CHESAPEAKE LEASE RENEWAL

Has anybody in Ohio, especially Carroll County, had their lease with Chesapeake renewed?  Ours is up in November, and still no word.

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Permalink Reply by DJ on September 13, 2015 at 11:29am
Mary Ellen: make sure you do not have an evergreen clause. CHK put these in all the leases where if they pay a small fee per acre you auto renew 3 years. So now I am coming up on 8 years. The check for the renewal came within 30 days of the end of the first five years and was a very low amount. There is no getting out of these auto renewals if they are one minute late after midnight file and end to the lease with the courthouse. Maybe yours does not auto renew in 2008 first batch of lesees were screwed as lawyers were cluless in 2008
Permalink Reply by Joseph-Ohio on September 13, 2015 at 1:14pm
DJ and everyone else,

This one took a little time to 'sink in'.

So, you write of an 'evergreen clause' that enables the lessee to maintain the leasehold for a bargain price after initial and all subsequent terms / basically perpetually - and that back in 2008 the O & G attornies (working for the lessors) were all clueless regarding it' s specification ? ?

That's a good one !

Would like to read that language / clause to try and become familiar with it so as to eliminate it from any leasehold agreement we might be involved in someday.

Hard to understand how a lessor's hired attorney would miss that kind of thing isn't it ? ?
Permalink Reply by DJ on September 14, 2015 at 4:21am
Not perpetual only 3 years. Very common contract language and lawyers here in Oh not as savvy as now. (In 2008)
Permalink Reply by Billy Ray on September 14, 2015 at 3:55am

Lease came up for renewal at the end of August and CHK did not renew. Contacted their rep and they said they are not leasing at this time. Contacted several other companies and they are not renewing either.

We had a 105 acre lease in Carroll County. You will need to get the recorders office to make sure that has been put on your records at the courthouse.

Permalink Reply by Joseph-Ohio on September 14, 2015 at 4:10am

Well, I think that's something we all should take notice of Billy Ray.

Thanks for the info.

Of course now wondering why ?

Perhaps no 'evergreen clause' in your old lease or other / more stringent terms pertinent to your lease specifically ?

Or, perhaps they have enough on their plate right now ?

Or perhaps they can't find any interested JV partner candidates ?

Kindly follow up and advise should you / your land begin getting new offers to lease - that would definitely be of interest to all of us.

Thanks again.

Good luck Billy Ray and all of the rest of us.

J-O

Permalink Reply by mary ellen on September 14, 2015 at 4:18am

Thanks for the information.  What part of Carroll County are you in?

Permalink Reply by Billy Ray on September 14, 2015 at 4:40am

Monroe Township. I contacted several companies and brokers. All they would say is that they were not leasing in the are at this time. I have no clauses that would extend and CHK did confirm the lease has expired.

Permalink Reply by Joseph-Ohio on September 14, 2015 at 4:44am
Thanks Billy Ray.

Should things change kindly keep us in the info. loop
Permalink Reply by mary ellen on September 14, 2015 at 4:58am

We're in Union township near the Rutledge well.  Are you near that area? 

Permalink Reply by Billy Ray on September 14, 2015 at 7:02am

We would be a few miles north of you.

Permalink Reply by Booger on September 14, 2015 at 12:04pm

no development in that township.............seems you may be across the oil death line...........maybe better in the future.

Permalink Reply by Ben on September 14, 2015 at 6:14am

We have approximately 600 acres between 4 land owners in Jefferson County OH that expires Oct. 5. Chesapeake has the option to renew at $1,200 and 15%. I haven't heard anything and I have called the corporate office. The gentlemen indicated to call back within 7 days of the lease expiring and he will be able to see in the system if the lease will be renewed.

If I hear/find out anything new, I will provide an update.

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