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 Billy Ray on September 14, 2015 at 7:03am

Ben,

From some of the talk on other blogs I see where some people in Pa are not getting renewed also.

If the market come backs. That is what everyone keeps telling us.

Permalink Reply by Joseph-Ohio on September 14, 2015 at 7:10am
We're wondering if there's not more interest in foreign shale plays these days ?

Israel, Egypt, Australia come to mind.

Been a lot of news breaking about shale and off-shore in those places these past few days.

Could that be hampering the domestic 'market' ? ?
Permalink Reply by Larry E Bowman on September 14, 2015 at 9:10am

Our lease expired in August

Permalink Reply by mary ellen on September 14, 2015 at 9:22am

What part of Carroll County are you in?

Permalink Reply by Robin Smith-lutz on September 14, 2015 at 9:48am

If they are already gathering your gas in a pooled unit do they have to re-lease your land as well?

Permalink Reply by Billy Ray on September 14, 2015 at 11:31am

If I was in a pool then I would not be looking to re-lease. Everyone assumes we don't understand the process.

Permalink Reply by Joseph-Ohio on September 14, 2015 at 12:11pm
Very GENERALLY, the way I understand it, if already leased and in a pooled unit and a well is drilled and is producing the lessors are supposed to be paid royalty for their acreage pro-rated portion of the production per their leasehold agreement terms / conditions / specifications.

As I further understand, as long as the well produces in paying quantity the lessors / their leased land is considered Held By Production (HBP) and is not eligible / available to be re-leased.

Just my understanding of the machine.
Permalink Reply by Robin Smith-lutz on September 14, 2015 at 1:09pm

We are being paid...losing 50% to gathering fees ....and all 4 checks barely amount to $200.00 if that ....and it has been that way since May, 2014. All crappy checks. We really got fleeced here in PA with  the states help.

Permalink Reply by White Tiger on September 14, 2015 at 2:18pm
How many acres? What % is your lease?
Permalink Reply by Larry E Bowman on September 14, 2015 at 3:05pm

I am in Greene co. Pa.  Vantage energy is a scam company!!  they moved us to a different well over 5 miles away, Just when my lease of 5 yrs was up. no call or nothing..  after repeated calls + emails I`m told maybe Jan. 2016 I would get paid..I was also told laterals are 7000 ft. How can I be in this?  we were in a pool of 420 till june ,close by. then moved to a pool of 940!  Has anyone else had to deal with them... the new well is over 25500 ft. away..

Permalink Reply by Joseph-Ohio on September 14, 2015 at 10:56pm
Wondering.

You write that you were 'moved' from one 'well' to another different 'well'.

Which reads to me like there are two (2) wells producing now and your acres are / were involved in both.

One would think you would be earning something on both wells (as long as both are producing).

Are there two (2) wells involved with your acres now ?

Or was one 'Shut In' or 'Plugged and Abandoned' or some other ?

What happened to the 1st well that you were 'moved' from ? Is it's lateral still 'Draining' production from your land ? Do you now have two (2) horizontals traversing your land ? Did the 1st 'Drilling Unit' get smaller ?

Wondering ?
Permalink Reply by Billy Ray on September 15, 2015 at 12:09am

There have been several people talk about the wells that are having negative pay out on NGLs. The price is so low at this time that it is not profitable to produce. That is the best answer when discussing why leases are not getting renewed. Currently, there is no profit here. I'm fine with that. The old saying you have to make hay when it is not raining. It is raining right now on this market.  OPEC is keeping the prices low by overproducing, They don't have to worry about the United States' infrastructure.  Welfare, taxes, EPA regulations. All that restrict our ability to produce cheap liquid energy. I didn't have this money 6 years ago and we all did fine. So I'll stay out for another sunny day. Maybe this will lower some prices on land in these areas and I will buy more land.

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