Lein on property

CKH HAS A LEIN ON MY PROPERTY FOR 500 MILLION THEY SAY ITS AGAINST GAS OIL RIGHTS BUT THE WHEN YOU DO TITLE SEARH COMES UP WITH LEIN OM YOUR PROPERTY TRYED REFINACE AN NO BANK WILL TOUCH ME BECAUSE OF THIS AN YES I BEEN ON PHONE WITH THEM AN THEY SAY ITS COMMON FOR THE TO DO THJIS BUT ITS AGAINST GAS OIL RIGHT I FAX THEM THE LETTER I HAVE THEY SAID THEY WOULD LOOK INTO IT I AM IN BEAVER COUNTO OHIOVILLE BOR 15059- 724 643- 1803  WIL THIS ATTACHED TO MY HOME I CAN NOT DO ANYTHING SELL OR REFINACE  THE 500 MILLION IS CREDITLINE ALSO SO EVRYONE SHOULD DO TITLE SEARCH I HAVE FREIND IN FREEDOM PA SAME THING ON HIS LAND

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Permalink Reply by mark alters on November 26, 2013 at 8:00am

I think you need to talk to an attorney about that. Also call them back and tell them your going to file with the BBB. Do you have a lease through them?

Permalink Reply by Frank Nesmith on November 26, 2013 at 3:40pm

I think the only way to get this practice to stop is by going public and embarrassing them.

Permalink Reply by Garry L Miller on November 26, 2013 at 4:17pm

Frank the   the paper was here for 3 hours so it will go public

Permalink Reply by Garry L Miller on November 26, 2013 at 4:16pm

YES I HAVE Lease

Permalink Reply by Garry L Miller on November 26, 2013 at 4:17pm

Yes mark i have lease

Permalink Reply by Francine Booker on December 3, 2013 at 1:49am

Chesapeake Energy is probably the worse offender for putting liens on properties, but other drilling corporations also do the same. It's how they finance their operations.
Not all liens will be listed as the drilling corporation, sometimes it's listed as a related corporation. For instance, Aubrey McClendon the former CEO of Chesapeake participated in what was known as the Founder Well Participation plan. This allowed him to buy a 2.5% stake in every well being drilled. It would give him a nice return on the investment, but on the downside, it also means McClendon is personally responsible for 2.5% of the costs.

To handle this stake, McClendon set up a few personal corporations, among them are:

• Arcadia Resources, LLC
• Jamestown Resources, LLC
• Larchmont Resources, LLC
• Pelican Energy, LLC

He borrowed heavily against his stakes.

People with Chesapeake gas leases should check their deeds and look for those liens too.

Other liens on properties may be mechanic liens related to natural gas drilling. Typically, a drilling corporation will subcontract out work and not pay the subcontractor. The subcontractor will then place a mechanic lien on the property, unbeknownst to the property owner.

The only way a property owner will know about it is if they check their deed or it pops up on a check by a finance institution if the owner is looking to refinance or sell.

Unfortunately, the property owner is left holding the bag and is responsible for paying off the mechanics lien.

015334grltd9mPermalink Reply by 015334grltd9m on December 3, 2013 at 2:16am

Francine,

You are being either dishonest with your advice or uneducated, which is it?

Permalink Reply by craig on December 3, 2013 at 5:52am

Ron, There are too many people here that seem to have self imposed a clouded vision on this topic. 

Permalink Reply by Markus on December 3, 2013 at 8:23am

Ron -

Can you be more specific and explain what you mean by your reply to Francine?  

015334grltd9mPermalink Reply by 015334grltd9m on December 3, 2013 at 2:14pm

Markus,

Let me try it this way:

Let's say you lease my 10 acres for the minerals, you have the rights to the minerals and have to pay me royalties if you harvest within 5 years.  You paid me $50,000 for that right.  Then you turn around and borrow $100,000 from Francine with your credit and secured BY THE LEASE DOCUMENT for my minerals.  The collateral is the lease of my minerals only.  It has nothing to do with my house, nothing to do with my credit and if a financial institution feels otherwise , let's see it? 

I am not a lawyer but we have a lawyer as general counsel.  IMHO some here are trying to scare landowners without the facts.

Permalink Reply by Trapper on December 3, 2013 at 2:40pm

I'm picking up what you're laying down Ron.

Couple of thoughts come to mind. For one I think the bank is nuts for lending against those leases not yet drilled or producing , I mean they turn into vapor at the end of the term if not at least drilled to HBP. Bye bye collateral! But then again , do they know something we don't know about a time frame for frenzied drilling.....? IDK

Next is what if CHK can't pay and the Deutsche Bank has to foreclose? Who operates the wells for them and how do the produced landowners get paid their royalties? This would be my concern if I were in these landowners' shoes. Income from royalties could come to a screeching hault for who knows how long while all that is sorted out. Any thoughts?

015334grltd9mPermalink Reply by 015334grltd9m on December 3, 2013 at 3:54pm

The lending institution only has rights to the secured instrument.  If the producer is in default, the exposure is still the lease, nothing really changes, it is similar to lease flipping.  This is my experience.

 

Chip, here you go bro, Atty. Alden Chevlen, want a phone number?

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