What happens after 5 years

Hello!

I am in Bradford county and signed with Chesapeake.  I signed a deal almost 3 years ago for a 5 year and 5 year extention.  I received the sign bonus. Now that I am coming up on the 3 year mark I am a little foggy on what happens when the 5 years comes up.  Do you get the sign up bonus again if nothing has happened on my land or am not in a pool?  My water has been tested over the winter time, but nothing has happened since.  Just trying to see if I would be getting the bonus again if nothing has happened in the 5 years.  Can anyone answer this?  Thanks so much.

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Permalink Reply by Billy Park Whyde on April 24, 2012 at 9:18am

You will need to look at the lease you signed, that will be the biggest determining factor. 

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on April 24, 2012 at 10:07am

Hi Jen...

If you go to www.landex.com for the public records recorded for your property and check and see if any filings have been done to organize a unit.   Our property was included in a unit back in 2010 and we were not notified and at the end of 2011 I discoverd that there were two units formed...which in our contract if they included a few acres then all the acres are subject to the lease whethr in the unit or not.   It appears that Chesapeake does a better job of notifying their lessors than others do....but check there first as if any of your land is in a unit then a well pad has been drilled somewhere.   The unit sizes vary...but a large unit of over 1100acres could be formed in your area as well.  

Permalink Reply by Jen Jones on April 25, 2012 at 1:49pm

Thanks for the information.  We are not in a pool as of yet.

Permalink Reply by Kathleen on April 24, 2012 at 1:03pm
Hi
Did you get a water test notice that they wanted to be good neighbors and test your water? If so did it list a well? Even though it was tested months ago and you did not see a pad going up yet doesn't mean one isnt coming sometime soon. On our water test papers there was a well listed on one of the pages, on the upper left corner. You may have over looked it. I don't have the number anymore since it went back with the paper work but Chesapeake has an 877 number for customer service. Give them a call and have your lease ID number (I have a lease but I never saw an ID number) or your parcel number handy. Explain you got water test papers and you would like to know if it was because you are close to a well or are you in it. These people are very friendly and one told me so many people yell at them they are happy to help nice people. When I called and asked thoses questions 1st for myself than another call back for a friend when they got there water test papers (they didn't notice the well name listed either) they gave me a ballpark of how many arcres were in and the estimated drill date. Our drill date is January 2nd of 2013 and we got our water papers about two weeks ago. I'm betting you are in a well unit and this will nagate the 5 year extension. I hope you are in a well. If you can't find that customer service number friend me and I'll try to find it. Please post back if you call. So far everyone I know that got water testing papers is in a well unit. Since our date is so far away it's called a proposed well and not listed on the ODNR site yet.
If they say yes ask them for the name of the well than go to the county auditors office online site (im in columbiana county and we have that) and put that name in the online property search. You will see a neighbors name come up than take a drive to that property and see if you see a bunch of stakes, not one or two, a bunch. If you find this than you found were the pad will be.
Were are you located?
Permalink Reply by Jen Jones on April 25, 2012 at 1:51pm

Thanks for all the information.  Called Chesapeake and the lady said we are not in a unit that she can see and transfered us to someone that deals with our area.  Left a message for that lady and am awaiting a phone a call.  Best of luck to you with your well!  Thanks again

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on April 24, 2012 at 1:19pm

not that they would forget you...but if you call them and they had forgotten you and your land...then you will remind them.   You might want to review your contract thoroughly esp. the lease extension clause info and see if you are in a unit first.   Cause if they do forget you and don't rush over to just do something to extend the lease then you might be able to get the new bonus amounts.    check landex first...they handle most pa. counties records.   some people got a road put in on the last day or tried to in the last few minutes of the day.. of the lease just to extend the lease...another company though.

Permalink Reply by Chartist on April 24, 2012 at 2:00pm

You'll  get another sign on bonus if they don't start drilling before the initial 5 year period ends...I signed with Chief for 3 years then received another sign on bonus when they opted to renew for another 3 years....I am coming up on the end of that lease, now assigned to Chevron. 

Permalink Reply by Finnbear on April 25, 2012 at 3:18am

Not necessarily. Look very carefully at your lease. Also read up on lease extensions here on gomarcellusshale.com. Some landowners are getting a big surprise after 5 years and it isn't another signing bonus.

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on April 25, 2012 at 2:32pm

finnbear is correct jen..

take a look at this discussion about the 'extension of term clause' so view your clauses first::

http://gomarcellusshale.com/forum/topics/extension-of-term-clause

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