Leases are beginning to expire. Who is getting renewed?

We have two leases north WVA-Mon County and on in Perry Township Greene County. One lease expired last year and was not renewed. The other is a long term lease going back to the 1970's-both with EQT. The Greene county lease is with Atlas(Chevron) and is expiring 4/2013. My question is to those with leases coming up-Do you expect them to be renewed or for those who have had leases expire-I would like to see some comments. Terms on our leases-bonus payment and term 3 years were excellent.  I don't see much activity in resigning. The three properties are combined 250 acres-70-70-110

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Permalink Reply by Michael Moore on July 31, 2012 at 11:08am

Our lease expires the first of the year, and Cabot Oil has already told us they are not re-leasing our land

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on July 31, 2012 at 12:11pm

Michael: Where is your land located ?

Permalink Reply by Michael Moore on July 31, 2012 at 12:24pm

Susquahanna County, in Fairdale, Pa

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on July 31, 2012 at 12:30pm

Thanks Michael. Hopefully things will turn around there soon. I am in Lawrence County near the Beaver County line and am not quite one year into my five year lease with Shell. I have my fingers crossed. Best of luck to you.

Permalink Reply by Jim Litwinowicz on August 24, 2012 at 2:06am

Here's one advantage of leasing in a large group; When your lease expires, there will be thousands of other landowners with tens of thousands of acres all expiring at the same time. IMO, this is a huge advantage when trying to negotiate a new lease. The O & G's will have to make good offers or loose vast acreage to drill and to install ROWs.

If you signed an individual lease, you are on your own and the companies will give you a low ball offer as they will have lots of other land to develop. Its easier for them to ignore or wait out an individual landowner than it would be to wait out thousands.

Plus, if they try to wait out a large tract of 20,000 acres or more, they are taking the risk that another company will move into the area, especially the wells in the vicinity are good producers. If they are the dominate player and a single landowner is up for renewal, they know that no other company will make an offer so they can just low ball the landowner. 

Permalink Reply by Michael Moore on August 24, 2012 at 5:23am

How does one get into a large leasing group?

Permalink Reply by Jim Litwinowicz on August 24, 2012 at 8:22am

Talk to lots of neighbors and see what they are doing. If no group exists in your area then start one.

If most of the land, like 80% or more,  is already under lease then it may be too late to start a group.

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