesitation.
Brandon and Heather discussed this as a family and realized that selling their mineral rights could significantly change their lives for the better. “We were skeptical because a lot of people tell you, ‘Oh, no, you hold on to that forever.’ That’s kind of the area mentality.” Heather said, “But everybody’s situation is different. We talked about it as a family and there were a lot of conversations like, you know, if we did this, this could really change everything.”
A referral led Brandon to Gateway Royalty’s Blaine Grace, who made an immediate impression with his casual, informative approach. Brandon told us, “I was referred to Blaine directly at first. And it was just a quick phone call, and I was like, you know, I might be entertaining it, and he wasn’t pushy at all. He kind of told me what they were looking for, what they were doing, and that was kind of the end of it. And it left me to think more about our options.”
Gateway’s community involvement and small-town feel resonated with Brandon and Heather. “Gateway put a lot [of money] into the school,” said Heather. “They’re the kind of people that you want to do business with. They’re friendly, they almost feel like friends. You just met them, and they talk to you just as casually as a friend would.”
Brandon and Heather sought a life-changing deal, and Gateway Royalty delivered just that. Unlike other companies offering small percentages or shared amounts, Gateway provided a substantial upfront payment that exceeded their expectations.
“The initial offer was good, and it got us thinking that this is going to change everything for us. And we were still on the fence, not sure, you know, with the offers we’d got from other companies and stuff. And then after talking to Blaine we felt great about it” said Brandon.
Selling their mineral rights to Gateway Royalty allowed Brandon and Heather to pay off all their debts, invest in home improvements, and still have money left for future investments and emergencies.
The transformation was immediate. Being debt-free brought immense relief and allowed Brandon to reduce his work hours, spending more quality time with his family. They invested in solar panels, which promise long-term savings, and are now planning further investments to secure their financial future.
Heather summed it up, “We bought our house a few years ago. We’re making it a home now. It feels really good to be able to breathe. Because we’re debt-free, we have the emergency money now, and we were able to do everything we wanted to do to the house, along with still planning for our kids in the future. This deal has changed our lives.”
Brandon has also been able to spend more time at home: “Because of the money from Gateway, I’m able to turn down overtime. I don’t have to constantly live at work, and it’s given me more time to be with my family and do more things with the kids.”
Brandon and Heather’s journey with Gateway Royalty has been nothing short of life changing. From the initial skepticism to the final decision, the support and transparency from Gateway Royalty made all the difference. They are now debt-free, building their dream home, and preparing for their kids’ future, confident that this was the best decision they ever made.
Are you an Ohio resident interested in learning more about selling your mineral rights or royalties for an upfront payment? Talk to Gateway Royalty today.
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