Chesapeake Lease expired. Getting screwed by SWN

Susquehanna County:

I'm hearing from a lot of clients and former clients that after Southwestern Energy let many of the Chesapeake leases expire without pooling them they are coming around and offering $0 and 15% royalty. They don't want to sign a new lease with you but rather extend your current Chesapeake lease. The $0 upfront money was a slap in the face but the continuation of the old Chesapeake lease has been and even bigger deterrent.

I'd like to know how many people out there have had this happen to you and what your response has been?There have been several that have just said "No thank you" (which seems to surprise SWN).

Views: 2071

▶ Reply to This

Replies to This Discussion

Permalink Reply by bo boboski on November 6, 2013 at 10:57am

Remember; that Oil & gas down there belongs to the landowner. If someone wants to drill for & transport it to a buyer, the landowner should get their fair share, whatever that amounts to. to the GasCo's, evidently nmot much!

Permalink Reply by Paul Gildea on November 7, 2013 at 10:17am

I had a lease with Chesapeake for five years, renewable for five more years for the same amount as the first five. When the first five years expired I waited four months for payment on the second five years, when I didn't hear from Chesapeake I contacted the court house in Montrose only to find out that the lease had been transferred to southwestern, so I contacted southwestern and was told that they were not going to drill in the northeast. They notified me by email that they were letting the lease expire.

Permalink Reply by Chip Snyder on November 7, 2013 at 10:59am
Paul, The Ararat area is more than likely going to be developed by Cabot. You may still get a lease in the future.
Good luck,
Chip
Permalink Reply by Ty Hansen on November 8, 2013 at 2:30pm

Has anyone heard any news in regards to new leases being signed in the Union Dale, Herrick Center or surrounding areas? I've heard more than a few times that Cabot is the main company in the area. Thanks for any input.

Permalink Reply by Summer Johnston on November 9, 2013 at 2:36am

It seems to me that if a company is offering nothing to lease the ground--tying it up--and 15% of potential royalties, there's really nothing in it to derisk the landowner who agrees to encumber the ground. Agreeing to renew the lease for nothing, as I see it anyhow, has nothing in it for the landowner and may actually be detrimental if some other company sees value in it.

 

 

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service