chk putting a pad on my property..advice

chk showed up on my farm today and started constuction on a pad and water impoundment.  gave us no notice...no surface agreement was signed....they are taking 12 to fifteen acres of our crop field..cutting trees..putting in roads etc.  i had no idea they were starting.  they gave us a surface agreement to look at...never came back and just showed up digging.  i went out this morning...shut them down...after i left they started again.  we have an old o&g lease from 2005...they say they can do whatever they want...any advice  mark

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Permalink Reply by Schnoozie on December 8, 2011 at 10:06am

what county, state?

Permalink Reply by mark o on December 8, 2011 at 10:12am

pa bea

Permalink Reply by Paul Martinelli on December 9, 2011 at 5:26am

Old leases basically do give them rights to do almost anything they want.

Permalink Reply by Jack Straw on December 8, 2011 at 10:20am

Hi Mark,

               Without seeing every word of the lease of 2005 (I am assuming that it is still valid); it is difficult for anyone to make an intelligent comment.

It seems surprising to me that CHK would press ahead without a signed Surface Damages Agreement (I would consider the Surface Agreement earlier dropped off to be a "draft" agreement, subject to negotiation and modification ). However, CHK does seem to have a reputation of Bulldozing first and asking questions later.

With what little I know, and with what little you know, I would suggest that it might be in your best interests to:

Quickly attempt to locate a local Attorney who has O&G experience.

Gather up your lease and the "draft" unsigned Surface Agreement and any other documents/correspondence you might have and arrange to meet with that Attorney (as soon as possible).

You need to get in touch with someone who is qualfied to inform you of your exact legal property rights; someone who has the ability to see that your legal property rights are enforced.

In the interim, I would start calling CHK, moving up their chain of command until you can speak to someone that is in a position to (and willing to address) the situation.

Good luck!

Please keep us informed as to how things go.

All in my humble opinion

JS

 

Permalink Reply by mark o on December 8, 2011 at 10:30am

chk was to send someone to site this morning to talk to me.  waited 2 hours and they never showed.  been told all day they will have someone call...still waiting.  i know i need legal advice....has anyone else had this happen to them.  i still cant believe how out of the loop they kept us.  is this standard practice for them.

Permalink Reply by DrWAVeSport Cd1 on December 8, 2011 at 11:23am

mark,

Simple answer...Yes.  CHK does what CHK wants to do.  IMO you need to get good O&G legal advice now.  I am a CHK unleased mineral owner in Louisiana's Haynesville Shale.  CHK makes it very difficult for mineral/property/stakeholders to find out information on their activities.  Most of us don't have the "muscle" to force them either.  Don't wait on CHK for the answers to questions you need answered.  CHK will evade and avoid as long as possible.  IMO

Take it from those who walk where you walk...   Find out your legal rights/standing and those of Chesapeake's.  Good Luck to you and yours. 

Watching from GoHaynesvilleShale.

DrWAVeSport Cd1  12/8/2011 

 

Permalink Reply by TFP on December 8, 2011 at 11:14am

I live in Beaver County, PA and I emailed CHK about my property.  They said "we are not in your area at this time."  Leases are difficult to read and go over.  If you seriously feel something is wrong, I would drive down to your police department and explain the situation.   Perhaps they could stop them temporarily until you get a lawyer to look at the lease and to talk to CHK.

Permalink Reply by mark o on December 8, 2011 at 11:22am

already tried,   was told by a lawyer that it is a civil matter.

Permalink Reply by TFP on December 8, 2011 at 11:36am

If someone has the right to be there, its civil.  If someone doesnt have the right to be there and your property is posted, its criminal.  Thats the way I understand it.   I would still go the local police or the state police or perhaps a representative could help.  Vogel in Rochester is very helpful.

Permalink Reply by Jack Straw on December 8, 2011 at 2:31pm

Mark,

          You have my sympathy in dealing with CHK.

It seems to me that CHK (Chesapeake Energy Corp.) has gone to extraordinary effort to obtain a bad reputation. I find their behavior to be most confusing; why would you purposely behave in a manner that alienates landowners, why would you purposely behave in a manner that sullies your corporate name?

O & G companies strive to obtain a competitive advantage; and one way to obtain that competitive advantage is for your company to have a reputation for fair, honest, equitable and congenial relations with the landowners who have leased their land to you.  I would think that having a reputation for treating people fairly would make the Landman’s life a lot easier. I would expect a “good” company to behave as a  partner and realize that the are a guest on your land.

Having heard so many stories about how CHK have dealt with people, I would much prefer to lease to a competitor who has earned a good reputation – even if it meant a bit smaller up front bonus or a bit smaller royalty.  

Why would I accept less from a competitor?

Because dealing with CHK might well lead to a lifetime of frustrations (and the potential need for litigation).

For me, life is too short to deal with people whose past actions have indicated that they have neither respect for me nor regard for the rights of me - a landowner.

My suggestion: After shaking hands with a CHK Landman, count your fingers before to let him get out through the door.

All in my humble opinion.

JS

Permalink Reply by DrWAVeSport Cd1 on December 8, 2011 at 5:43pm

JS,

LOL.  ...and your toes...and your nose...  CHK leaves mineral owners with the lowest $/mcf of all other Payors, and docks their royalty checks for more % of deductions than other Payors. 

If you or other GMShalers want a lesson on CHK and royalty checks...visit gohaynesvilleshale.com and check out GHS member "Henry's" Discussion titled:  "What Price Are You Getting." 

After reading Henry's Discussion...You might not even "shake hands." LOL

Passing the Word Along...

DrWAVeSport Cd1 12/8/2011

 

 

 

Permalink Reply by Schnoozie on December 9, 2011 at 5:51am

Did'nt half the Co-Exprise leases in that big deal go to Chesepeake??? 

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