Replies to This Discussion

Permalink Reply by Brent Laner on October 29, 2010 at 4:25pm

Chesapeake is working around New Phila, My neighbor just signed for $500 an acre. He was told Chesapeake has purchased all the existing leases in Tusc County....yeah right. He only has 20 acres and really isn't aware of the system and how it works.

Permalink Reply by Richard Clark on October 30, 2010 at 12:24am

Brent, is the $500 for the primary term of 5 years which is $125.00 per year or is the $500.00 per year for 5 years with an option for 5 more? Are they still at 12 1/2% on the royalty?

Permalink Reply by Brent Laner on October 30, 2010 at 4:33am

What I could understand from him, he wasn't real sure on some things, he is receiving a one time payment of $10,000 for 5 years, he thought the royalty was 12.5%.

Permalink Reply by Richard Clark on October 30, 2010 at 7:10am

This is what I have found to be the case with most fo their leases. I have herd Ches is going to send in 300 land agents to work about 9 counties in eastern Ohio starting next year. So far just hearsay, no proof.

Permalink Reply by Brent Laner on October 30, 2010 at 9:59am

My neighbor was told they have one in each township now.

Permalink Reply by David Mohn on October 30, 2010 at 12:16pm

Richard, do you know what 9 counties in eastern Ohio that are going to concentrate on?

Permalink Reply by Belmont Terrier on October 30, 2010 at 2:23pm

I contacted Kenyon Energy last week and was told that they had been contracted by Chesapeake as leasing agents. My property is in Belmont county and I am waiting for the area agent to call back to review what they might offer. I have received many lease offers in the last few years and all of them have been to low to consider.

Permalink Reply by Bruno Tabacchi on October 31, 2010 at 5:05pm

We are also in Belmont County with mineral rights to 82 acres. We've also been approached with lowball offers. Do know of any land or mineral rights owners groups that may be forming?

Permalink Reply by Richard Clark on October 30, 2010 at 2:28pm

Trumbull, Manhoning, Stark, Columbia, Carroll, Jefferson, Harrison, Belmont, Guernsey, Noble Monroe, Washington and maybe a few bordering counties west.
This is only hear say going around so.......we will have to see if it's for real.

Permalink Reply by Richard Clark on November 1, 2010 at 1:08am

Vince, have you thought about posting..........How many ac, terms in years and how much? See who accepts! This could save you time and aggravation.

Permalink Reply by Belmont Terrier on November 2, 2010 at 3:18pm

Richard, I agree with you on the thought, but have been watching the lowball offers roll in over the last few years and just trying to get educated. We made some adjustments to a lease offer 5 years ago when EOG resurces was signing up all the neighbors and when we put the ammended lease in front of them they told us they were done signing in the area.

I am pleased that we did not sign their lease. My brother and I have 730 acres and a good friend with another 40 adjoining ours. Unfortunately, we aquired 375 of the acres from a neighbor who signed the lease and then sold to us. So we inherited a not so friendly lease.

I spoke with the ODNR yesterday and reviewed the well data for the wells drilled in washington township and according to the ODNR the horizontal well 1 mile south of our property is producing ''wonderfully'' for Ohio shale.

That is why I had contacted Chesapeake directly, and then Kenyon. I have also heard that Sierra might be leasing in the area.

Our professional forester lives in Columbiana county and has family property up there. Both the ODNR and our forester reported first hand lease knowledge with bonus payments of $2,000 and a royalty of 15%.

It seems that the larger amounts are slowly moving down the river to our area, as the last lease offer we received was for $400 per acre. We are just like everyone else in that we care about our property and want a lease that protects our land and also offers a fair bonus and royalty.

Just watching the show unfold at this point.

Permalink Reply by Richard Clark on November 2, 2010 at 11:21pm

Vince, I see most of the post here reflect the bonus payment $$ and royalty% but not what the terms are.
Is the $2 grand you are talking about for the primary term of 5 years which = $400.00 per yr for the 5 yr paid up front or is it $10,000.00 for the first 5 yr which is 5 yrs at the 2 grand? With their option to renew the lease for another 5 years, does the 2nd term money change?
This is by far.........the highest offer I have heard of in Blmt county.

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