Replies to This Discussion

Permalink Reply by 0ym9x5ag7ury2 on March 10, 2016 at 5:27pm

This is not unusual, since Chesapeake Energy has been shorting Ohioans for some time. I just got 50 cents per acre on Buck Well 1H in Carroll County Ohio.

What to do about it:

1) If you have a no deduction lease, report the lease violation to your producer, Stone Energy. Any lease violation must be reported by you per your lease, Certified Mail Return Receipt Requested.

2) Contact Maryland Lawyer Robert Sanders by doing an internet search for the Hope Christian Fellowship vs Chesapeake Complaint. He is the last lawyer on the last page of the Complaint. He may already have a complaint in the works for WV. He wrote the Hope Christian Fellowship complaint/lawsuit from my evidence.

3) Go to the WV Attorney Generals Office on line and file a theft report. Make sure they don't throw out your electronic case number like they did to me in Ohio.

4) Contact the WV Governor and let him know what is happening.

5) If the Gov & Atty Genl say they can't help let me know, they may be corrupt which will require another letter.

6) Contact the WV Tax Commissioner by letter and explain what is happening. The state is being shorted income taxes from royalties that you should have been paid.

7) Contact the WV Department assigned to monitor WV Appalachia Counties (in Ohio he works for the governor) and inform him of your royalty issue.

8) The US Justice Department, Washington DC/US Attorney Generals Office. When they are finished with Chesapeake Energy they will more than likely go after the O&G company that has the most complaints.

9) Contact the President of the US. He may not respond, but he needs to know that Appalachia counties are being stolen from. Tell him that the Federal Government will be able to stop paying into Appalachia if they ensure O&G companies pay the royalty due to WV landowners. 

If you are good at reading WV laws, look for the equivalent of "Theft By Deception", this will apply if your lease is a  no deduction lease, your Royalty Statement shows no deductions in the payment column, or the deductions are excessive, which they appear to be.

Most of the landowners on Buck Well 1H & 6H have 17.5% Gross, No Deduction Lease, but Chesapeake has been stealing from us since July 2014.

I have taken all of the steps above plus wrote an extra letter for Ohio's public officials who said things like: "I would like to help", "The laws of Ohio don't apply to Oil & Gas Companies", and "landowners are confused about their royalty statements or you don't know how this all works. 

The lawyer Rob Sanders argued deductions from Ohioans royalty checks by Chesapeake on Feb 5th of this year in front of the Ohio Supreme Court. The decision has not been announced by the Supreme Court, but Chesapeake Energy is hoping to Revise our leases by taking all of our royalty using the excuse that there were more bogus deductions than royalty.  

I have land in WV, so let me know if you need help. I'd like to get these O&G companies straightened out before they start stealing from me in WV as they are doing in Ohio. 

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Permalink Reply by Bernie Horabik on March 11, 2016 at 5:20am

Can you take a photo of the royalty stub and post it?

I'd like to see how that is broken out?

Thanks

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Permalink Reply by bob on March 13, 2016 at 3:14pm

We have a lease with Stone in the Pribble unit.  We received a small check last week and it appears fine but it is a 2010 no cost lease.  What unit is yours in and is it a cost free lease or one of the newer ones?  82% seems very high to me!

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Permalink Reply by st. croix on March 14, 2016 at 2:59am

We are across the river from you in Monroe county. Stat oil has been taken about 92% from us and oil(condensate) is suppose to be free of cost. They are pulling load after load off the dangel pad. Talking to a lawyer and will have a meeting with stat and proceed with an audit. It's all bull!!!

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Permalink Reply by 0ym9x5ag7ury2 on March 15, 2016 at 12:50pm

St. Croix,

        Any product taken from a well should pay a royalty. If a well product isn't mentioned in your lease, then the O&G company has no right to take it. They only get what is in the contract, contrary to what they may have told you.

In Ohio the NGLs are being taken free, but that is theft and will be accounted for soon enough by way of the laws in place in Ohio.

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