Replies to This Discussion

Permalink Reply by craig on November 21, 2012 at 9:32pm

The small acreage you have available to lease will be the barrier to bargaining for what you want. I'd drop the no surface usage and instead ask for an addendum that restricts pipelines or access roads to your satisfaction, as that is what most likely could be put on your property. There really isn't much else they can do on 2.75 acres. 

They have gone around folks, but i'm not sure how that is going to work out as they drill more wells on the same pads. 

Just 2 months ago a neighbor renewed his crappy old lease with CHK for $1000/acre. I would have told CHK, I might take it, with the new lease I want. This neighbor has 35 acres so he does have some bargaining power which he didn't use. 

At this point I don't know what to tell you to do. CHK is low on funds. You have a small parcel. We don't know what is really under us, yet. CHK is holding most of the cards in your case, so this is basically a crap shoot.... My lease runs out in June 2013, I don't know what I'm gonna do either. 

My brother's lease runs out in Jan, on around 80 acres. I"ll post what they offer him to re-lease....if they offer him anything at all. 

I'm leaning to the ole saying  "Time is on my side". However, if your financial situation dictates leasing, then that's what you do.

Good Luck!

Permalink Reply by Jason N on November 22, 2012 at 7:50am

Play your cards right on this one. I don't know what your specific parcel looks like in the big picture but if it were me I would not take that offer. They're good at playing mind games with people. They offered me 300/acre and 12.5% 3 years ago.  I just signed for $3,150 and 17%. in Hanover Twp.  I know it's a gamble but look at the parcels and communitate with neighbors. I was driving around last week and saw that Mark West is building another processing plant in Washington county along the WV border and there are pipelines going in EVERYWHERE down there.  It's only a matter of time before it gets here. They would not dump this kind of money into pipelines and processing if there wasn't alot of gas and oil under our feet.  Good luck.

Permalink Reply by craig on November 22, 2012 at 8:44pm

I concur with your statements, especially about what they are spending and where that is going to lead us. December is the month Shell has to announce if they are going to exercise their option to buy the Horsehead property, which will really start the gears turning here.

They will be back when your parcel needs to fit in their plans, which it hopefully will. In the meantime they will be low balling folks trying to get the best deals they can, with some landmen using whatever tactics it takes.

Permalink Reply by Gary on November 24, 2012 at 3:27pm

Jason N what part of Hanover are you in?..and who did you sign with?