Chevron Greene County PA-I have a lease expiring in April. They are making a lame offer to release.

 112 Acres in Greene County. Original Three year lease for $3250 per acre 18%. Lease expires in April 2013.

They are trying to release at $750 per acre for 5 years additional. Does anyone have any information on what is going on with Chevron in Greene County. I have been jerked around by Chevron since July. Promises of development, permitting etc etc. I am not please with their professionalism nor forthright communication. Of course they are saying that they are going to let the primary term expire if we do not agree to something. I believe I have them back to $1500 per acre for 5 years with all other terms the same. Any info out there on their development plans. Property is almost directly south by a few miles from the Cooper Well that EQT has. At this point I am inclined to let the lease expire. Any info would be appreciated.

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Permalink Reply by Jim Litwinowicz on December 15, 2012 at 5:35am

Not enough info to help much. Is Chevron the only player in Greene and/or your township? How many people around you have leases about to expire? If so what are they being offered and by whom? Have you reached out to any other companies? Have you talked to your neighbors?

I would talk to as many neighbors as possible. Find as many people that are not leased or about to expire and work together. Then reach out to all the companies active within 20 miles.  Working together will be much better than trying to go it alone. Maybe Chevron will give better offers when they realize you are all working together.

Permalink Reply by James T Monyak on December 15, 2012 at 1:12pm

You have plenty of acres I would not lease for lease than $5k signing bonus and 18% royalty.  

Permalink Reply by rmc on December 15, 2012 at 1:29pm
Hello Iam in Greene County as well and leased to Chevron although our lease doesn't expire for another two years.
I would be very interested in knowing if you end up dealing with Chevron again.
Permalink Reply by Henry Edwards on December 16, 2012 at 12:53am

I agree which is basically what the first lease was for. They are really hard to deal with. They say they have no immediate plans for Greene County which should answer rmc response also. What immediate means is to be determined.  They were working on (and Atlas before them) acquiring all the leases around our property. Most of those properties were held by smaller companies. The only other companies I see active nearby is EQT which has the Cooper Well and one other smaller company very close . I am in Perry Township near Mt Morris.

Permalink Reply by Lance Nimmo on December 17, 2012 at 2:09am

$5k bonus in a dry area? Get realistic....

Permalink Reply by Henry Edwards on December 17, 2012 at 4:05am

Well Lance we did get $3250 for three years which is like $5400 for 5 only three years ago. I know of others that got more.

Permalink Reply by Lance Nimmo on December 17, 2012 at 4:13am

Henry, gas was worth over $6.00 3 years ago. It's only worth a little over half that now. Things have changed....

Permalink Reply by craig on December 17, 2012 at 7:49am

Things really haven't changed much because the companies aren't thinking short term, they are thinking long term. You should do the same.... either don't re-lease right now, or stick to your guns on the $$'s. My opinion only.

Permalink Reply by James McDowell on December 16, 2012 at 3:37am

What Township in Greene?

Permalink Reply by Henry Edwards on December 17, 2012 at 12:57am

Perry

Permalink Reply by Frank Nesmith on December 17, 2012 at 12:27am

Let it expire! If they want it bad enough, they will pay. With gas so low, they may not come back and fight for it, but at least that frees you to negotiate for newer and better terms.

Permalink Reply by Schnoozie on December 17, 2012 at 3:13am

Have you contacted any other drillers that are active in the area? If so what did they say?

This "lame" offer as you put it may be the going rate, for your area, or not.

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