Chesapeake in Jefferson County, Ohio, Offering One-Year Lease Renewal - GoMarcellusShale.com2024-03-29T08:37:15Zhttps://gomarcellusshale.com/forum/topics/chesapeake-in-jefferson-county-ohio-offering-one-year-lease?commentId=2274639%3AComment%3A725976&feed=yes&xn_auth=noI will terminate the lease.tag:gomarcellusshale.com,2016-04-04:2274639:Comment:7265642016-04-04T23:11:31.837ZRobert J. Smithhttps://gomarcellusshale.com/profile/RobertJSmith
<p>I will terminate the lease.</p>
<p>I will terminate the lease.</p> Does anyone know if the lease…tag:gomarcellusshale.com,2016-04-04:2274639:Comment:7265502016-04-04T21:15:34.230ZDeehttps://gomarcellusshale.com/profile/DavidCole
<p>Does anyone know if the leases in Jefferson County Ohio are part of the properties that Chesapeake mortgaged? I'm just curious is they have to keep some of the leases active. Regarding our lease: We are expiring mid April and have not heard anything. I have talked with the original landman and was told that they are only going to renew some of the Jefferson County leases. We own our minerals in an llc company and we have decided that if they offer we will only accept the 5 year bonus…</p>
<p>Does anyone know if the leases in Jefferson County Ohio are part of the properties that Chesapeake mortgaged? I'm just curious is they have to keep some of the leases active. Regarding our lease: We are expiring mid April and have not heard anything. I have talked with the original landman and was told that they are only going to renew some of the Jefferson County leases. We own our minerals in an llc company and we have decided that if they offer we will only accept the 5 year bonus payment, or 5 - 1 year payments with the remainder payable / due when drilling starts. Other than that we will let the lease expire and wait out the market.</p> Robert,
Thanks for your post.…tag:gomarcellusshale.com,2016-04-04:2274639:Comment:7265452016-04-04T20:40:44.394ZD.C. Harrishttps://gomarcellusshale.com/profile/DawnHarris
<p>Robert,</p>
<p>Thanks for your post. It's imperative that landowners understand that everything CHK or any other O&G company does is in the company's best interest, not the landowner's.</p>
<p>We have a Pugh clause that requires CHK to place 60%+ of our land in any given unit or forfeit lease rights to the rest of our land (that is included in that contract) after an automatic 2-year extension for including a-n-y of that land in a drilling unit. When we signed, we thought that sounded…</p>
<p>Robert,</p>
<p>Thanks for your post. It's imperative that landowners understand that everything CHK or any other O&G company does is in the company's best interest, not the landowner's.</p>
<p>We have a Pugh clause that requires CHK to place 60%+ of our land in any given unit or forfeit lease rights to the rest of our land (that is included in that contract) after an automatic 2-year extension for including a-n-y of that land in a drilling unit. When we signed, we thought that sounded fair enough, but CHK never plays fair. They play dirty. A year or two into our five-year lease, CHK included twelve one-thousandths of one acre of our land in a drilling unit: yes, .012 acres, an area smaller than our living room. Doing so has given them an automatic 2-year extension, as I mentioned above. The reason I bring this up is that I believe most landowners assume that if they're included in a unit, it'll be a chunk of their acreage, not a sliver of an acre. Allowing CHK to go from a 640-acre unit to a 1,280-acre unit gives them double the opportunity to "clip" you just like they clipped us. And beware, a 1,280-acre unit does not lock up just 1,280 acres of land: It can easily lock up 3,000 acres for at least a few extra years with just one well. </p>
<p>We are lucky to have a Pugh clause, or we would be permanently stiffed and locked into a permanent relationship with CHK. We are also lucky that we signed two separate contracts with CHK for parcels we own that are contiguous. This is the only reason CHK hasn't locked up all of our land for a few extra years. Regarding drilling units and contracts, I have a few pieces of advice to anyone new to this or anyone considering re-signing: 1) If you own separate parcels, insist upon separate contracts, each with its own Pugh clause better than ours; and 2) Never, ever agree to increasing your unit size. </p>
<p>D.C.</p> This is my strategy, now that…tag:gomarcellusshale.com,2016-04-04:2274639:Comment:7263492016-04-04T16:44:59.194ZJWEhttps://gomarcellusshale.com/profile/JamesEverson
<p>This is my strategy, now that my lease has expired without renewal payment or activity, and wait for a future offer. But I wish to make a recording of the fact the original lease has expired for public purposes which I am told must be done by Chesapeake since their lease expired without payment for extension or activity. To my knowledge, there has been no activity in Wells Township to "spike" the original leases. </p>
<p>The fact that Chesapeake must sign a release is contrary to my logic…</p>
<p>This is my strategy, now that my lease has expired without renewal payment or activity, and wait for a future offer. But I wish to make a recording of the fact the original lease has expired for public purposes which I am told must be done by Chesapeake since their lease expired without payment for extension or activity. To my knowledge, there has been no activity in Wells Township to "spike" the original leases. </p>
<p>The fact that Chesapeake must sign a release is contrary to my logic and thinking but I have initiated the request from Chesapeake per legal counsel advice . Chesapeake acknowledged receipt of my request almost two months back but have not provided a release. </p>
<p>Are there others in Wells Township who worked with DPS Penn five year back who have heard nothing??? What actions are you taking, if any??? Has Chesapeake provided Lease Releases to anyone???</p> I might be interested in lett…tag:gomarcellusshale.com,2016-04-04:2274639:Comment:7263472016-04-04T16:05:39.128ZDavid Allen Lillyhttps://gomarcellusshale.com/profile/DavidAllenLilly
<p>I might be interested in letting the lease expire if they don't renew and wait for the market to come back, which it will.</p>
<p>I might be interested in letting the lease expire if they don't renew and wait for the market to come back, which it will.</p> My five year lease expired on…tag:gomarcellusshale.com,2016-04-04:2274639:Comment:7265132016-04-04T15:30:02.418ZJWEhttps://gomarcellusshale.com/profile/JamesEverson
<p>My five year lease expired on February 2, 2016 and to date I have not heard a peep from either DPS Penn or Chesapeake who they were fronting for.....I have sent a request to Chesapeake via their on line service requesting a termination of lease. They acknowledged receipt of my request and forwarded it to their land department.....have heard nothing since my early February request.</p>
<p>My five year lease expired on February 2, 2016 and to date I have not heard a peep from either DPS Penn or Chesapeake who they were fronting for.....I have sent a request to Chesapeake via their on line service requesting a termination of lease. They acknowledged receipt of my request and forwarded it to their land department.....have heard nothing since my early February request.</p> From what you have written, i…tag:gomarcellusshale.com,2016-04-04:2274639:Comment:7261082016-04-04T14:54:43.717ZRick Heinzmannhttps://gomarcellusshale.com/profile/RickHeinzmann
<p>From what you have written, it does not appear that CHP has an option to renew the Lease for 1 year and is making the 'offer' to avoid paying the full amount, to the landowners, while preserving their leasehold in hopes things will change during that year.</p>
<p>By accepting this 1 year extension you are 'Amending' the original Lease Agreement and the 'Extension' document should be closely examined for other changes to the 'Terms & Conditions' of the original Lease…</p>
<p>From what you have written, it does not appear that CHP has an option to renew the Lease for 1 year and is making the 'offer' to avoid paying the full amount, to the landowners, while preserving their leasehold in hopes things will change during that year.</p>
<p>By accepting this 1 year extension you are 'Amending' the original Lease Agreement and the 'Extension' document should be closely examined for other changes to the 'Terms & Conditions' of the original Lease Agreement.</p>
<p></p>
<p>If no other companies have expressed interest, in leasing your mineral interests, and the terms CHP is offering are acceptable you might consider accepting their 'Offer'. Alternatively, you advise them you will accept the 3 year renewal as provided in the Lease or a Termination of the Lease (include the termination in your letter).</p> You know it, Bo!
That is what…tag:gomarcellusshale.com,2016-04-02:2274639:Comment:7259822016-04-02T15:57:15.624Znc manhttps://gomarcellusshale.com/profile/normanwinnsr
<p>You know it, Bo!</p>
<p>That is what my brother is doing for us!!</p>
<p>Solidarity is the key move for us all!</p>
<p>ncman</p>
<p>You know it, Bo!</p>
<p>That is what my brother is doing for us!!</p>
<p>Solidarity is the key move for us all!</p>
<p>ncman</p> That's good news pay attentio…tag:gomarcellusshale.com,2016-04-02:2274639:Comment:7261662016-04-02T15:45:48.700Zbo boboskihttps://gomarcellusshale.com/profile/boboboski
<p>That's good news pay attention,everyone,be patient,hold out as long as you can.Read Toms post again&again.</p>
<p>That's good news pay attention,everyone,be patient,hold out as long as you can.Read Toms post again&again.</p> Our leases expire April 15 an…tag:gomarcellusshale.com,2016-04-02:2274639:Comment:7259762016-04-02T15:39:34.879ZRobert J. Smithhttps://gomarcellusshale.com/profile/RobertJSmith
<p>Our leases expire April 15 and have not heard a thing from Chesapeake. They finished seismic testing about a month ago and do not expect to have results until sometime in Summer according to the workers I talked to. Two weeks will tell the tale for us as far as what Chesapeake will do. The only leverage we have is to stick together in dealing with Chesapeake or any other company. I think everybody has seen what happened in the past when everything was so secret. I will let you know what…</p>
<p>Our leases expire April 15 and have not heard a thing from Chesapeake. They finished seismic testing about a month ago and do not expect to have results until sometime in Summer according to the workers I talked to. Two weeks will tell the tale for us as far as what Chesapeake will do. The only leverage we have is to stick together in dealing with Chesapeake or any other company. I think everybody has seen what happened in the past when everything was so secret. I will let you know what happens as it happens, or not The other ploy Chesapeake is trying is trying to get you to sign into a larger drilling unit. Ours is 640 acres and they want to go to 1280, all for our benefit of course. They say it opens up opportunity to benefit from a larger area that may hold more oil and gas. They forget to mention that you may well be sitting on the mother lode and will have to share it with more people if you go for the 1280 acres. They sent us a check for $10 with instructions to go to a notary and have the document signed that increases the drilling unit size. It appears that they are looking for the gullible among us who just follow orders. Our attorney sent them a letter stating that we will go into a bigger drilling unit for $1,600 an acre. We received a smart ass answer back stating that nobody is being paid that much money and that the demand is ridiculous. He did not mention how ridiculous his letter asking us to sign for the increased drilling unit for $10.00 was. In checking we found that the guy recently graduated from law school and was awaiting the results of his bar exam. Hope he flunked because we do not need any more lawyers like that. Bottom line is that Chesapeake wants you to go to a bigger drilling unit so they can sink one well in 1280 acres and tie up those 1280 acres as long as the well produces without paying additional lease money to the landowners. One well ties up 1280 acres instead of the 640 in the original agreement. It cost 5-6 million to drill a well so they save 5-6 million up front or until they want to drill again when the gas/oil prices go up. On top of that more landowners are going to share royalty income in that one well until Chesapeake determines to drill more wells. Good luck out there </p>