Chesapeake fails to make lease payment extension due April 15, 2016 on ALOV contract dated April 15, 2011

We have 140 acres in Jefferson County Knox and Island Creek Twps. with Chespeake lease thru ALOV dated April 15, 2011.  Payment on three year extension was due April 15, 2016 but no payment has been made.  I think that they are playing games to delay until they get the seismic results from test run earlier this year.  For all intents and purposes the lease has been abrogated.  For you who are interested you can go through a procedure to record the broken lease.  Go to this web page for instructions:  http://www.crainscleveland.com/article/20150831/BLOGS05/150839981/o...

If Chesapeake is using our leases for collateral the loaning party should know that the leases are no longer valid which might bring them to the bargaining table.   

Views: 3703

▶ Reply to This

Replies to This Discussion

Permalink Reply by Barry D on April 18, 2016 at 5:31am

It is important to note that a lease may not be null and void just because the company has not taken action to extend the lease.

This article lays out the necessary action landowners must take.I would caution that although the process seems simple the rules and regs with regard to this process are strict. It might be a good idea to have legal assistance.

Permalink Reply by Robert J. Smith on April 18, 2016 at 5:33am

You gotta be kidding Barry.  

Permalink Reply by Barry D on April 18, 2016 at 7:28am

kidding how>

Permalink Reply by Robert J. Smith on April 19, 2016 at 3:51am

Barry - Most, if not all leaseholders should be able to file what is needed to clear the lease at the courthouse. Running to an attorney every time something is fairly plain and simple is ridiculous. I have an ALOV lease and what it says mirrors what the ORC says. People should not be fearful of taking their own action when something like clearing the lease is so cut and dry, especially if no drilling has been done and the property has not been unitized. In our case I called Chesapeake this morning and was advised that they dropped the lease on our 140 acres in Jefferson County, Ohio. I asked when they would send out the document to file at the courthouse and the guy told me that it it scheduled quarterly but he does not know when it will be forthcoming.  You can probably wait til hell freezes over. We will have a letter going to Chesapeake early next week to start the process.  You can wait a long time for Chesapeake to take action and you can spend money on an attorney when you don't need one in most cases.  

 

Permalink Reply by wandering juju on May 9, 2016 at 3:59pm

NO Doubt Robert.. frkn attorneys all took tooo much from land owners already.. 

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on April 19, 2016 at 1:54pm

Robert,

     I read a post at 5pm by a CHK leased individual who said he called CHK and they said they would not extend his lease and a Release would be in the mail.

The persons post is now pulled. Could someone be protecting CHK to prevent a mass of landowners from requesting a Release?   More than likely.

I called my contacts and made sure they got their request in, just in case this is for the first 100 landowners that call in.

You know the plan is to flip all of those expired leases, so why sit around and be committed to a 2nd term when the lease was violated for the first 5 years and is about to violated even after expiration.

Oh, and some one called me names.

Permalink Reply by tacoma7583 on April 19, 2016 at 11:10pm

This was something I noticed on a non-alov lease from my neighborhood.  Lease set to expire on 8/11 of last year,  landowner files non-compliance on 8/20 last year in  recorders office.  CHK records lease ext dated 8/31 of last year, release of lease filed finally in November of last year. I think the terms of the original lease was 500 per acre. 

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on April 20, 2016 at 1:54am

Oil and Gas companies traditionally try to hold leases even when expired, it's a National Past Time for them, and O&G companies have done this since the first lease was signed.

I've seen pictures of wells that haven't produced for decades but the O&G companies turns in production numbers to the state in order to hold the landowner's vertical well lease by production.

O&G companies have relied on landowners being uninformed and too busy to read their leases. You can guess where the various governments stood on theft from landowners across the century and the reason they don't get involved is always the same. It looks like this: $$$$$. The Root Of All Royalty Underpayment.

Permalink Reply by Robert J. Smith on April 20, 2016 at 4:56am

That is why you have to get the letter out to Chesapeake NOW that they are not in compliance with the lease because no lease extension payment was made, there are no wells on the property and the property has not been unitized with the unit having a well.  By NOW I mean the 45 day waiting period starts the day they receive your letter and if they do not respond within 45 days you can file your own document at the recorder's office to terminate the lease.  Google ORC 5301.332 for all kind of information on terminating the lease.  My ALOV contract says that Chesapeake will send release within 30 days but I doubt that they will from talking from Chesapeake who alluded to some quarterly or semi annual schedule.  In the meantime you sit and nothing happens.  Need to clear the lease.  I really think that Chesapeake wants you to do nothing so that they can keep their options open because the lease has never been legally cancelled. Send the letter certified or registered mail, wait 45 days , and file the release at the courthouse. Keep a copy of everything including the postal receipts.     

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on April 23, 2016 at 9:02am

Robert your post hit the nail on the head. Those that wait and do nothing will have their leases flipped and will wonder how that happened when it had expired without payment.

The problem is we live in a dual world. Ours and the O&G world. 

We obey laws and follow contracts to the letter. When the world of Oil & Gas came along, none of us realized the laws don't apply to them, so they don't need to be honest or ethical.

This we can blame on those we have elected from the County, State and to Washington.

As always I blame Bible johnny and his pal mikey.

1s7k1qp9wk1t7Permalink Reply by 1s7k1qp9wk1t7 on April 27, 2016 at 11:35am

My 5 year lease with CHK expires in 2 days on the 29th. Chesapeake informed me just today they are renewing and the check is on it's way

Permalink Reply by tacoma7583 on April 27, 2016 at 11:54am

@Danny what county are you in?

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service