Deductions from royalty check any Idea????
Does anyone have a Idea.Just got my first check they took almost 50%.
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Permalink Reply by Steve Thornton on
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I have to respond to this. and yes I am an adult. i am with you in that the loss of money is nothing compared to the things you mention. But, i worked for a large ag lender in the 90's and i can tell you most of the farmers were leased at extremely low rates.
But yes in my mind the farmers were treated like the indians. The oil co. can apparently legally come in throw down a pad, stick in a little well maybe go down a few hundred feet, with no fracking and no pipeline in sight. And this minimal effort can be used to hold their lease so the farmers can't get any more bonus signing $ or negotiate a new lease.
So yes.... for a few trinkets they can hold the land. The question that remains a mystery to me is how this can not be seen as "bad faith drilling" Everyone knows there was no way that most of the wells that were drilled, most of the pools that were formed and most of work that was done was going to result in no royalties before the lease should have expired. These wells/pools were not even drilled with the idea of becoming productive. How is it that there is money to build the pads, buy the big rigs, put in the pipeline, but that every attempt possible was made to keep the farmers from getting a few pennies on the dollars they have invested in their farms?
i always sympathized with the oil cos claims of being unable to lease federal lands, but when i see the amount of land that has been leased and goes untapped (or maybe tapped just enough to hold the landowners) then it makes me wonder.... just another side to think about.
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Permalink Reply by Frank Walker on
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Phillip
Pursuant to what I wrote earlier, above:
Here is proposed legislation to circumvent Kilmer. In order to gauge this legislation's chance for passage, consider the sponsoring members do not belong to the party currently in power:
Here is discussion of the situation:
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Permalink Reply by PHILIP ANGELO on
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looks like the gas companies wrote this legislation. Gas companies must be buying off all those politicians.
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Billy,
Please share with me what you thought I had written with the intention to "peeve off individuals". Where did I state that it was OK to disrespect or cheat landowners? Where did I state that O&G companies are more important to the exploration and development process than the landowners? This is a business process, pure and simple.
Its great that you can walk out your back door, grab your chainsaw and hack down a tree in order to heat your home, or create lumber to build yourself a home. Far and away the vast majority of Americans live in urban areas and they do not possess the same resources you do. They depend upon natural gas to heat and cool their homes. I have never condoned the business practices that Chesapeake seems willing to condone nor was there a single reference in my previous posting to Chesapeake. You have a choice in who you elect to deal with in terms of oil and gas leasing. If Chesapeake is on your "naughty and not to be trusted list", then sign with somebody else. It is after all, a free country.
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Permalink Reply by Billy Park Whyde on
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I took it as insulting as a land owner. That's my personal opinion. Had you communicated that with me with your lease offering in your hand I would have suggested another use for it.
Your context appeared to be one of land owners being dumb as in " Do you really perceive yourselves as being as similarly subject to being taken advantage of? Are you that devoid of knowledge of how business works that you need government protections to survive? You can farm your land for hundreds of years, sell your crops, sell your milk, etc at fair market prices but you are incompetent when it comes to obtaining what you think is a fair price with regard to oil and gas leasing and development? "
I personally do not like government involvement but when the public is taken advantage of then those that do it need controlled. We created Public Utilities, the FDA to avoid snake oil, the FAA to insure to some degree safety for those on the ground under the aircraft.
The acts of CHK could very well bring on new control.
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First of all, I didn't have a lease offering in hand. Secondly, what could you have possibly construed as my having stated that landowners were dumb... quite the opposite, I stated do YOU really perceive yourselves as being similar to Native American Indians that gave away Manhattan for beads. I certainly don't believe that to be the case. I stated that you engage in many business activities that should create a working knowledge of the business world suddenly YOU think you are incompetent to negotiate a business transaction and in need of government protection. Those are the views that I see YOU as a landowner expressing... help me government... I am helpless. I too detest government intrusion into our everyday lives. This country wasn't founded upon the principles that the government should protect us from ourselves. Yes, there are already a multitude of laws on the books that protect consumers from shysters. It is already a crime to defraud a senior citizen on a home repair scam... but come on now... oil and gas leasing... this is a business transaction and as much as you might feel that you are up against a superior force in terms of dealing with an oil and gas company... there are attorneys that you can hire to assist you. The last thing we need is yet another government watchdog committee that will soon be receiving lobbying kickbacks and lifetime pensions. Who's money is going to pay for that... yours and mine my friend.
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Permalink Reply by Billy Park Whyde on
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"It is already a crime to defraud a senior citizen on a home repair scam... but come on now... oil and gas leasing... this is a business transaction and as much as you might feel that you are up against a superior force in terms of dealing with an oil and gas company... there are attorneys that you can hire to assist you. " An attorney can also be used by a senior citizen to prevent home repair scams as well the attorney generals office does that. But I would find it hard to believe a oil and gas company wouldn't think twice about giving a senior citizen a 12.5% royalty instead of a 20% royalty, after all it's business right?
We have different views I care not to go further with this but as a land owner it leaves me with a bad taste. With the games Shell has pulled in Guernsey County along with CHK in other areas it only increases the cost to the O&G companies.
Have a nice weekend.
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Billy,
There is nothing inherently wrong with our having contrasting views, it promotes healthy discourse and helps us each to know what motivates or troubles the other party. It would be pointless to argue that a contract agent/landman might perceive that he could sign an elderly lessor at a royalty or a lease bonus that is less than what he had to give to one of the neighbors. These guys are looking for ways to appear industrious and clever to their bosses and bringing in a lease for less than what was authorized certainly will earn that landman some recognition because as we have both stated, "its a business". What I find odd is that landowners don't think that this happens every day of the week with a whole bunch of different transactions. Do you realistically expect that the pleasant smiling car salesman at the Buick dealership down the street is going to hand you the title to a new Enclave at the same price that the hardest negotiator/trader got it for? I doubt that is your belief. That car salesman is expected to maximize the profit margin for his employer on each and every transaction that he closes. Do you think that the seller of a house is going to extend you his bottom line/must have price the minute you walk in the door. Doubtful. At least in the old days your insurance adjuster required that you get estimates from three different car repair establishments before they would authorize a repair... because of the fact that different companies quote different prices and rates. Oil and gas companies are no different and I don't know why you would realistically expect a higher standard of them.
I truly appreciate your perspective, have a nice weekend yourself!
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Permalink Reply by DONALD MCNAUGHTON on
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To all the good people involed in these comments it is my opinion that there is a person who is pretty much saying your comments are stupid. This person seems to be someone who is in with the companies who have been cheating people like all of you. We are just regular people trying to get thru this mess and asking for helpful comments. This person does have freedom of speech but why does comments belittle others opinions! I guess i will be attacked again for my opinion!
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Donald... I have never said or insinuated that anyone here, regardless of their affiliation was stupid, nor that their comments were stupid. When you incorrectly stated that companies charge the royalty owner for everything from a gallon of gas to drive to a well, I responded that this was a ridiculous assertion. If you will Google the term "ridiculous assertion" you will see that it refers to a statement that has no basis in fact. Your allegation had no basis in fact and I merely pointed that out. I didn't say you were "stupid" for having said so. I have no expectation that landowners would be privy to every nuance of the oil and gas business and the fact that landowners are not knowledgeable in every aspect of our business doesn't make them "stupid" and I have NEVER asserted otherwise.
I am NOT "in with" the companies that have been (in your opinion) "cheating people like all of you". I work for one company... a company that has never been accused of lying or cheating anybody that I am aware of. Yes, I am in the gas business and I have never pretended otherwise.
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Permalink Reply by DONALD MCNAUGHTON on
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SO WHO CAN WE TRUST THE PEOPLE OR THE COMPANY PEOPLE
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