Is there a chip in the key?
is there anyway to get a copy without going to the dealer and paying $120?

 

Yes most likely chipped and ace used to do it for $70 but basically you need a computer to program them and they are expensive so your going to be paying for that computer in the price from the shop that does it.

 

Yes, Ford use PATS(passive anti-theft system).

There is an RFID "chip" in each key, it requires no battery, on the key cylinder there is a "reader" loop, when key is inserted and turned on the loop reads the RF tag number, this number is sent to PATS module where tag numbers have been stored, if tag number matches a number in memory computer will allow engine to start.

There are a few ways to add PATS keys to PATS module memory.
If you have 2 different PATS keys that work in the vehicle you can add a 3rd yourself.
If you only have 1 working key then Ford can add 2nd key to memory($120) and you can add a 3rd yourself, so if one is lost you can add another one with 2 remaining keys.

If you have one working key you can "clone" it, a locksmith with an RFID reader/writer can cut you a PATS key and then read the tag number from your working key and write it to the new key, so both keys have the same tag number, and both keys would work.
Cloned keys have the same tag number so can't be used to add a 3rd key, you need two different working tag numbers for that.

Some locksmiths also pay to subscribe to the Ford PATS system, so can add PATS keys just like Ford Dealer can, call around.

 

Another option i kinda cheated when i lost mine i had walmart cut a non chip key just in case i ever locked the keys in if your particular about keeping up with the one good key you should be fine with that and it will only cost you about $5 just something to keep in mind.