Royalties...finally

Finally started getting our royalty checks from Chesapeake and Stat Oil. I was a member here before but nothing was happening with our property and all everyone was offering was conjecture and hearsay. The checks we have gotten from our well in Bradford county are really not that good. We must have gotten an average production well. We have 15 acres in two units and the on that is producing is about 9 acres and the total checks between the two oil companies total about $1500 dollars for three months of production. The gas prices they sold the gas out was well below the well head price that you see on tv or on Marcellus shale forum. The gas was sold for over $1.50 less than you see everywhere and the amount chespaeake takes out for production is between 34-38 per cent which is ridiculous. Hopefully, the price of gas will rise in the future to give us a little more in royalties. Just wanted to post this because when I was a member before was kind of upset that no one would say what they were getting and told myself when i received royalties I would share the info. Really thought we would be in for a windfall but I guess it all depends on the output of the well and the thing is we only have one well drilled on the pad and it doesn't look like more wells will be drilled in the near future. Just have to hope the other unit I am a part of will produce better. If any one has any questions feel free to ask. Thanks

Views: 24636

▶ Reply to This

Replies to This Discussion

Permalink Reply by Tico on December 12, 2012 at 9:42am
Be thankful that you have been passed to southwestern, Chesapeake is ridiculous to deal with, it would be amazing if they started with three wells, that would be great for you, Chesapeake I think would drill one well and will probably never drill any more,,
Permalink Reply by JK on December 12, 2012 at 9:55am

Exactly Tico.

We wish to be taken over by another company as well.

Maybe then we won't have to wait another 5 years for CHK to actually develop our Marcellus!

I am fed up with them.

Permalink Reply by Ruth Crain on December 11, 2012 at 1:04pm

I think it depends on the flow rate of the well. Chesapeake controls the flow rate....I heard. I have a friend with Cabot and they are getting $18,000 a month for 17 acres with two wells in their unit. The flow rate is really good in the one well. I asked George Weissman from Chesapeake about the flow rate. He said Chesapeake wells will last longer if the pressure/flow rate is not as high as the Cabot wells. He said Cabot wells may only last five years when Chesapeake wells will last for thirty years. I think he is taught to talk in circles and not give an honest answer. I think that Chesapeake will control the flow rate until the price of natural gas goes up. I wonder why the Chesapeake wells are doing a flow rate of 7's and 8's and Cabot wells are doing 23's. I'm sorry I signed on with Chesapeake.

Permalink Reply by JK on December 11, 2012 at 1:12pm

Ruth,

We have 4 wells and chesapeake is controlling the flow to just running a couple of hours a day.

Our checks are less then $1000 a month!

This has been going on for over 4 years!

With HBP on 1200+ acres we own it is awful to be under CHK's control.

Plus, today I called them and asked where our papers are and got double-talked again.

They lie constantly and we have received no royalties for 6 months now.

Permalink Reply by lance on December 11, 2012 at 1:17pm

WOW, Id have to get a lawyer

Permalink Reply by Ruth Crain on December 12, 2012 at 11:39am

Unfortunately, we are stuck in our leases with Chesapeake. If they put one piece of equipment in a unit they get out of paying another sign on bonus. They have an army of lawyers and know how to bend rules in their favor. George Weissman came to a landowners meeting. He told us if we want more money buy more land.

Chesapeake tried to lock landowners in their leases (Force Majeure) because of the moratorium in New York state. They landowners took Chesapeake to court and won. This gives me some hope that even though they are a huge company with an army of lawyers the landowners can still win. 

Permalink Reply by JK on December 12, 2012 at 5:15pm

Ruth,

Class actions work too..

Permalink Reply by Ruth Crain on December 12, 2012 at 7:06pm

True

Permalink Reply by lance on December 13, 2012 at 1:17pm

I hope Shell aint thata way..... Damm it.....What a disappointment....What state are you in?I m in south eastern Ohio

 

Permalink Reply by JK on December 11, 2012 at 1:48pm

Thanks Josie,

Even though we are under CHK Appalachia, I wonder if this could affect us!

No wonder they aren't sending our royalties.

Permalink Reply by Doug Duffield on December 11, 2012 at 1:53pm

Midstream is pipeline

Permalink Reply by James T Monyak on December 12, 2012 at 9:34am

Matthew,

A company in a poor financial condition will tend to change their best practices   It's clear from all the articles that Chesapeake is financially challenged and may have caused them to do things unacceptable to the landowners.  I believe there a few lawsuits against Chesapeake for their new methods of paying royalties. 

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service