DPS Penn Playing Games?

On the day our lease check was suppose to be cut, we get a call claiming that Chesapeake took over the title work and we need to sign more papers and wait an additional 45 days.  Anyone else get this call?  Isn't it kind of funny that they waited until the day the checks were to be cut?   What kind of game is beginning here?

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Permalink Reply by robert vepich on September 14, 2012 at 3:06pm

what county?

Permalink Reply by S. Wuthrick on September 14, 2012 at 3:37pm

Columbiana

Permalink Reply by Robin Hood on September 14, 2012 at 3:41pm

Just face it they do not want to pay one penny more or even on time if  they can take advantage of the landowner and make them cave in or wait. They basically hold us hostage with the promise of a big juicy apple. They have the lawyers and the money. We have the greed. 

Permalink Reply by Jack Straw on September 14, 2012 at 4:23pm

Given Chesapeake's reputation, you might wish to seek out someone else to lease to.

If there is activity and interest from more respected operators in your area, you may wish to contact them to determine if they have an interest in your property.

Chesapeake seem to be having difficulties in obtaining the capital required to allow them to honor all their many commitments. They have recently announced the sale of assets- but they likely have not yet received payment.

From the complaints of many, getting in bed with Chesapeake can result in mourning sickness (pun intended).

 

All IMHO,

                    JS

 

Permalink Reply by S. Wuthrick on September 14, 2012 at 9:01pm

I was told today by Dps that there is a clause in the lease that allows them the right to extend their payment terms and I am still bound by the lease and can not go elsewhere. Need to sit down this weekend and do some reading.

Permalink Reply by S. Wuthrick on September 15, 2012 at 5:21pm

Thank you so much Fang for the info. I will be getting right on this.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on September 16, 2012 at 11:05pm

S. Wuthrick,   DPS Penn is a middle man. 

When you void their lease, look for a Landowners Group to join or check out some of the Oil companies who are looking for leases, as I saw in Oil & Gas Magazines recently. For instance BP.  It would be best to have your own lease written to protect you rather than signing an O&G Company's lease, which may require a group of landowners to join in with. Ask around there are several.

After you sign with an oil company be careful of DPS Penn who came through my neighborhood looking to increase the Unit size by having us sign another lease. It turns out that more than the Unit size would have changed if the leases had been signed. Shame on DPS Penn.   Good Luck.   "DPS Penn With You All The Way???". 

Permalink Reply by jami d on September 18, 2012 at 4:03pm

yes, they're playing games. just received a call from DPS today. want us to go sign a 30-day payment extension because "it took so long for our title work" which is pure B.S. Our lease was recorded in July. I want to know what happens if we don't sign the extension? maybe they want us to send us a letter notifying them of failure for timely payment so they'll surrender the lease. maybe they don't want us afterall. they're not doing anything at the proposed well site near our house. i told him to send me the paperwork and i'll contact my lawyer. do we have any options?? i'm waiting to hear back from atty.

Permalink Reply by jami d on September 19, 2012 at 11:23am

fang,

i still don't understand the difference between signing an extension vs. notification letter about failure to pay. would the first result in automatic forfeiture and the other not (if they don't pay again)?? or is the letter just an official way to point out they're not holding up to their end of the bargain? 

Permalink Reply by Brian V. on September 18, 2012 at 9:49pm

You need to mail them a certified letter detailing all your information (name, address, parcel #, effective day of the lease, Order of Payment details) Make it very clear that you are writting to give written notice of a breach in their obligations under the terms of the lease. Make sure it is certified. That way you will have a copy of the date it was received and who signed for it. Your 30-60 days will begin upon their notice being served. Keep copies of everything. Check the court house and speak to the clerk if the lease has been filed or memo filed. If it is filed you may have quite a fight to get it canceled if they do not honor their agreement.

 

Most likely CHK has instructed this broker to take the heat for CHK's inability to fund your payment. CHK intends to pay it but they most likely would prefer to pay it out of next quarters budget.

Permalink Reply by jami d on September 19, 2012 at 11:25am

also, our lease was filed in july. our atty did point out what you said, that we'd have trouble getting it canceled now that it's filed if they don't pay up. i'm frustrated that we didn't have it in our lease that they couldn't file until it's paid. but hindsight is 20/20. 

Permalink Reply by Kathleen on September 19, 2012 at 11:42am
Oue lease said they could not put anything on our title (lease) until we were paid but they went a head and did it anyway. They put the lease on the title two weeks before the check was cut.

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