neighbor got renewal letter and check to extend lease for 3 more years.this is in nottingham twp.leased with cheasapeake its odd because lease isnt up till 4/16/16.anyone else get renewed.still waiting myself
What company are you leased with? and which Township are you in.?
Annual payments my have some tax advantages but I would want a guarantee that all 5 years will be paid regardless of when drilling activity takes place.
No one could definitely answer this question without seeing the contract. However, once a well is drilled a division order would be prepared, and no additional minerals lease payments would be due as the land is "held by production.
I just received a call from a Chesapeake landman who wants to release 100 acres in Rumley TWP. The original lease lapsed 2 years ago. It appears they want to expand their production in that area by drilling within the next 2 years. I'll update this info after receiving their written offer.
We've been contacted as well. 12 acres...Rumley Twp. Our original lease lapsed in Oct 2016...Chesapeake did not renew. Our lease offer is $1500/acre signing bonus, 15% royalties, 2 year term with option to renew another 2 years.
Update for Rumley township Harrison county follows. One landowner has reported accepting $1650 an acre with a 17% royalty. Another landowner has been offered $2000 an acre with an 18% royalty.
Al, For what term are those numbers, annual, 2, 3, 4, or 5-year? Include a primary term and option term?
Rumley TWP Update: Chesapeake is planning 2 new drilling units in the next 2 years. The pad will be in the vicinity of Kilgore Ridge and Thompson Rd. The laterals will run to the SE for approximately 3 miles. Best offer reported to me is $3000 per acre for 2 year lease with 19% royalty. KWGD is representing some of the landowners and has a goal to exceed the aforementioned numbers.
Al, see my post below. Chesapeake will be out of Ohio in the 4th quarter of 2018. Not sure if this is good or bad for the Play, but it may signal a burst of activity before the deal closes.
The pad is already there off of Thomson Rd. it would seem to me that they would be drilling that before the deal is done .
David, They can't drill yet as not everyone is leased!
Well if that's the case lets hope they sign soon so that this unit gets drilled. While they are still active in this area . Don't wanna miss out again.
got a certified letter from chesapeake fri. but wasnt home, so prob have to go to post office next week to get it. just wonderin if anybody else got one. if so what is it about?