Transfering a lease

  Had a pitiful lease with CHK..started with Range Resources then went to Great Lakes then to CHK...CHK opted to take the extra 5 yr extention in 2012..haven't paid since 2015..thought it was void now..had a Lawyer looking into the release..got a letter yesterday saying they transferred our lease to Ascent..never said when..Ascent never paid us anything..that lease ended last month..What I want to know is does Ascent have any rights to my lease at the old price?

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Permalink Reply by JK on September 12, 2017 at 9:21am

Your contract speaks for itself.

We have been with 4 companies thru the years.

Now with HG Energy.

So far we like them the most.

We get more in our royalty checks than for many years after dealing with CHK and NEE.

Where are you located?

Permalink Reply by Darlene Nelson on September 12, 2017 at 10:46am

Cross Creek..10 yrs and they never drilled..Had division orders once but it never happened..

Permalink Reply by jett on September 12, 2017 at 7:40pm

Was the letter from your lawyer or Ascent? The leases I've heard of and have seen only have one 5 year extension which it sounds like they used already. Don't know if that's what yours says. But usually you have to pursue the legal release of your lease to be completely free. What does your lawyer say? You can't lease with someone else until it's on record that you are free. Be careful of what the oil/gas company may tell you. I recommended Jeff Rokisky & partners as someone who knows the ins and outs of these kind of lease dealings. He has an office in Weirton, WV and does work in Ohio. 

If Ascent wants to lease again with you and does not have another 5 year option you now have the chance to get the best lease possible for you. With protections, a fair bonus and a good royalty % (with a no net-back clause). So much needs to be included that usually only a good oil/gas lawyer can know all the details.

Permalink Reply by Darlene Nelson on September 13, 2017 at 1:29am

It was from Chesapeake..doesn't say when the lease was assigned to Utica Management and Ascent..just says from now on all calls should be directed to them..I don't think the lawyer I am hiring has even received the information I just sent him last Wednesday.

.I think they broke the lease when they stopped paying the rental and we were looking into a new lease which is why I was hiring a lawyer to clean this mess up first.

  It's like they were listening to my conversations and all the sudden I get something from them saying hey we still own you.Going to try and call the number Chesapeake gave me for them and call the lawyer.

Permalink Reply by jett on September 13, 2017 at 6:52am

It's not uncommon for leases to be reassigned to another company. Sometimes they're bought out or traded or the company does a reorganization or even a name change.

So the main concern is if you are still legally bound to the old lease.  Hope all works out for you!

Permalink Reply by Darlene Nelson on September 13, 2017 at 8:02am

I talked to someone from Ascent this morning. They said some times those letters go out when activity increases. Or they were just getting around to this since the law suit. Talked to the Lawyer as well and he is working on getting things taken care of.

  I may need the name of a good negotiator when this is done because he will cost me 8000.00.

Permalink Reply by Mike Sero on September 14, 2017 at 6:24am

Ascent, is still held by the original terms of the lease. If you have not been paid on the renewal when it was due, then the lease technically is void. You can put in the courthouse a notice of cancelling lease and then send certified copy to Ascent. If you'd like some help let me know and I can guide you or even contact and help renegotiate a better lease for you.

Permalink Reply by Darlene Nelson on September 14, 2017 at 9:09am

   Thank you...I may take you up on that renegotiating ..I have a lawyer working on cancelling the old lease..but he wants a lot to work a new lease..others here have mention finding a negotiator.

Permalink Reply by Darlene Nelson on September 28, 2017 at 4:40am

Mike Sero..Salt Fork will be sending me a copy of a lease to review..Do you know if they are dependable and honest..and is 5500 an acre with 20% royalty the going rate in Jefferson county Oh.

Permalink Reply by Mike Sero on September 28, 2017 at 10:50am

Salt Fork very rep company - great deal based on the trend in Belmont and Jefferson. If you want me to look it over I'd be happy to.

Permalink Reply by Barry D on September 30, 2017 at 12:43pm

Darlene,

Salt Fork is not an operator. They are a broker, selling the leases they obtain.

In my opinion, you would be further ahead to deal with the operator working in your area and it's contracted Broker..

You mentioned Ascent. The Brokers working for Ascent, to my knowledge, at this time are Halo Land Management and Purple Land Management, not Salt Fork.

Again, in my opinion, why deal with an unassociated middle man?

Permalink Reply by Barry D on September 30, 2017 at 12:38pm

Mike,

Are you an attorney with oil and gas experience?

From your comment "then the lease technically is void" I suspect you are not.

In particular since you probably have not seen the lease Darlene has. Many leases conatain language which states, and I paraphrase, that the lease will not automatically become void.

I suspect that you are a landman with an agenda. If not, my mistake.

If so, you are doing Darlene a disservice.

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