AEP royalties are a disaster

I have another post on division order acres not matching my lease or county record problems with AEP.  I told them I would not sign division order till it was straightened out.  Guess what?  got a royalty check that still has the wrong decimal (shorting my acres) and a laundry list of deductions.  I have a no deduction clause in the addendums.   No transportaion, no gathering cost, no market enhancement costs and I think several other items, but they just took out what they wanted.  They assured me in prior communications, they knew of my no deduction clause and it would be taken care of and not to worry about it.   I'm worrying now.  I can see my attorney getting rich already.  Also the royalty check is for Aug.  The wells went into production back in June???  What happened to all of that production.????  To add insult to injury they did not deduct any state or federal taxes, (just ohio g/o severence tax) even though they have my W-9's and LLC employer ID numbers on file.  Waiting on attorney to call me back.  All we were expecting this week was a copy of survey report, not a royalty check.  (since no division orders were signed)??   Looks like another chesapeak.  I'll be speaking to others on this pad this week when I'm on vacation and I'll keep updating.  Curious to see if their acres, decimals are correct and what they paid in deductions.  Can't believe what a mess this all is.  Thought it was a nice windfall, but it's becoming a real pain in the butt...........

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Permalink Reply by nc man on November 12, 2014 at 11:59am

Yes, thanks, Brian. Do keep us updated. We are with AEU, also. Property is north of Rt. 22 and west of Skullfork Road. Haven't heard a peep from AEU in three years. My property is suppose to be in the "gold zone"?? Hope they decide to drill in my area someday, sooner rather than later!

Permalink Reply by Peyton Cheston on November 25, 2014 at 4:11pm
AEP was created just a year and a half ago.
Permalink Reply by LERRET on November 17, 2014 at 5:29pm

AEP ?  Did you not learn your lesson about McClendon at Chesapeake?  We called him a scumbag docket jumping landman back  25 years ago.  Did you expect him to change?  EVERY LEASE  should have a null and void clause if the lease is sold to AEP, Chesapeake, etc. etc.  Call 'em out.

Permalink Reply by nc man on November 17, 2014 at 6:29pm

Lerret----we didn't have a choice. We signed with Shell and Shell sold our lease to AEP.

Wish we could switch, for what I have read on this site about the owner! It sounds like this

company and the owner is a real winner. I don't know what to expect. Probably not too good!

Just hope he pays me my royalties. Of course he has to drill first! Three of five years gone and

have heard nothing from AEP.

New to this oi/gas world. Hope Mr. Aubrey doesn't find out about my naivety.

nc man

Permalink Reply by Bill Bergseid on December 1, 2014 at 12:25pm

If it's too much of a problem for you I will buy your interest.

Permalink Reply by Booger on December 12, 2014 at 10:55am

Brian - your last update (a month ago) stated that AEP is in the clear -

"The real problem has been exposed and it's not AEP (Utica)  it appears the problem is with Chesapeak (who I signed with)  They are not conveying all the terms of the lease to AEP.  AEP bought  leases from various companies.  Chesapeak  did not transfer all required documentation to AEP and there lies the problem.  Hopefully this will be resolved.  AEP is in the clear."

you also mentioned that the production started in June (2nd QTR) - yet the production reports show only 43 days of production in the 3rd QTR.

are you any closer to resolution? - any updates in the last month?

any info is appreciated - thanks

Permalink Reply by WATCHER on December 12, 2014 at 5:14pm

No updates as of yet.  Attorney is getting no where so far.

Permalink Reply by Booger on December 15, 2014 at 9:27am

thanks Brian...........do you still believe AEP is in the clear?..........what they told you about CHK does not seem realistic to me.

Permalink Reply by WATCHER on December 15, 2014 at 1:47pm

Sorry I just don't know anything right now.  It will be next year more than likely before I get any kind of updates.  Attorney says to give them 6 months to rectify the problem.  Then we take legal action.  He said he can't file a suit until we give them reasonable time to execute the lease properly and make monetary adjustments.  I'll post when I know something.   

Permalink Reply by Booger on February 3, 2015 at 10:37am
any update on this?
Permalink Reply by WATCHER on February 3, 2015 at 3:50pm

Sorry, no updates

Permalink Reply by Booger on July 1, 2015 at 10:26am

"Attorney says to give them 6 months to rectify the problem.  Then we take legal action."

watcher - been over 6 months...........did they rectify the problem?......did you take legal action?

......is there anyone else out there that has any info on AEP royalties? many more AEP wells producing now;

caston

lawson

lake

lake west

lake east

shugart daddy

tarbert

richland

whitacre

capstone

jones

lude

porterfield

nac

.......surely someone on gms should be getting royalties from AEP.

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