Unit Size

We are leased with Chesapeake. I have heard that Chesapeake wants a 640-1280 acre drilling unit.  I have also heard that Chesapeake is re-negotiating some leases with 160 acre unit sizes.

Will Chesapeake set up a drilling pad on a smaller unit or insist on a 640-1280 unit size?  Has anyone been approached to change their lease to a larger unit?

We have a 240 acre family farm and 4 years ago I had included in the addendum of our lease that this farm of 240 acres is a unit and could not be changed without written consent from all of the owners.  At the time I did not understand horizontal drilling and the Mason Dixon land agent could not provide documentation to the need for a larger unit size.

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Replies to This Discussion

Permalink Reply by BuckeyeMom on September 14, 2011 at 11:03pm

We have a farm in Carroll County, and our lease said 640 acres is a unit.  We were told they would go around us if we did NOT sign the addendum that was open ended as to the unit size, meaning it could be 1000, 10,000, or whatever they wanted it to be.   We tried to negotiate larger royalties, like the new leases are getting, and they said NO.  Then they came back saying 1,000 acres.... But, before they brought the paperwork around for us to sign, something happened, and the unit size was declared to stay at 640 for everyone.  They said there were a few landowners who were at a lesser acreage and they did increase their unit size to 640 also, everyone else stayed the same.    They pushed pretty hard over a month or so to get the neighbors to sign and would never meet with more than one family at a time.  We would hear from them, then not again for a few weeks.  They did this to all units, you are not alone.   Ultimately the unit size is 457 acres, a far cry from the 1000 or 1250, or unlimited!!! Another well has a similar sized unit, and one is much smaller.   You can look up the unit sizes for local wells on the landaccess.com site.  We all need to be educated.  Do as much research as you can!   The ODNR website has alot of information too about local well status and permits, etc.    Hope this helps.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on September 20, 2011 at 2:34pm

CHK has made some units with far less than 640. They have one in Jefferson that is barely 150 acres. If they want a bigger unti they'll need to amend your lease which means you can ask for more money.  If they contact you you should get an attorney.  I know of one who deals with them quite a bit.  I'd be happy to share if you send me a private message.

Permalink Reply by Oscar A Addis Jr. on September 22, 2011 at 12:42am

Thanks for you help.  You can e-mail me at addis@cantonlocal.org.

 

Oz

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