Why the reduced Chesapeake lease offers? Scare tactic or something else?

There are a few reports of landowners who had $5,000 offers on table from Chesapeake that were scrapped and replaced with $2,500 offers. I know the theory that CPKE is moving to "next phase" but reducing lease offers that have been made seeems strange. Do you think it's a scare tactic to get other landowners to sign a crappy lease so they don't completely "miss the boat" for the bonuses? Or do you think CPKE is running into problems, holdout landowners, etc.?? Any opinions on what to do if you haven't already signed? Buckeye mineral? Attorney? Just sit tight and hope for better offers once CPKE really needs properties? (Current offer 2,500 and 12.5%). There is some controversy surrounding the well we're near (Jean Ward) because it's near a city water supply and there's at least one landowner (20+ acres) who has no intention of signing.

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Replies to This Discussion

Permalink Reply by jami d on April 12, 2012 at 2:18pm

we have talked to some neighbors who have done it both ways (land group / lawyer). with very similar results. we haven't done anything yet. i am planning to call ODNR to find out about forced pooling. then probably calling the lawyer. i know DPS will be knocking again soon. will let you know if / when we do something.

Permalink Reply by Kris Smith on April 12, 2012 at 4:03pm

Jami,  I read somewhere ( can't remember where cause I do so much reading about this) that each driller is very limited in the number of force pooled properties allowed per year so it stands to reason that they would only do that as a last resort.

Permalink Reply by jami d on April 13, 2012 at 5:24pm

I haven't heard about any limits. That would be interesting. I assume it varies by state, if it's true. I chatted with a guy at ODNR, and drillers do have to make a good attempt to secure leases before it can get to that point. Then he said it is a costly, time-consuming process. (But drillers have big bucks, so I doubt that would stop them.)

Permalink Reply by Kathleen on April 14, 2012 at 1:00am
Hi,
In this link it doesnt sound like money makes the difference, it's a short read.. I've read in other places a longer version that explains they had to show a fair offer and willingness to work with the landowner and they don't have the same power as a utility company which seems to always have the right of way to do as they please on your land.
http://www.ohiodnr.com/mineral/mandatory_pooling/tabid/19234/Defaul...
Permalink Reply by jami d on April 14, 2012 at 3:16am

That link is what got me stirred up to begin with. That is all "mandatory pooling" and applies only to urban areas (5,000+ people, tiny parcels) according to the guy at ODNR. Like if they were going to put a well in the middle of columbiana. "Unitization" is separate and only for rural areas. It has different rules. I didn't see anything about it on ODNR website. Or not easy to find, anyway. I could only find the "mandatory pooling" link you cited. I had read laws in other states that described their pooling laws, and they had the provisions for requiring driller to make best offer, etc. I was worried that Ohio laws were severely lacking because it is a relatively new process here.

Permalink Reply by Marty Jean Mason-Murray on April 12, 2012 at 10:38am

For anyone interested new Land Group, Atty Ludovici....330-385-3900...I did :)

Permalink Reply by JDM on April 12, 2012 at 11:48pm

what are the details of this new land group?

Permalink Reply by Marty Jean Mason-Murray on April 13, 2012 at 12:45am
He is still in negotiations with them. Give him a call
Permalink Reply by JDM on April 13, 2012 at 1:47am

How long ago did you sign up with him? Is this big land group? Just curious....do you have an email contact or anything for him? Where is your property located?

Permalink Reply by Marty Jean Mason-Murray on April 13, 2012 at 3:41am
just saw him tues...he is working on making it a big group...just a phone number...330 385 3900....we live iin Lisbon
Permalink Reply by JDM on April 13, 2012 at 4:48am

what % does he charge? Is there very many in your group?

Permalink Reply by Marty Jean Mason-Murray on April 13, 2012 at 9:28am
With out looking I believe 3%...and not sure of the total number iin the group...but a good many

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