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Drilling Activity => Pennsylvania => Susquehanna County => Topic started by: aja458 on December 07, 2017, 06:23:46 AM

Title: Renegotiating lease
Post by: aja458 on December 07, 2017, 06:23:46 AM
my lease ran out in april 2016. had a 5/5 lease but they didn't renew it.
yesterday I received a packet from cabot with paperwork to start a new lease with $1000 per acre and 15 percent royalty. I never talked to anyone from cabot about this.My questions are is the offer in line with others and is this the way they do business now? they also put a 12-31-17 deadline on offer. I am in lenox township in Susquehanna. by the way the old lease was 6k an acre and 21 percent. any chance if I don't sign they will up the offer? hate to leave anything on the table.
Title: Re: renewing lease
Post by: ap on December 07, 2017, 07:07:01 AM
Where in Lenox Township?  Those first lease numbers are the best I have heard of.  ap
Title: Re: renewing lease
Post by: ghrit on December 07, 2017, 08:13:58 AM
Seems to me that an unsolicited offer with a deadline is simply an attempt at opening negotiations.  If it's worth 1000 to them AND they sent you a note, you can bet that the offer is not firm, and neither is the deadline.

At the risk of stating the obvious, this is NOT a renewal, but a whole new negotiation.
Title: Re: renewing lease
Post by: insuranceman on December 07, 2017, 09:10:09 AM
Not hard facts, but reading on hear, the handful of new leases seem to have been closer to $1500/ 17%, I would try to bargain a little more.
Title: Re: Renegotiating lease
Post by: aja458 on December 07, 2017, 09:55:58 AM
The offer came with paperwork to be notorized if I accepted and a contract.
I have land not far from stalters pad.
Title: Re: Renegotiating lease
Post by: macal on December 07, 2017, 10:09:20 AM



  You are sitting one of the best gas deposits in the world.
 
Title: Re: Renegotiating lease
Post by: ghrit on December 07, 2017, 12:47:52 PM
The offer came with paperwork to be notorized if I accepted and a contract.
I have land not far from stalters pad.
THAT would indeed make their job easier.  Methinks you would do well to prowl this site for some hints and tips on what to look for in leases and addenda. There are really too many threads to even attempt to list here.  DO NOT SIGN A LEASE WITHOUT LEGAL ADVICE.  You may not need an attorney, but for certain you need someone looking over your shoulder that knows something.
Title: Re: Renegotiating lease
Post by: GONRA on December 07, 2017, 05:51:42 PM
GONRA sez - FOLLOW THIS ADVICE!
Title: Re: Renegotiating lease
Post by: 270sniper on December 16, 2017, 01:48:06 PM
I would hold out.  I bet they get back to you with a new offer.   When my lease expired Cabot wanted to renew my lease with an amendment lease and offered me half of what I received with the Friendville Group for two yrs.   I accepted because they had started working on a nearby well