We were part of a group that signed leases with Fortuna back in Dec 2009. Those leases expire in Dec 2014. We learned that our particular lease, for 200 acres, was sold to Chesapeake, though we have never been officially informed of us. 

Tow years ago year Chesapeake informed us, as an adjacent land owner to a proposed well, about their plans because they were close to our water supply. They said they would be drilling withing 6-18 months (Nov. 2013 was 18 months). They said all they needed was for a pipeline to come to Franklindale and the drilling would start.  We have been told the pipeline has been there for a while now, yet to our knowledge, no drilling has commenced.

When we looked at the well proposal we saw that it starts on a neighbor's land, then extends into our land. They partioned off a gew feet on each side of the line and show that 20 of our acres are in the larger parcel., but not the other 180 acres we have in the lease.  Their map shows that 75% of the proposed well is on our property running down that  20 acres. So the gas will actually come off of our land, but we will only be creditted as having 20 acres in the well unit. Looking at our lease it does say it can be assigned to another unit, it just looks fishy. But that is not the question

We know they have did put a pad in for that well, and have applied for 5 permits for that unit. We have not received a division order or any notification from Chesapeake that we are part of the unit, though your map shows we are, as does the detaail that came will the water info piece. 

So there are a couple of aspects to my question.  It is my understanding that if the lease holder begins to drill on our property they do not have to renew the lease, just pay the royalty % from the lease, or if they drill and cap it temporarily, all they ahve to do is pay $2000 per year, without being required to renew the lease. Is that correct?

Technically they have done something which includes our property but we have no legal notification.  So... what happens if the lease expires?  Can they say they do not want to renew it with the 3 year renewal clause in the lease (because that would advantageous to them since our royalty rate is 20% well head price, with no deducations). And then could they say they will offer us a new lease with something like 10% royalty, plus deductions?

I am sure there are mamy in Bradford County with a similar situation.