Replies to This Discussion

Permalink Reply by PetroHawg on July 25, 2008 at 4:19

Hi Denise,

I haven't heard of anyone being able to renegotiate once the lease has been signed. Camterra did a tricky thing south of town. As you're aware, Chesapeake made "the big announcement" on March 24, 2008. Well, exactly one week prior, on the 17th, Camterra had their landman out collecting leases for $200 a lot at 1/5 (20%) royalty. Obviously, they knew what they were doing, and since exploration has been on-going along here for the past couple of years with Chesapeake, they knew what was beneath us.

I know of only one person who was able to get out of the agreement. Apparently their lease agreement wasn't notarized, so it wasn't "legal" as I understand it.

Luckily, there were some other neighbors, like myself, who didn't do anything. Just sat there. As soon as the landman came through here back in March, I started searching google and everything else to see what was going on. Of course, now everyone knows.

From what I understand one fellow just south of me sold out his 240 acres to Camterra back then. Still, when I did the math, he'll be doing OK, if not near $1 million/yr. if they put a well on his property.

Permalink Reply by Denise on July 25, 2008 at 10:05

a million a year is nothing to sneeze at but 4.5 million in sign on would be better than 90 thousand and with what that well will bring in that's small potatoes.

Permalink Reply by RL on July 25, 2008 at 10:39

The only time I have heard of going above the original low offer was over in the Barnette Shale where a small town negotiated a good deal for hold outs that included some early signers. I think that story might be on one of the blogs here somewhere.