Replies to This Discussion

Permalink Reply by PLOVER on March 15, 2013 at 5:34am

... yes - i didn't have any platt's numbers ... i didn't know if CHK ..was above or below ... but they were above .... platt's numbers are not available (without a subscription) ... do you have one?

Permalink Reply by melissa humphrey on March 20, 2013 at 5:30pm

fwiw for those that wish to know, there is no wellhead price. No gas is sold at the wellhead. Area operators use a formula including at point-of-sale price and volume coordinated with wellhead measured volumes.  Stubs report those prices.

Pubic forums are filled with inaccurate information. If issues have economic consequences, the suggestion is investigate and verify. 

Permalink Reply by wyalusing jim on March 21, 2013 at 1:43am

interesting that you still believe this hump, when much information currently points to the contrary.

why do you say that there are no sales at the wellhead, when chk's website says that they do indeed sell "at the wellhead" to c.e.m.i.?

lawyers investigating their clients royalty payments have also received letters from chk which state exactly the same thing. ask doug clark, it's likely that he will show you the letter that he received from them. i have seen it.

if chk is providing false info, they're gonna have legal troubles down the road.

what proof do you have to back up this assertion of yours?

wj

Permalink Reply by wyalusing jim on March 21, 2013 at 1:37pm

another aspect of the fvgl that i am wondering about regarding royalty payments is, the btu adjustment portion of the definition of royalty.

assuming that an fvgl should be paid on an mmbtu basis, and assuming that the price listed on the check stub is the mmbtu price, why then is that price multiplied by the volume in mcf's to arrive at the final figure? shouldnt it be multiplied by the mmbtu's?

nepa gas is roughly 1030 btu's per cubic foot. which means that 1 mcf contains 1.03 mmbtu's, 3% more mmbtu's than mcf's.

wj

Permalink Reply by wyalusing jim on March 21, 2013 at 1:41pm

im assuming that all of you fvgl royalty recipients have been receiving the line gain credit from chk.

has anyone wondered why there havent been similar credits paid by the other 3 companies in the jv?

any thoughts?

wj

Permalink Reply by melissa humphrey on March 23, 2013 at 8:08am

Anyone can make dim assumptions, and if that is what they need to satisfy their internal need, that is their chosen lot. Make an assumption, add one’s personal logic and whalla, you have the answer “you” need.

 

Or why public forums maybe useful in raising questions but don’t provide answers with any degree of accuracy.

Working Interest Owners sell produced gas. Merchants and endusers buy gas. The transaction point of sale is entry point to the interstate or further downstream.

Permalink Reply by wyalusing jim on March 23, 2013 at 10:48am

"Anyone can make dim assumptions, and if that is what they need to satisfy their internal need, that is their chosen lot. Make an assumption, add one’s personal logic and whalla, you have the answer “you” need."

yes, sadly that is true.

and so, moving on, for those who choose to learn: http://www.bizjournals.com/dallas/news/2013/03/14/ed-bass-lawsuit-s...

"At issue is whether Chesapeake Exploration sold gas at the wellhead to Chesapeake Energy Marketing Inc., then sold it to a third party downstream, said Daniel Charest, a principal with Susman Godfrey, a firm representing the Bass family and other plaintiffs in the c..."

"We understand that Chesapeake does the sale at the wellhead to its affiliate so therefore the price should be the arithmetic average," Charest said.

this is a similar situation to the tawney v. columbia case in w. va. where chk eventually got slapped with a $405 million judgement.

learn or not, it's your choice.

wj

Permalink Reply by melissa humphrey on March 25, 2013 at 5:03am

I was warned and here we go/ lost energy in an energy forum. The Bass family has massive oil and gas interests in the SW. None of record in the NE we have seen. They are of course among the wealthiest US of families whose wealth is derived from energy.

 OK----This is not a TEXAS board, it is Bradford County PA. Googling, googling, igoogling might raise documents that help you feel self-empowered, especially if you are thus prone but most are not looking for psychic rewards and instead want factual information to use to better their understanding and economic interests. Here goes: 

As a lessor if you wish to know write the involved working interests and express your right to the following: a. a copy of the gathering and sales agreement(s) for the gas flow  b. statements showing the volumes of gas available for sale after gathering and transportation and to the specific  point here, c. a written description/ formula for how the WI determines the prices and volumes on which they pay royalties.

 We don’t follow Bass interests in SW US, glad to know others own some of that. Here in NE PA, by doing the above you will find that gas is sold at the point-of-sale, 9/10 at entry into the interstate, in our case the TGP or Mark I. The operator in question measures flow at the wellhead by well, and at the point-of-sale which is pooled. A formula is applied working back in proportion to wellhead flow and calibrated by date and price of sales. 

Many don’t get this involved, for those that do this is common knowledge, easily located. 

Further, everyone, everyone knows Chesapeake uses their marketing arm to sell their gas. There  is perhaps where offense is being built, who really owns it, and how PA corporate law related to status re actions of co-subsidiaries and how they come into play. Or put this way, PA isn’t TX.

 Granted It may be easy to feel BIG Oil is out to get you, but join the human race and all the paraphernalia that goes with it, investigate and proceed . Everyone makes errors, expect to.  

Just because the former CEO of a mid-sized E&P is bankrupt doesn't mean we are, in fact because of his uncontrollable gambling habit, we are the better off. 

  

Permalink Reply by wyalusing jim on March 25, 2013 at 1:05pm

well, thats a start! you once thought that no gas was sold at the wellhead, now you admit that it does...in texas.

as i said before, chk does admit to selling to c.e.m.i. at the wellhead in pa also. they also do it in the eagle ford, again in texas. i suspect they may do the sale that way in every play.

there is no energy wasted when we endeavour to understand anything that we are involved in.

i dont know why you feel that big oil is out to get you, i certainly do not. maybe you will get over that feeling as time goes by.

wj

Permalink Reply by melissa humphrey on March 28, 2013 at 11:04am

WE have other minerals but nine in Texas, don't really know that is your contention.

Some people are so frustrated by their lack, and add in complete distrust of corporations , their agenda becomes something they should use in the mirror only. Gas corps corral capital, pay for high talent and risk stakeholder capital to feed america what she wants.  Is the stk mkt cap, 40 trillion or there abouts?. cooperate , join the  human race or don't, but take your anger welsewhere.

Sorry, CHK doesn't sell gas at the wellhead, follow instructions or live in the dark. 

Permalink Reply by wyalusing jim on March 31, 2013 at 11:34am

oh! i get it now!

apologies hump, i just didnt know how a discussion forum worked.

so according to your previous posts, in the absence of good information or contributing something of value to a discussion you should simply type lies about a poster who you dislike.

kinda like politics huh, and if we all were to do it that way we'd have about the same results too.

wj.

Permalink Reply by melissa humphrey on April 14, 2013 at 5:50pm

FWIW--

See Ludwig Wittgenstein, paraphrasing, “what we don’t know is all that counts”, or go research to find the missing or a sense of the missing elements. And apply intuition, the quality of intuition applied becomes your measure of success.

 

There is no market for gas at the wellhead- simple fact. Gas is not sold at the wellhead, common fact. In Bradford and vicinity the major operator measures production at the wellhead, transports pooled gas and sells at take-out connection point into the Tenn. GP or Inergy’s line these days.  The gas is marketed at point of sale.

 

Ahuuhh, not know which cubic foot is whose, but knowing how much gas is sold at point of sale, they formulate in a reverse equation determining price and quantities sold from each particular well. You can go to OK City and have it explained if need be.

 

Few to no companies knowingly participate in mass fraud, the public ones would be discriminated if caught, however some more than others are very, very aggressive in their business actions. A view, those that overplay, pay, sooner or sooner. My uncle whom looks at finances, notes, the CEO of a one of the major midcap E&P’s in NE PA lost 3 billion personal June 2008 to Oct 2008 nd sold his own company’s stock enmass at 12$ after buying much at 50,60-70. Now it is 20 or so.  Do you want an uncontrolled gambler running a company you have a stake in?  Or if a bank is paying an excess I rate, what are they hiding? Maybe perpetuating fraud that costs everyone.

 

If a check stub uses volume from the total prod of a well to calculate royalty due and another WI happens to use the volume which is their WI interest only, should the landowner go berserk and be sure its fraud>  maybe yes if he is sure the landman outfoxed him and corporate America is all evil.

And forth things go, life unfolds by the quotients we choose. . 

• ‹ Previous
• 1
• 2
• 3
• 4
• Next ›
• Page