Same lease offer from Chief

Myself and some neighbors got the same lease option from Chief about 2 months ago. $50.00 now and $1450.00 for a 5 year period. We have a small group of land owners in Conemaugh Twp. that have not leased yet and will not go along with a lease option. We have agreed to the seismic testing that was suppoded to take place last month but the Landman told me last week it was delayed due to weather and it should start the middle of June.
My question is, in the past, I was understanding that the price offer for leases were per year not over a 5 year period like Chief is offering. Does anyone know if the nice leases in Washington, Green, Fayette and Westmorland counties are per year prices or for the 5 year term? I have been seeing many $3500.00 per ac and $4500.00 per ac leases being offered by Range but what is it? per year or over the 5 year. Its only $300.00 per ac what Chief is offering us. Our group would like to lease but not with the prices Chief is offering and we are not willing for Chief to lock our property up for 18 months and not have any chance of leasing to a company with a real contract offer at a fair price.
Any other Conemaugh Twp land owners out there that are not leased yet? Maybe we could all join together !!

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Replies to This Discussion

Permalink Reply by Michael E. Ondesko on May 20, 2011 at 6:23am
Mike I just got my check for the extension of my lease in Twp. Leased in Sept. 2008 for 3 yrs. had to pay up to date by June 18 this year.for another 3 yrs per contract 6 yrs total. only $250.00 per acre. I did not read fine print about extension( my fault only) but 2008 prices for gas coming down etc. I would think the area is at least going to have a try at drilling with chief selling this area to Chevron maybe things will turn around.
Permalink Reply by Mike Spengler on May 20, 2011 at 1:40pm

Mike, Was the $250.00 per acre per year or over the 3 year?   Yes, most of the neighbors signed the same lease around the same time you did. They signed with Courtney.

 I heard that Chief sold alot of their leases to Chevron except Somerset county they kept, maybe I got it backwards. I guess we will find out more after the siesmic testing.      

Permalink Reply by Michael E. Ondesko on May 21, 2011 at 2:33am
Mike when I talked to Courtney he stated his farm was also sold IE Lease in Somerset  near Hidden Valley Resort and yes that was 250.00 per acre for 3 yrs.  IE Actual $750.00 per acre

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