Early renewal of 5 year lease with Shell
4 years ago I signed a lease with East Resources. Recently I was contacted by Shell with a request to renew the lease a year early for half the amount I was paid in 2010. There was also a business card in my door from another landman (no company listed). I am thinking I probably need to have a lawyer look at both leases to see what is different in the second lease that they are so anxious to renew. The amount of money won't make me rich but it does help with home maintenance. I noticed one difference in the leases - the second one says in and under the land...Anyone have words of wisdom?
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Replies to This Discussion
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Permalink Reply by Keith Mauck (Site Publisher) on
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Recategorized this to the proper category...
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Permalink Reply by S S C on
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Their first offer is not their best offer. Take your time and see a good o&g lawyer.
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Permalink Reply by Tim Tarr on
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County and Township ??? The more acres the better the leverage. Talk to some neighbors and see if their lease is up too.
Now I'll say if it was East Resources you signed with it was probably a sub-par Lease. I'd bet your can do much better than that previous lease.
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Permalink Reply by Peggy A Murray on
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Tioga County, rural Tioga township- only 9+ acres - my lease is not up until September 2015 but the offer is to sign with right now and the check is already written
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Permalink Reply by Jim Litwinowicz on
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Check or bank draft? Big difference.
Talk to neighbors, see when their leases expire, ask what their offers are, if any, Try to get as many as possible to work together That will give you leverage and you can all pool resources to hire a good attorney. Maybe have other landowners share cost based on acreage.
Good luck
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Permalink Reply by Peggy A Murray on
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Good question re check or bank draft...Thank you Keith, SSC, Tim and Jim - you have given me some direction..
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Permalink Reply by Jim Litwinowicz on
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A check means you can cash it right away. When they give you a bank draft, they will not fund it until they do all title work and they also have the right to reject your parcel, sometimes after six months or more of tying up your rights.
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Permalink Reply by Peggy A Murray on
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Thank you...it was a check then
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Permalink Reply by Janice L. Hancharick on
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Leasing is heating up in Tioga and Potter. Storage fields in the area are expanding. There's a lot you're not aware of yet. Hold up on the signing. WHATEVER you're being offered now ... you CAN do better.
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So how would the expansion of any of the existing storage fields in the area (I assume you're talking about Beech Hill) positively impact this woman's opportunity to lease her 9 acres in central Tioga County?
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Permalink Reply by Peggy A Murray on
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I am in Northern Tioga County - 4 miles from the NY line - there are two new Utica Shale wells, Gee and Neal in the area, possibly 10 to 20 miles from my location. It was right after I heard about those wells that I was approached first. - I am not familiar with where the storage fields are here.
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If the best offer is 300/5yr,1000/10yr than give yourself that year. I believe we will learn a lot in the next year pertaining to the Utica.
Here is a the storage fields in your area, there are no expansions plans here are far as I know.
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Tioga Storage Field15072014.pdf, 668 KB
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