Chesapeake in Jefferson County, Ohio, Offering One-Year Lease Renewal

Our five-year lease with Chesapeake is due to expire in June.  Chesapeake has the option to renew automatically for three years by repaying landowners in our group the signing bonus (the exact amount that covered the first five years of the lease).  One of the members of our group (not us) has been approached by Chesapeake to renew for one year only, and I am assuming it's at 1/3 the price/payment.  Has anyone else in Jefferson County, Ohio, been approached and offered the same deal?  I am wondering whether Chesapeake could be doing this because they don't anticipate getting back the results of the seismic survey in time, that is, before the majority of their local leases expire.  Please share any thoughts or additional info about renewal offers or seismic survey results in Jefferson County that you may have.  Thanks.

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Permalink Reply by David Allen Lilly on April 4, 2016 at 5:05am

I might be interested in letting the lease expire if they don't renew and wait for the market to come back, which it will.

Permalink Reply by JWE on April 4, 2016 at 5:44am

This is my strategy, now that my lease has expired without renewal payment or activity, and wait for a future offer.  But I wish to make a recording of the fact the original lease has expired for public purposes which I am told must be done by Chesapeake since their lease expired without payment for extension or activity.  To my knowledge, there has been no activity in Wells Township to "spike" the original leases. 

The fact that Chesapeake must sign a release is contrary to my logic and thinking but I have initiated the request from Chesapeake per legal counsel  advice .  Chesapeake acknowledged receipt of my request almost two months back but have not provided a release. 

Are there others in Wells Township who worked with DPS Penn five year back who have heard nothing???  What actions are you taking, if any???  Has Chesapeake provided Lease Releases to anyone???

Permalink Reply by Dee on April 4, 2016 at 10:15am

Does anyone know if the leases in Jefferson County Ohio are part of the properties that Chesapeake mortgaged? I'm just curious is they have to keep some of the leases active. Regarding our lease: We are expiring mid April and have not heard anything. I have talked with the original landman and was told that they are only going to renew some of the Jefferson County leases. We own our minerals in an llc company and we have decided that if they offer we will only accept the 5 year bonus payment, or 5 - 1 year payments with the remainder payable / due when drilling starts. Other than that we will let the lease expire and wait out the market.

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