Encino Seeks Deal to Develop Salt Fork State Park
Posted April 25, 2023
Encino Energy proposed a nearly $2 billion deal to drill for oil and gas under Ohio’s largest state park, Salt Fork State Park. The offer included a $115 million signing bonus and 20% royalty payment on oil and gas sales from minerals under the park. While the proposal was rejected, it signals potential future endeavors as a new state law allows companies to drill under Ohio’s state parks. Encino made this offer right after legislation was passed that forces state agencies to accept drilling proposals from qualifying energy companies. The law is contested by environmental advocates, and further rules are yet to be established. Encino claims their drilling won’t impact the park’s surface land or water, but the proposal depicts well pads surrounding the park. They also commit to best environmental practices and minimizing flaring.
This move by Encino Energy demonstrates the potential value of mineral resources under Ohio’s state parks, especially with the Marcellus and Utica shale formations underneath.
Gateway Royalty (www.gatewayroyaltyllc.com), founded in 2012, is a mineral and royalty acquisition company based in Carrollton, Ohio. Gateway owns minerals and royalties in the Utica in the following counties located in southeastern Ohio: Belmont, Carroll, Columbiana, Guernsey, Harrison, Jefferson, Monroe, Noble, and Tuscarawas.