Bought a cabin in Tioga and the OGM's were transferred to me at the sale. I did get a confirmation letter from the gas company with them updating their records of ownership and they sent a letter of intent to renew the lease. I am just hoping they renew the lease at the amount the last 5 year lease was or more. I was told I should hear something by June/July, but haven't heard anything. Anybody else experiencing this or did you renew your lease lately?
Call the company who holds your lease.
"I am just hoping they renew the lease at the amount the last 5 year lease was or more."
Michael, Don't accept a check for lease renewal if it isn't the amount stated in the lease for the 2nd Term. That's one item in the lease that companies can't ignore and force you to remain in the lease, unless you make the mistake of cashing a smaller payment.
What happens if you have a VERY user friendly lease in it's second term set to expire in 3 yrss
Do you think Shell would do admenment for 3rd term of five yrs with original terms......?
I've never heard of a company amending a lease extension term beyond the 3-5 year extension. If you get the the expiration of the current lease I would try to start and end my negotiations by saying give me the lease I previously had. If it is within the area of the currently offered numbers they would save a lot of time for themselves and you by drawing it up the same. Things have changed over the past 8 years. Gas prices are relatively low still but in a good portion of Tioga the Utica is proving to be a second and even more lucrative gas play. Still the cost to drill it is more than double the cost to drill the Marcellus, which doesn't help anyone really.
Thanks for your input