Can someone help me understand this email chain and question. Please don't laugh when you read that I Burden CHK. I can't get a staight answer.
From: Revenue Inquiry [mailto:revinquiry@chk.com ] Sent: Thursday, February 27, 2014 11:59 AM To: 'Mike Antrim' Subject: RE: Revenue Check question
Mike,
As a royalty owner in this well, you burden Chesapeake, Larchmont Resources LLC, Stat Oil, Anadarko and Mitsui E&P USA LLC . Stat Oil, Anadarko and Mitsui are taking their gas in kind, which means they are not marketing with Chesapeake. So they are in charge of paying you on their portion of the gas. You will need to contact them for payments, if not received already.
We are just paying Chesapeake and Larchmont’s piece which is .00425851. If you take this portion .00425851 divided by the inflation factor .38402798 you will receive the payment decimal .01108906. We have to inflate the payment decimal since not everyone is marketing with Chesapeake, we are not in a 100% joint operating arrangement. We do this to insure everyone receives their proportionate share of the volumes produced.
Please let us know if you have any more questions.
Thank you,
Revenue Team
Attached is my Division order.
I have called 3 days in a row. Place on hold for over hour and no one picks up. This is completely unacceptable…………………
I need someone to call me.
The first royalty check the payment decimal was exactly what was on the Division order. The Acres matched. See attached Division order ACRES 535.936466 BPO net Acre 50.495298 APO unit int
.01177735
I have looked thru my records and 11-2010 the payment decimal dropped to .01108906 and my recent check has acres at 536.665434.
Anadarko and Statoil have never changed the entire time. owner decimal interest is .01177735
I need someone to contact me to discuss this
Tags:
I did a little research on Landex and the unit was amended dated 8-16-2012 to the figure 536.665434 acres in the unit and it has remained at that number.
Your owner decimal interest should be:
50.495298 / 536.665434 times 12.5% royalty = 0.0117613542
It depends on the royalty number in the lease, your acreage in the unit and the total size of the unit. It doesn't make any difference who owns the lease or who sells the gas so that number 0.01108906 that the letter calls a payment decimal is something else.
You state they started using this number 11-2010 so it may be time to be thinking audit. In a couple of weeks there will be a public hearing in Harrisburg concerning Chesapeake's treatment of royalty holders. I would suggest passing this information along to Jim Souto at Peoples Bank who I hear is speaking on behalf of NARO.
That's unbelievable that they have the audacity to say that you BURDEN them!
I would be fired at my job if I talked that way to my clients.
Further, you would think inflation would increase your payment not decrease it.
Go with John Harrison's advice.
Mike,
I cannot help you, but can say that other landowners whom I interviewed last spring talked about the as you call it "unacceptable" behavior, or level of communications from the gas companies. In your case it sounds like the poor service here begins with this "Revenue Team." Perhaps you can press to find a member of that team? Did you email them at the address they provide?
Best to you,
Deb
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