Does anyone have information relative to whether Chessapeake will ever drill a well in Allegheny County, PA?
I am in the 5th year of my 5-year land-lease with them on 60 acres and have heard not one word. I'm located out on the eastern edge of the county very near Westmoreland County, and I have heard about quite a bit of activity not far from me in that county.
I hope you received bonus money at least.
Since you are in the 5th year and your lease states no information for auto-renewal, then you are open for business once again. Could be a blessing since CHK is sending their rigs West of you.
Thanks for reply. Actually if I remember correctly, my lease does give Chessapeake the "right" to renew the lease ... by paying me the same per acre lease payment as at the outset. However, unless I hear from them sometime in the next few months, I will be shopping for someone else who may be interested in a fresh lease on my acres. The issue I am concerned about is whether some of the "environmental" folk have succeeded in making it difficult to drill in Allegheny County, although I have no direct information to document this rumor. Would love to hear any well based info from anyone in the know.
Earl, if you want to know who is leasing around you talk to as man people the area and ask. Go to you court house or their website to see who is leased to who. Go to the township building as they are usually on top of these things. Check out Westmoreland Co also since you are "on the edge."
I'm going to guess that Chesapeake will renew with little intensions to drill. They just renewed acreage in Preston County, WV and I know for a fact that they won't touch it for years.
On the other hand Chevron is really developing Fayette and Westmoreland so maybe in a few years infrastructure will move your way. These companies like to keep their inventory of land as full as they can for future loans and investments... which will probably be sunk into a more profitable area.
Jason; that works out to $53,500/acre. I think its off by a decimal point. And the airport is the west part of the county whereas Earl's parcel is in the east of the county.
John; CHK may or may not utilize the renewal option. Depends on their local plans. They may make a lower offer than the existing lease at which point Earl would be free to take offers from other companies. He should start looking at his options now by finding out which other companies are in the area and what they are offering. And if he finds a lot of other people not leased or with leases about to expire, try to get them to all work together as a group. There is power in numbers.