Replies to This Discussion

Permalink Reply by Nelson Roe on August 17, 2011 at 7:36am

From the discussions I have heard & been a part of, it seems that it all depends on how many acres you have to offer.  The drilling companies like to deal with larger blocks of acreage.  So, if you hold a considerable amount of acreage, then dealing direct with Chesapeke may not be too bad for you.  However if you are a small landowner, then the company probably would not give you much consideration in trying to negotiate the more landowner friendly terms that the group negotiations are usually able to provide.  I have seen a couple of leases from people who dealt directly with an O&G company & it was basically the standard oil & gas lease with a limited amount of addendums that offered only a few of the protections that seem to be available when negotiating with a larger group.  Personally, I would not touch those leases with a 10 foot pole from the 2 or 3 examples that I have saw from people who dealt direct.  But, then again, I also live on my property & plan on remaining there for many years to come if at all possible.  It is all dependent on how you use your land & what you feel will work best for your individual situation.  For me, I believe that the group setting is a better choice.

Permalink Reply by Ruth Dickson on August 17, 2011 at 1:37pm

Thank you for your reply and advice concerning this issue.   Mrs D.

 

Permalink Reply by JK on August 20, 2011 at 1:46pm

Years ago people mostly did do their own deals and were satisfied with the results.

But NOW, we all need to be in charge of our deals AND get a good O&G attorney to make sure we are protected in all ways.  From everything I have read from THIS site (thank you Keith!), there are so many ways for us to be taken advantage of.  It's up to us all to make sure we are making the smartest and best decisions for our highest advantage.  We have been forewarned for sure...

Permalink Reply by Mark Allen on August 17, 2011 at 7:44am

Is Chesepeake leasing in Guernsey county?

Permalink Reply by Nelson Roe on August 17, 2011 at 7:52am

Yes, I have personally saw a direct lease with CHK from at least one person in Guernsey (around the Old Washington area).  And I believe that my neighbor on my NE corner of the property also leased with them directly.  I have not had a chance to talk to him to confirm though.

Permalink Reply by Shower Bath on August 17, 2011 at 8:03am

Any landowner trying to negotiate a lease directly with any landman or O&G company had better get the best O&G attorney in the area and be prepared to pay the legal bill. Otherwise, you are going up against professionals, backed by a vast legal group. They can make a lease sound appealing and later the landowner discovers they have no real protections in the lease addendums.

If you are a small fish, it's better to swim with the school. Good Luck.

 

Randy