Today, i had a new key cut. Lowe's, Ace True Value Hardware, Home Depot, etc. would not cut a key for me because it has a chip inside. WTF? Is this America? Can i get a key cut just cause i want to because i'm modding my car and i'm gonna hack up the key anyway. Instead of paying $10 for a key i have to pay $48. Geez. Anyway, i went to a Chevy dealer and had them cut a new key. According to the tech that help me, the chip has to be in very close proximity to the ignition cylinder. It cannot be just in the cab or in your pocket, but it doesn't have to be a chipped key in the ignition either. So, i will cut up my old key and retrieve the chip.