Chevron Greene County PA-I have a lease expiring in April. They are making a lame offer to release.

 112 Acres in Greene County. Original Three year lease for $3250 per acre 18%. Lease expires in April 2013.

They are trying to release at $750 per acre for 5 years additional. Does anyone have any information on what is going on with Chevron in Greene County. I have been jerked around by Chevron since July. Promises of development, permitting etc etc. I am not please with their professionalism nor forthright communication. Of course they are saying that they are going to let the primary term expire if we do not agree to something. I believe I have them back to $1500 per acre for 5 years with all other terms the same. Any info out there on their development plans. Property is almost directly south by a few miles from the Cooper Well that EQT has. At this point I am inclined to let the lease expire. Any info would be appreciated.

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Permalink Reply by Henry Edwards on December 17, 2012 at 4:10am

Have not contacted other drillers yet but EQT is biggest in area active-I have other leases with EQT so they will be the first I contact.The going rate cannot drop that much in three years. I would let it expire for that offer

Permalink Reply by Schnoozie on December 17, 2012 at 4:24am

Sounds like a call to EQT is in order then, hope you get a good lease.

Permalink Reply by Jon Popio on December 17, 2012 at 8:36am

If it were me I would probably let it expire. Take the long view and wait. Nat gas prices aren't going to stay low forever. You have a big enough piece that you can be a problem if you are not leased in an area that gets development interest.

Permalink Reply by James T Monyak on December 17, 2012 at 8:50am

I agree with Jon, but if you want money now than you need to take a different path.  Some of us are a little aged and can't wait much longer.  I waited 5 years for my first Marcellus well.  What happen in that 5 years.  I now need a cane to walk and now take two pills a day to thin my blood and keep my thyroid level acceptable.  Maybe in the next 5 years I will not be able to enjoy the wealth or maybe I will not be here.  Yes, I am selling part of my Marcellus rights in Clearfield for $3500 per acre.  Selling part of my mineral rights gets me cash now and keeps me in the long term pay out.  I know it will pay in the long run since I have one well already and this is for real!!

Permalink Reply by Jim Litwinowicz on December 17, 2012 at 10:04am

I would consider letting it expire but I would first talk to all the neighbors, see what other leases are expiring, and who is willing to work together.  Get several hundred acres together and you will probably get a better deal. Even if the neighbor's leases  expire late next year, be patient and work together.

Permalink Reply by rmc on December 17, 2012 at 12:27pm
That's the position that we are in the western part of Greene County in Richill township we have small group of people probably 30 or so that all leased together so our leases all expire within a year of each other.
And we all intend to market our properties as a continuous plot if and when our lease expires with Chevron in two years.
Chvron has the option to extend the lease for another 5 years for another 5 thousand an acre but none of us really think that Chevron will pay that.
Permalink Reply by Jim Litwinowicz on December 18, 2012 at 3:07am

Excellent strategy....hope it ll works out for you.

Permalink Reply by Stephen Fox on December 19, 2012 at 10:42am

Joe I spoke to my brother in law Henry Edwards today. Me are 50/50 partners, send me your email address also. So Henry and I can comunicate with you together.

Steve Fox

foxfin@comcast.net

Permalink Reply by Stephen Fox on December 21, 2012 at 4:56am

Goodmorning Joe

I only received Steve,

 

 

 

Permalink Reply by Janice L. Hancharick on December 20, 2012 at 5:21am

Penn State's Marcellus Center for Outreach and Research saw a need for education for folks facing the exact scenario you described.  A 4-man team of educators and lawyers have been traveling around (in and out of state) to address the questions you and others have.  I recently had them come to the 4-County region in northcentral PA / NY'sSouthern Tier.  It was entitled:  "Already Leased?  What are my Options?"  Centering on the fact that too many will believe the company land agents (once again!), and they re-lease without studying the issues further.  Obviously that's not you!

Typically companies want to  re- lease, make alterations to existing leases, or add on more clauses when they come a'knockin'.  Speakers explained the main reason for such actions is there's something the company wants to change in the original document ... naturally to their benefit.  A landowner's wallet is not their concern nor will it ever be!

The crowd was advised that if a lease is expiring ... fine.  That means you gain total control over your AC once again! Chevron (and all leasing companies) should place a document in the county recorder's office that's proof their hold has been relinquished ... a Letter of Surrender.  This should happen in April, but often takes longer. (Be a squeaky wheel when the expiration date has been passed.)

When you choose to lease again ASK  YOURSELF "What do these 3 things have in common?  Brain surgery, dentistry, and leasing. These are actions no one should do on their own!"  This quote was used several times @ the meeting in Coudersport, Potter County's county seat.  Options for leaseholders like yourself Henry ... lease again or not at all.  If you choose the latter, continue with the homework and do one of two things: Find a large group with representation that holds a strong track record for delivering lease deals beneficial to your wallet, the environment, and ample protection clauses ... att'y's provided for the membership.  The second option is to research for a proven gas/oil att'y  that can get you a solid lease.  This could mean slipping you into a large group, because w/112 AC you really don't have negotiating power.  It's very likely that folks in your county and near-by counties have leases similar to yours, i.e.. about to expire and the company wants to negotiate.

*** Chevron may be starting @ such a ridiculously low $$$ to keep your focus on the money and % royalty. Any rise in either number will make you feel like you've accomplished something, when in truth the REAL action (changes) will be on the pages following.   The Penn State meeting stressed that to the audience.  Some with expiring leases will remember that, and some won't.

ALL  MAJOR  GAS/OIL COMPANIES have a strategies that allow them to accomplish great things around the entire world.  That's good!  We are all part of a global economy.  If the magnitude of all this seems over-whelming and you choose to sign with a small company, be rest assured it's still a Middleman proposition ... just like hiring your own att'y or maximizing your imprint with a large group.

Because your lease will expire in several months, you CAN sign a contract with a large group to market your property with 1,000's of other AC.  Deals take considerable time to market and negotiate.  By the time they happen, you'd be free and clear anyways.  CAUTION: Make sure you aren't obligated to sign a lease you don't like ... even if the group favors it.  IT'S  YOUR  LAND.

GOOD LUCK!

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