Chesapeake fails to make lease payment extension due April 15, 2016 on ALOV contract dated April 15, 2011

We have 140 acres in Jefferson County Knox and Island Creek Twps. with Chespeake lease thru ALOV dated April 15, 2011.  Payment on three year extension was due April 15, 2016 but no payment has been made.  I think that they are playing games to delay until they get the seismic results from test run earlier this year.  For all intents and purposes the lease has been abrogated.  For you who are interested you can go through a procedure to record the broken lease.  Go to this web page for instructions:  http://www.crainscleveland.com/article/20150831/BLOGS05/150839981/o...

If Chesapeake is using our leases for collateral the loaning party should know that the leases are no longer valid which might bring them to the bargaining table.   

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1s7k1qp9wk1t7Permalink Reply by 1s7k1qp9wk1t7 on April 27, 2016 at 7:11pm

Harrison ...I had been told as of late in most instances they are waiting until the last 48 hours. That's exactly how it played out for me

Permalink Reply by Bluflame on May 10, 2016 at 9:30am

Hi Danny,

  Do you mind stating your township in Harrison County? And did CHK attempt to re-negotiate lease terms?

Thanks,

BluFlame

1s7k1qp9wk1t7Permalink Reply by 1s7k1qp9wk1t7 on May 10, 2016 at 10:38am

Archer and no, no renegotiation whatsoever....my lease was set to expire on the 29th....chk cut the check on the 27th and it was delivered certified mail on the 29th

Permalink Reply by Bluflame on May 10, 2016 at 10:56am

Thanks Danny! My Belmont County CHK lease expires 10/31. I'm hoping for a treat rather than a trick!

BluFlame

1s7k1qp9wk1t7Permalink Reply by 1s7k1qp9wk1t7 on May 10, 2016 at 10:58am

Best wishes my friend....I hope so too

Permalink Reply by Robert J. Smith on April 27, 2016 at 7:31pm

jefferson

Permalink Reply by G.H. on April 28, 2016 at 12:08am

They will wait as long as possible in most cases.  That seems to be the way of the business.  Can't say I necessarily blame them.  I do not know what the laws are regarding this, but I would at the very MOST give them until the day of renewal to POSTMARK their renewal check (see what your lease says!!!).  If it doesn't arrive in the time it would take between postmarking in Oklahoma City on date of renewal and delivery to your place in Ohio or wherever (probably 3 days max unless you live in Alaska or something), I would say start with cancellation process.  Unless of course you want them to renew, which I am sure some people do because of the actually decent bonus prices they sometimes paid (regardless of all the smack talked about them on here, you gotta admit they paid pretty well sometimes).

AND if you don't want them to renew and the check arrives after your renewal date, CHECK the postmark date, and see what your lease says!  Maybe they have to have the payment postmarked by renewal date, maybe it has to be in your hand by renewal date, I don't know!  My guess is they are usually pretty on top of this with leases they want to keep, but you never know.

This is all just my opinion and not by any means legal advice, of course.

Permalink Reply by Robert J. Smith on April 28, 2016 at 11:48am

To check on your lease just call Chesapeake at 8772451427 and ask them if it will be renewed. If not start your action immediately to quash the lease at the courthouse based on your lease or ORC 5301.332, whichever is applicable 

Permalink Reply by JWE on May 2, 2016 at 2:58pm

My Lease expired on February 2, 2016 and I have had no correspondence or renewal payment.  I called the 1 800#  back then and was advised this would be turned over to their land department.  Again, no correspondence since that early February call. 

I have nothing to indicate there has been any activity in Wells Township of Jefferson County, Ohio and assume our lease arrangement is now over.  If others have information to the contrary, please advise.

Hopefully with the aid of my attorney we can have this original lease cancelled on the Jefferson County Recorders books.   Seems counter productive to have to have their signature on a release when they are not going to cooperate at this time due to their growing financial woes.

Permalink Reply by Robert J. Smith on May 2, 2016 at 7:36pm

JWE call 8772451427 and inquire about your lease.  Ask if they are cancelling.  They probably are.  You need to get a letter out to them saying that you did not receive lease rent  and  and that you are cancelling the lease.  After call them  come back online and I will try to help you for the cancellation procedure per your contract.    

Permalink Reply by JWE on May 3, 2016 at 3:48pm

I called and spoke with Benjamin,  a Customer Service Rep at Chesapeake, who was very polite and most helpful.  He was able to access my expired lease information on his computer and advised me they were not renewing in the Wells Township, Jefferson County, OH area.  He did state they are renewing on a selective basis in other areas, but did not elaborate.  He provided the name and address for me to send my formal request for a Lease Release:

Chesapeake Energy Corporation

Attn: Mr. Arthur Zwierlein

PO Box 18496

Oklahoma City, OK 73154

My Certified Mailing with Signature Return Request went out this morning.  Upon receipt of the release, I shall have it recorded in the Jefferson County Recorders Office clearing the title for the next event.....and yes, no doubt someone will come knocking when things normalize sometime in the future.  Life is good.

Permalink Reply by JWE on June 6, 2016 at 2:55pm

Earlier on May 3rd  I made this post referencing the need for a release and the information that I was provided and posted.  

Happy to report that today, I received two executed release forms from Chesapeake for filing in the Jefferson County Recorders Office.

Case closed with Chesapeake....

:0)

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