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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No news from me. Haven't heard a word from AEU since we signed with Shell in 2011. Just glad to see your post with the name AEP, in the question. LOL!

I don't hear much about AEU on GMS or any questions or comments posted from anyone leased with AEU. No one associated with AEU seems to voice an opinion or share, if they know, what is going on with AEU, in my spot of Londonderry Twp..

My mineral rights are located in the K&R property, off Skull Fork Rd and for four years have not heard a word from AEU. Only one year before lease runs out and have heard AEU is considering, strongly, not to re-lease with me. I am in THE sweet spot area and will not know what to do if AEU doesn't re-up with me before 10/16.

How great it must be to receive a royalty check! I can only imagine how that must feel! but I understand exactly where you are coming from.

Hope you get this straightened out. It is your $$!!

Just curious---------where are your mineral rights located?

nc man

Hi nc man

I have property on covered bridge road, which runs from Rt 22 to Skull Fork.  My land is held by production, but deep rights sold by enverest to AEP.  They did seismic testing last month on the property.  The closest wells are off rt 22, close to where rt 800 joins rt 22.

Want them to drill, but based on what have read about deductions, ect, not sure about the problems.  Something is better than nothing, but don't like being taken advantage of.  The only ones who will make out will be the lawyers and accountants.

doug baker 

nc man - this is not my thread - it is Watchers........his property is in the Jones well in Harrison county which was the first AEU to come on line.........and he was free with info for a while but been eerily silent lately.......hope they didn't snuff him.

Well, thanks all! at least I know a little about what is or is not going on around me. sure hope they drill before lease runs out!

My rights are near the Harrison cty. border, in Londonderry twp..

Doug,could you explain what you mean by your property "held in production"?

I contacted a guy at AEP, a few months back, and he stated that K&R, who owns the property, where my mineral rights are located, are in a Dormant Mineral Act dispute. He would not say anything else but that AEU was probably not going to re-sign with me.

Really do not understand what that really means. I guess it means no drilling on K&R's property! Lucky me. I was told at recorder's office, when I signed the lease in 2011, that my mineral rights were in the "Sweet Spot". Sounded good to me!! Would think AEU would want to re-lease with me.

Time will tell.

nc man

ncman, if you don't know about the Ohio Dormant Minerals situation, you probably should search it out. I have seen a lot on this forum about it. My minerals are in WV so this doesn't apply to me, so I don't know details, but it involves the possibility of the minerals reverting to the surface owner under certain circumstances. There are two laws, and some uncertainty about which one applies when. Good luck.

nc man

I leased my land in the 90's, the oil company combined my land with the neighbors and drilled a "typical shallow well" and we share in the royalty payment.  Since the well is "producing" it is considered "held in production". 

Thus when the landman came a knocking, I couldn't sign a new lease for the bonus money or higher royalty payments.  But my lease doesn't had any "deductions" which I thought was good until you read about the oil company's not following the lease, taking deductions and ignoring you and then you got to get a lawyer and spend money to what is rightfully yours.

Also as Nancy Mosley stated, there are threads on this site about "dormant mineral rights" that you can look up and read about.  Since you leased earlier I don't think that dormant mineral rights should affect you (not a lawyer just my opinion.  My opinion on dormant mineral rights is somebody withheld the mineral rights when the land was sold, the current land only owner doesn't own the mineral rights.  But if nothing has been done with in so may years, not sure exactly how many, then the current land owner can go to court and try and get the mineral rights.   When all else fails, get a good oil/gas attorney who has done it for many many years and ask. 

I contacted a guy at AEP, a few months back, and he stated that K&R, who owns the property, where my mineral rights are located, are in a Dormant Mineral Act dispute. He would not say anything else but that AEU was probably not going to re-sign with me.

Really do not understand what that really means.

It means that K&R thinks they own the same mineral rights you leased and is taking the issue to court for a decision. Hurry up and wait.

Did not mean to come across like I am in the dark over the Dormant Mineral act. Have read plenty. Already went through one step of the waiting process.

Hired an attorney in Sept. '14 and filed a" Notice of "Preservation", on my mineral rights.. Was told then, by K&R's attorney, that K&R was filing the abandonment papers against a mineral owner, close to my parcel, named, Dunne.

Could one mineral right owner hold up the whole drilling process? I guess so. They have for a few years now. Perhaps there are more mineral rights K&R is trying to claim. I know they own hundreds of acres in the area.

Your right Finnbear---next step----hurry up and wait!

Happy 4th everyone! We are blessed to live in the USA!

nc man

Have you looked at the paperwork when you purchased the land? It should say whether the mineral rights conveyed or not


True! That is what I think, also!

I do not own land. My Dad sold it in the 60's to a coal company but kept the mineral rights. He leased  his mineral rights in the 80's to an oil company.

K&R Conservation LLC., the current land owners, bought the land from the coal company.

I , too, believe it should have been quite clear on the purchase papers of the land whether the mineral rights were conveyed or not.

I know in properties I have purchased over the years, It was made quite clear, of who was the owner of the minerals, and it wasn't me! Why it was not clear to K&R, when they purchased the land is a mystery to me.

Thanks for your input!


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