Got my first royalty check from CHK and I was a bit disappointed as I was told this was a "great well."
The check was for several months, but for purposes of explaining what I was paid for a one month period, I broke the math down to the one-acre level and used the month of December figures:
Full Month of December 2009 - production volume was 9.68; price was $4.98
My payment for one full month (December)/one full acre was $77.24.
Does that sound right?
Looks like Advance Royalty Solutions (ARS) purchases gas leases.
Anyone know of a firm that verifies that your royalty check is for the correct amount?
From what I know, they do not purchase leases, but they help landowners get up front cash in exchange for their royalties. This can be a useful tool to some people depending on their circumstances. Anyways, they also do provide well site auditing services. I have talked to them and they can help to ensure your royalty check is correct.
That works out to less than $2.60 per acre, per day - not even close to what the mean average of $5.00 per acre, per day with gas at $3.48 and 12.5% ! Check your lease, they may be taking a lot of production /transfer & transportation fees and costs, because they signed you at 18% - a nasty little trick CHK has pulled on rights owners, when they have to pay a higher percentage than they want to. Plus, they have been busted in the past for "miscalculations" in their royalty payments - big time. You should check into this right away. Here are some links to a few of the Chesapeake defrauding debacle :
Never presume because they are a BIG O&G COMPANY, that they cannot make a "mistake" (or deliberate) miscalculation with your royalty payments.
In this industry, regulatory law has not kept up with technology and the advancement of the drilling industry - it's basically up to us to protect our best interests, stay on top of current information - and do our level best TO KEEP THE O&G COMPANIES HONEST.
Todd's mom, Kit
Here's one for you - The meters stop working when the power goes out. And the gas keeps flowing anyway. We just found this out by accident! Hmmm.
So this means we have to keep an eye on it every time the power goes out!
I haven't been on this site for a while & just saw your post. you may have already gotten answers to your questions. Our property has been in the family for generations & included the gas rights. Well is not on our property & we leased the gas rights. The well does not need to be on one's property to get the gas out - they do horizontial drilling under the properties included in the well "pool." There is a lot of information on the Web regarding leases (one big recommendation - make sure you run any leases by your own lawyer - those landsmen & gas companies are very sneaky...sometimes downright dishonest - we can attest to that!).
How do your royalty payments compare now versus when you first started receiving payments?
Is your well a dry well or wet well? How many well heads are in place?