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Permalink Reply by Sparky on January 1, 2015 at 6:25am

So what does this mean for those who entered into leases with Chesapeake in 2012? Will the terms of the leases change? Will the leases still expire in 2017? Thank you to anyone who can provide some information.

Permalink Reply by Todd on January 1, 2015 at 7:11am

Sparky,
What it means is Chesapeake is history. Your leases have been assigned to Southwestern Energy at the Hancock County Courthouse. Nothing changes the terms of your existing lease. Hopefully, it means that Southwestern will drill multiple wells per pad and actually develop the area, whereas Chesapeake was just holding the the area waiting for a buyer. If they drill a well and create a unit with your property in it prior to May 2017, then your lease will not expire but you would receive a steady royalty stream of income instead.