Add this one to the pile of complaints about CHK?
Recently I had a few extra moments to review my monthly royalty statement (check stub). Natural gas, NGL's, & Oil production appear on the statement. Oddly enough, my Royalty Interest Percentage had decreased for Natural Gas and NGL's only since the last time I looked at the the statement (approx one year ago). I could not figure out why or how that percentage would have changed. Did the production unit change and CHK did not notify me? Thats the only thing I could think of. So I asked CHK via email.
Here's what little they cared to share with me: Starting with 03/2017 production, this well went into make-up status. It was originally overpaid in prior months so we had to decrease the decimal in order to make up the overpaid volumes. This is why the payment decimal decreased on the recent check stub.
So what is "make-Up status" you may ask? As indicated above, for reasons unknown to me, they overpaid royalties in "prior months" and are now recouping those royalties prospectively by reducing the royalty interest percentage in subsequent months beyond March 2017.
Does this make any sense? I dont know. As you may know, they constantly are making retroactive adjustments to current month royalty payments (i.e. showing some adjustment to either paying quantity or price pertaining anywhere from say 3 months ago to even years ago). Why dont they just do this instead of reducing the royalty interest percentage? So now in addition to retroactive adjustments they are doing prospective adjustments?
Enough venting. Has anyone else had this happen? With CHK's lousy reputation, it is only natural to think it is just another scheme to pick your pocket.
Eclipse did the same thing to a lot of folks around Salesville, ohio. I guess they do whatever they think they can get away with.