Chesapeake lease renewal

Does anyone have any personal experience of lease getting renewed or not renewed? In eastern Carroll county Ohio and lease is up in dec. roughly 200 acres. Thanks!

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Permalink Reply by Dee on September 26, 2016 at 12:21pm

Our lease with CHK is in Brush Creek Jefferson County, essentially at Monroeville. We are awaiting word regarding our lease which expires on Oct 12th 2016. A conversation I had with the Tulsa office several weeks ago resulted in ambiguity and a statement that they are letting a lot of leases expire and that we would know if we are getting renewed a week or so prior to the expiration date.

Permalink Reply by Robert J. Smith on September 26, 2016 at 12:50pm

They will not let you know.  You have to call them after the expiration date when you do not receive a check from them.  On two of our properties they cancelled the lease approximately 2 1/2 months after it the expiration date and on another they did nothing.  We had to go through the forfeiture procedure.  Keep after them.  They did tell us that none of the leases would be renewed when we called after the expiration date.  Good luck.   

Mike MurphyPermalink Reply by Mike Murphy on September 27, 2016 at 1:33am

WE can all be glad we are done with CHK and will have a second chance to release are minerals in the future with the knowledge we have gained from this wonderful website........hoping to see the go ahead with the cracker plant in dileys bottom ......then all heck will brake lose and our mineral rights will be in big demand....... along with more LNG exports and more gas powered electric power plants..... we need more activity in the oil window which they have barely touched 

WE ARE BETTER OFF

Permalink Reply by Drill Pipe on September 27, 2016 at 10:18am

We have acreage in upper Salem township, Columbiana Ohio, and CHK without prodding sent rental check at about the date of renewal.

Mike MurphyPermalink Reply by Mike Murphy on September 28, 2016 at 6:23am

Driilpipe sorry about  your luck.... be better off if they would not have renewed you and you had a chance to lease your mineral rights over again maybe with a better company and a better lease now your stuck for 5 more years

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on September 30, 2016 at 2:24pm

If you think about leasing your minerals again, consider this. We will be seeing bonus figures that are low similar to 2010 when the Farm Bureau speaker told us a $2000 bonus might be out there but it would be as rare as a 14 point buck. He said You know they exist but they are rarely seen.

Before you know it the bonus went to $2,500 then $5,600 and on up to $8,000 for government entities, because you have to please the government in order to have your way with the landowners.

Today oil prices are low and Big O&G will want to convince everyone that the big bonuses are a thing of the past.The volume of well products in the ground haven't changed (except where produced like crazy with very little royalty pay out) and the Appalachian Basin is still the number 1 or number 2 fossil fuel find on earth.

Like we were told in meetings, everything is negotiable, we have what Domestic Oil and Gas companies want, keep cool and don't be afraid of being force pooled. The ODNR law for force pooling will ensure you get a better royalty than anyone in Ohio has seen since 2013.

Based on the royalties I've seen and those who run our state, I'll be looking for the largest bonus I can get, or I'll sit this one out. Force Pooling would be better than getting another 50 cents an acre as a bonus with state officials patting each other on the back or running for president, smiling as if nothing is wrong in Ohio, and keeping the truth out of the news. Notice PA is starting to break their silence but they have been stolen from since 2008, they were overdue.

If you decide to take $2,000 or $3,000 an acre being offered in 2016, it's possible someone else will be paid the bonus you didn't ask for.

Ohio politicians will need to pass a minimum royalty law or a law that says they will enforce the laws on the books against domestic o&g producers before I'll count on seeing anything but the unfair royalties we have been seeing.

In Texas landowners were leasing for larger bonuses than we saw here in the Basin, and a 25% Gross royalty, although I'm pretty sure they got the same 0 to 2 percent royalty we have been getting since Chesapeake was involved.

So bottom line, your potential wealth belongs to you until you put your signature on that lease contract. Know what you have and demand what you want as a bonus on a detailed contract. It could go south again, and this time OPEC won't be saving our Fannies, we will be drilled over and held by something called production, with payments however slight, as Carroll County has been done.

Did I mention doing business with Oil & Gas companies isn't like doing business in the US. It's more like doing business with someone in Nigeria. Think about it.

Permalink Reply by Robert J. Smith on October 1, 2016 at 4:21am

We hurt ourselves the most because everything is kept secret, either because O&G asks us to or because we do not want anybody else to know our business. Secrecy is the enemy that denied fair leases early on and secrecy will do the same in the future.  For my part I will post as soon as I receive an offer or sign a contract. PERIOD! How about some cooperation among us to start?

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on October 1, 2016 at 4:59am

Robert,

    Those $1 per acre lease agreements in WV were kept secret, the leases from that nice man who came by and offered to help out with the bills. You know he took home a nice bonus for every landowner he short changed. 

The joke was on each landowner that thought they had one upped their neighbors.

If those land men didn't ask for their ill gotten bonuses in Asbestos bills the money didn't go with them to their Final Destination.

Correction For Last Post Above:

Change: Force Pooling would be better than getting another 50 cents an acre as a bonus

To: Force Pooling would be better than getting another 50 cents an acre as a royalty.

Permalink Reply by Robert J. Smith on October 1, 2016 at 12:16pm

Here is where we are in Eastern Ohio as far as the politicians go. Look at who is supporting our representative to Congress:

WHO OWNS YOUR CONGRESSMAN

                                                 FOR OHIO’S SIXTH DISTRICT

 

Bill Johnson has been our congressman for going on six years and now wants a fourth term.  Bill Johnson wants to repeal social security for all but the elderly and those close to retirement along with the Affordable Care Act (Obama Care) that enables everyone to have access to medical care.  Bill Johnson has amassed about $1.4 million for his reelection campaign.  Very little, if any, of this money has come from individuals like me and you.  Instead, all contributions to Bill Johnson’s campaign came from special interests such as those cited below. 

 

CONTRIBUTIONS from top industries:

 

     Oil and Gas  $140,859   Health Professionals   $119,700     Electric Utilities  $99,750

 

     Pharms/Health Products $67,350     PACS $50,400           Insurance    $46,758

 

     Telecom Services $43,000                      Health Services/HMOs     40,000  

 

CONTRIBUTIONS from the top sectors of the economy came from:

 

     Energy/Natural Resources  $303,450   Health  $234,400    Misc. Business  $195,608

 

     Commo/Electronics   $116,200                      Finance/Ins./Real Est.  $98,958

 

      Ideology/Single Issue   $77,150   Labor   $76,500    Lawyers and Lobbyists  $51,585

 

CONTRIBUTIONS from the top contributors came from:

 

     Brilex Industries  $23,900     AT&T  $15,500   Am. Ac. of Ophthalmology  $15,000

 

     Haliburton   $15,000    USAA Ins. $15,000    Chesapeake Energy    $14,500

 

    Koch Ind. $14,000  Honeywell Int. $13,000  Compco Ind. $12,850 Marathon   $12,500

 

The above contributors are buying the election for the Sixth Congressional District and Bill Johnson is willing to take their money and represent them instead of us, his real constituents.

 

Mike Lorentz is the Mayor of Belpre and is running against Johnson in this election.  Mike Lorentz has amassed all of $5,338.64 in contributions for his campaign.  Mike has the experience from both the private and public sectors to represent us fairly in congress without undue influence by special interests. Consider voting for Mike Lorentz as your Congressman for Ohio’s Sixth District which includes Belmont, Columbiana, Carrol, Gallia, Guernsy, Harrison, Jackson, Jefferson, Lawrence, Meigs, Monroe, Noble, Washington, and parts of Athens, Mahoning, and Scioto Counties.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on October 2, 2016 at 11:36am

I haven't heard Bill mention the severe underpayment of royalties to landowners. You know how I will vote due to this one issue.

Out with the Old, In with the New. I'd like to see Ohio carrying the news of their multi billion dollar theft. It's theft from every Ohioan including Bill himself, except he may have been compensated with PAC Fund money, so it isn't as painful to him. That goes for everyone up for election.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on October 2, 2016 at 11:30am

I talked to a Chesapeake Rep. and a Lawyer in the past 2 days and have some information that is new.

Chesapeake Representative:

1)  Chesapeake said to call them back the week before your lease ends. They will have gotten a notice for all leases that Chesapeake is renewing, and they will tell you if your lease is in their plans.

2)  Using the Pugh Clause found in the ALOV leases (or any lease that has a Pugh Clause) to pull all acres that are not in a Unit that is producing, will not require a lawyer. You can call, use email or send a letter.   Chesapeake's email address is: contact@chk.com

Lawyer

1)  Chesapeake has been filing one Release with each Courthouse which list those leases that have been Released. No frequency was given from my memory.

This fits the information someone provided that the Releases were being done in batches, possibly Quarterly.

Notice:

Don't forget, the ALOV leases for November 2011 have a primary term end date of October 31st.

There was some babble over the phone about the Primary Term starting all over again if you are paid a bonus, as I have read in our leases, and hopefully we won't have to find out why that statement exists. You can be sure it's not to the landowners benefit.

Your leased acreage is being used by Chesapeake as Collateral for their Deutsch Bank loan per county records.

By requesting a Release of your lease, you can join another "Landowner/Lease Group" and only sign another lease if your research shows the potential producer is honest.....uh I mean, pays close to a fair royalty and if you like the size of the bonus. Remember the bonus could be everything, the royalty has been nothing.

Permalink Reply by Billy Ray on October 3, 2016 at 7:53am

Leases in Monroe and Harrison twp with CHK. 150 acres. Both expired without renewal. Contacted CHK and got the same story. They are not releasing land at this time. So unless you are in a drilling interest then don't expect any releasing.  Also, I would have the county recording records show that the lease has expired. It maybe a little work on your part, but it may work out best in the long run.

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