Replies to This Discussion

Permalink Reply by Jim Litwinowicz on March 31, 2012 at 5:46am

There are a couple of other reasons for selling rights.  Some people are deeply in debt and this may get them out of debt instead of waiting for years to get royalties, if ever. Also, a few people sold their rights so that they may finance a great business opportunity. I know one family that is considering doing so to settle an estate. Some times a divorce gets pretty ugly and the only way to reach a settlement is an outright sell..  I also know one family that has huge debt due to a major health issue.  They might be able to sell the deep rights and get a release of liens on the surface ownership, thus saving the home for their kids.

For most people, selling the rights is a bad decision. I strongly recommend avoiding it if at all possible.  But for some, it is the best option.

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Permalink Reply by take the money and run on March 31, 2012 at 2:50am

I should add, they have not even drilled in my area yet, that I know of. Have just heard rumors, of a mega well going in, and Chesapeake would need 1200 acres. Rumor has it the well is going in up the road from us. Also have heard that Chesapeake keeps the first two checks in roylaties. What I would like to know, has anyone seen any roylaties yet?

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Permalink Reply by Clinton44 on March 31, 2012 at 3:07am

Is Cheapeake the company that holds your lease,?? As far as keeping the first two rotalty checks I have never heard that... 

When a well goes into production it sometimes takes up to two months to receive your first royalty payment due to the time it takes the drilling company and any partners they may have  in the venture to get the necessary information, tax ID numbers of royalty owners, mailing addresses etc. File DPU's and divsion orders.

Receiving the royalties is the easy part, making sure the proper amounts get to the proper royalty owners is a very involved process    

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Permalink Reply by take the money and run on March 31, 2012 at 3:15am

Yes, I am under lease with Chesapeake. Thanks for your help. Like I said the rumors are getting deep.

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Permalink Reply by Anonymous on March 31, 2012 at 3:38am

There are only three permits for perry township right now and all three permits are active.  (waiting to frack, drilling or building a new pad.)    Are you near another township that is drilling?   I'm a little confused as to where the rumored well is to be.   

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Permalink Reply by take the money and run on March 31, 2012 at 4:36am

It is suppose to be drilled on property on Route 164 or Amsterdam Rd.

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Permalink Reply by Finnbear on March 31, 2012 at 3:39am

@take the money and run

YOUR specific lease will spell out exactly how and when YOU get paid. Your neighbor may have negotiated a completely different deal and the specifics of his lease may not apply to your situation.

Do you know what you signed?

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Permalink Reply by Utica Shale on March 31, 2012 at 4:56am

TTM&R,

" ... Have just heard rumors, of a mega well going in, and Chesapeake would need 1200 acres ..."

 

 A mega well?

 Really?

 

 3 Horiz Wells going North-West fit nicely into a single North-West 640 acre Production Unit. 

 3 Horiz Wells going South-East fit nicely into a single South-East 640 acre Production Unit.

 Or all 6 wells can fit nicely into one large 1,280 acre Production Unit.

 This is all typical stuff.

 

 So, what are the details of this rumored 1,200 acre mega well?

 

 

 " ... Also have heard that Chesapeake keeps the first two checks in roylaties ..."

 Can your source prove this to be true?

 

 

 

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Permalink Reply by JR on March 31, 2012 at 7:27pm

I'M just really concerned that you need a lawyer.  your recent post makes me wonder if you're in a position to really  represent your interests. Get a lawyer! FOR  YOU!!!!!

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