Replies to This Discussion

Permalink Reply by JDM on March 30, 2012 at 7:48am

Same thing happened to us in south mahoning county....we have a $5000 offer and waiting to sign....then they told us that chesapeake was pulling out offers and only offering to people that were going to be in a unti or right against a unit.....but they offered us $4000 for a surface lease and $2500 for a non-surface lease.....we are also unsure of what to do......join a land group or what??

Permalink Reply by Kris Smith on March 30, 2012 at 12:44pm

I would take $4000 but they are not even close... would try a land group but don't know of any getting anything right now.  Are you also in a unit?  I don't understand this big fuss over the last few acres but I guess they figure they have you over a barrel.

Permalink Reply by JDM on March 30, 2012 at 11:00am

Why did they refuse to represent you? Did you deal directly with CHK or use the landsman?

Permalink Reply by David L Humphrey on March 30, 2012 at 10:29am

Yes - DPS rep told us that they would go around us, even though we are in the area of a unit, if we did not sign.  They said Chesapeake is taking the attitude that smaller tracts can easily be left behind because they can pass with their drill bit VERY CLOSE to your property, plus they can extract in Ohio only 500 feet away from your property, thus making your acreage undesirable for anybody else for future drilling because they will have extracted all they can from around you.  Also, signing affords you SOME protections in case of water damages, etc. - where if you don't sign, you will be on your own if something weird happens with your water supply.

Permalink Reply by Kris Smith on March 30, 2012 at 12:01pm

I think it is a very nasty move on their part... the landman did tell me if I didn't sign they would just take the gas out from under me.  I would think they would just pay the few thousand dollars they agreed to in the first place and be done with it but I guess not.  I know this is big business but no integrity here.    @David,  did you sign and would you say what your bonus and royalty was?  My husband doesn't want to sign at all so don't know what we will ultimately do... will be happy when it is all over.

Permalink Reply by Nancy LeNau on March 30, 2012 at 4:10pm

I don't live in Columbia County, Ohio. I live in Hookstown, PA. and I was told about a month ago that if you didn't sign by March 22, they....Chesapeake..... were going to lower the Bonus $$.   And they did.....on March 22 !    From $3,350.00    17 1/2 % Royalties....to $1,800.00. and 15 % Royalties.  I think you might get a better deal a bit later with Shell or Chevron....   sooner than you think....  Good Luck to you..... 

Permalink Reply by Kris Smith on March 30, 2012 at 4:32pm

Don't think shell or chevron would be interested since all land around me is leased to chesapeake...

Permalink Reply by Nancy LeNau on March 30, 2012 at 5:25pm

Chesapeake can be bought .....??  we will see what the future holds ?

Permalink Reply by David L Humphrey on March 30, 2012 at 5:42pm

Kris, we are the same - surrounded by Chesapeake.  That is part of our concern.  They are controlling the transaction by saying if we want in on the deal, we sign "their" lease, which obviously is worded more in their favor than a landowner's favor.  The ALOV site has a lease sample document that you can look at and compare with the Chesapeake document and you can see the differences - BUT with small acreage you can't really do anything about it (no power to negotiate), so they have you wondering whether you should miss out on your existing unit by not signing, or get SOMETHING by signing - because the opportunity will not come again once the unit's well becomes active.

Permalink Reply by Kathleen on March 31, 2012 at 1:01am

Did they say why for your area. As others have said here they are saying there is no competition . When I called them about my neighbor and was told that, I said there never was any to begin with than he said it's the pricing, we were paying 2 grand last year and it got to high. Since I still couldn't resist I said, well it was Chesapeake who first offered to pay those amounts. I knew I wouldn't get anywhere but it was kinda fun. My neighbor now hopefully is in great shape. I hate a landman.

Permalink Reply by JDM on March 31, 2012 at 7:47am

Would you let me know as well as I am in the same boat? Does a lawyer have a better chance of negotiating with CHK? How does that work.... does the lawyer contact the landsman or do they directly contact CHK? I am still trying to figure all this out. Who did u sign with?

Ken.....what did the lawyer get u per acre and what royalty?

Permalink Reply by JDM on March 31, 2012 at 9:18am

Thanks for letting me know. I am going to get a lawyer and see what happens.

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