Has anyone been re-leased again on their property? We have a 5 yr. lease that is expiring 1 year from now and we are not ure what to expect. I understand we will have to wait this last year to find out b/c this "ball game" changes so much with all kinds of ups and downs. But we also have neighbors who's leases are expirring here in a couple months.
If anyone has been leased for a second go around with a gas company, please let me know how it went. For example, did you receive the same terms and bonus money again?
If you have not heard anything call them- they are probably not going to renew. We have three leases. Two in WVA and one in PA. One is an old lease that is forever. They were going to drill this year in WVA but with the price of gas who knows. EQT also had another lease in Mon county they let expire and did not renew. Make sure you get a filed document on release of the lease if that happens. Our third is with Atlas/Chevron in Greene Co.PA and it expires next April. On our two leases that were for three years at very attractive bonus money. That proves out to be the best thing we did. Of course if you are in a wet gas area they probably will renew. Ususally by contract they renew at the same price and terms but things now are different. Until we have an energy policy I see most leases expiring with no renewal. With gas at less than $2.50 what would you do?
At 2.50 gas, what would I do as a gasco? I would lease big time. 2.50 is unsustainable, we use 65Bcf a day, 65 Bcf, most at a cost higher than 4$, thus production dies out and rock with low cost extraction becomes very valuable in the up cycle.\
When Gas was 12$ would you lease as a gasco? hopefully not because 12$ is unsustainable. And it was big time.
This and economics is a motion picture, not a single photo.
Have not heard yet of bonus rising but soon I think.
The natural gas prices will return and once the LNG production gets in full swing as Shell Oil is planning on providing fill up stations across the United States . I read they have contracted with a major fuel station chain to sell lng to refuel semi trucks and regular vehicles capable of using this new fuel .
Anyone with even gas alone will still get leased at some point . If your old lease is a low price lease it may not be wise to encourage them to renew the lease .It may be much more beneficial to let it expire and hold for a while and later lease for better terms and bonus money . As progress and processing plants gets better recovery results the value of any energy will become more valuable .That is why all the companies scrambled to Ohio to lock up as many acres as they have done so the future prices can be controlled by renewable leases
Best of luck .Mick
This is a good discussion because I do not think you are going to see renewals unless you happen to be in a particularly hot area. I would not hold my breath on renewals. I am getting a lot of letters from companies wanting to buy mineral rights. They know a lot of people will sell cheap. Seems strange to me. I would like others with leases ready to expire to respond. Until Obama goes nothing will happen. i do not blame the companies. Just for full disclosure the PA lease was for 360K for three years for 110 acres
just got a call from our attorney, XTO will be releasing our property the first of July. Gentleman from XTO
said they are very behind in releases from all the property they "are not interested at this time"
Not sure I understand your comment....... from all the property they "are not interested at this time" ......??
Anyways, were your terms the same, as good, or better from your first go around with leasing? Please give some details. I don't need numbers, butam trying to find out who, where, and what all is happening with the re-leasing.
Sorry, XTO claims they are behind in sending out releases on property they are not interested in at this time. Which includes mine. So, I remain unleased, or they are not interested in mine. But strangely enough I joined a land owners group that is meeting with them next week for unleased land. Go figure!
Henry, Are u serious,'' until Obama goes''. What President has adopted the Pickens plan?=Obama.. What President is protecting the lessors rights and at the same time still promoting technology and drilling activities? Obama, what President is still encouraging hiring folks at a rate that you can raise a family and be able to live in the area you work? answer to all President Obama, these are our natural resources not the big oil companies, we own these and can and will decide how to lease them,when to lease them and if some decide to sell, that is their given right, President Obama and his administration have done an excellent job working hand in hand with each of the states and encouraging folks to get the facts 1st, before u jump in. Because of that u say he is holding us back, WOW!.....I supposed now that the price at the pumps is falling, this will be because of the REAGAN administration, but if it goes back up the blame will be OBAMA 1st ,Clinton 2nd.
Ohio-PA. -WVA are flat boomin!....drill baby drill, but before that build my infrastructure, give me a fair market value lease that is landowner,surface, subsurface and enviromentally friendly. We all are in this together, we all must work with each other for the greater good, quit blaming each other for our faults or problems take some responsibility and get out there and make a difference, by positive approach.
Right now the stagnation is Obama's fault. With a failed energy policy the threat of higher taxes no investor is going to do anything till after the election. The president has not protected the lessors rights or he would have put a halt to the anti fracking moratoriums that have denied land owners the right to use their land, such as in the state of NY, MD, . Where has Obama promoted technology in drilling? All I have seen is the bashing of the O&G industry by Obama. I'll quote you " these are our natural resources " I question the use of "our resources" if it is private land it is not ours, only public land becomes ours.
Ohio-PA. -WVA are flat boomin!....drill baby drill Where in the H do you come up with that at? CHK now in the process of selling off leases, according to some threads in here Shell playing games. If it was so rosey there would not be chat in here of China buying out CHK!
What jobs are being created in this area right now? I went to a OJFS job fair and only two, mind you two company that was directly associated with Oil and gas and the one might as well been in Tx recruiting as they were looking for experienced workers! The other was a land company.
Job fairs in our areas are notorious for drawing a lot of folks that can't hold/qualify for most jobs, let alone pass physicals and drug tests. It should be a known fact....one group of possible employees had 46% fail drug tests with a further 8% failing the physical. Then they had to go to safety school. I don't know how many flunked that.
Jobs are there, I personally know a fair number of folks that have a job because of the drilling.
Using a job fair to fill jobs would be my last resort for hiring new empolyees.
There's enough criticism surrounding this industry (some needed), that we don't need to be adding unresearched information to the fire.
New jobs are being had in Beaver County every week. Just 3 weeks ago there was a trucking company advertising for 65 drivers for new trucks on the way. I wonder who is building those trucks? I bet they haven't been able to fill those jobs yet, either. You can't get a hotel room locally most days. Sounds like hotels are fully staffed now. I could go on and on, but I shouldn't need to. These online forums don't feel the pulse of an area. Face to face time does.
Don't let negativety turn into an endless spiral, please.