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
Greg, sorry it looks like I'm replying to you but I'm trying to keep this post in order..
not sure where is SHortcreek TWP your prop is located but keep an eye on wheeling twp, Belmont county not just Harrison. Watch for new permits and/or all activity in Belmont... There are wells in Belmont that the horizontals will extend into Harrison...1 example the truchan well has laterals stretching out north west almost reaching my prop border. Odnr shows some laterals in construction, producing (good gas #'s) and permitted well. So activity in shortcreek may look slow but activity inbelmont indicates that it's moving our direction from the south. Like to get confirmation this yr that the nat gas power plant proposal in Belmont county comes to full fruition...or better yet, instead on PTT chemical (foreign co.) love to see ALL American company build and run that plant!
Chris, Sorry for the frustration you experienced recently when trying to log onto this site. I and Others are glad you came back!
The challenges that landowners face when dealing with O&G companies is oft time daunting. However, I consider the rewards to be worth the effort. Many times it is wise to seek help.
You are correct that very little goes 100% as planned. All of my original leasing contacts are no longer with the company. Indeed, the former CEO of Chesapeake is no longer above ground.
I personally will not sell any of my mineral rights. Much of the infrastructure is now in place for the US to increase the export of energy related products. I also believe we will experience double digit inflation within the next 5 years. The value of minerals still under ground will increase in value at or above the rate of inflation. STAY STRONG!
Thank you Al, Greg and so many others for your positive contributions on this site in terms posting your experiences, opinions and by helping other members & non members. I have been on the sidelines on GMS for awhile as a non member. I feel somewhat obligated to chip in on this site as others have helped so many of us gain tangible knowledge on O&G (with much more to learn).
I wish luck to us all.
Has anyone been approached about amending the lease extension from 1-payment for 5-years to 5 payments over the five years. Instead of paying $5,000 to extend for 5-years, they want to pay $1,000 per year for the next 5-years and if they drill before term is up then they don't owe you the remaining payments. Seems like a bad deal, but wondered what others were seeing and how they resolved, if they did.
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.