I recieved a letter from cheif oil and gas with my check.
Successful oil and gas drilling and development of the marcellus shale in the counties of northeast Pennsylvania has resulted in a significant regional over-supply of natural gas-exceeding both the requirements
of available markets for purchasing the gas as well as the available
Capacity of available pipe lines to transport the gas to more distent markets. THIS SITUATION HAS SERIOUSLY IMPACTED TO THE DOWNSIDE THE PURCHASE PRICE BEING OFFERED FOR NATURAL GAS IN THE REGION. THIS HAS BEEN PATRTICULARLY EVIDENT BEGINNING
IN THE MID-SUMMER AND CONTINUES TO THIS DATE.
CONTINUING TO PRODUCE NATURAL GAS WELLS AT MAXIMUM FLOW RATES INTO THIS ECONOMIC SITUATION WOULD ONLY EXACERBATE THE NEGATIVE CONDITIONS. CHEIF HAS CHOSEN TO REDUCE THE FLOW
RATES FROM IT'S NATURAL GAS WELLS AWAITING MORE RECEPTIVE
MARKET CONDITIONS . AS A RESULT OF THIS ACTION YOU WILL NOTICE
ON YOUR ROALTY STATEMENTS THAT THE VOLUMES OF GAS PRODUCED AND SOLD FROM THOSE WELLS AND, CONSEQUENTLY, THE
REVENUES BEING PAID TO YOU ARE ALL AT THE LEVELS YOU HAVE EXUBERANCED IN THE PAST.
CHIEF IS CONTINUOUSLY MONITORING THE SITUATION AND WILL RETURN ITS NATURAL GAS WELLS TO MAXIMUM FLOW RATES CONSISTENT WITH AVAILABLE PIPELINE CAPACITY TO TRANSPORT THE GAS IF AND WHEN REGIONAL GAS MARKET CONDITIONS APPROVE .
I don't see a letter, link, or attachment. Did you forget something?
It shoud have came through cj
I don't know for certain where you are, and can only judge by your screen name.
But for the SE Bradford/SW Susquehanna region of Pennsylvania I believe the letter's message is truthful. As compared with what is needed there, the takeaway stinks. This is being worked on vigorously, but a solution is not right around the corner.
At least as surprising for me as the letter's message, is that you continue to receive your royalties by snail-mailed check, and not by direct deposit. Now that's amazing!!
Frank your right about the check deposit they didn't offer it 6 months ago i hate to see how much more they will take out if the build more lines! This month 46 percent enhancement fees .
CJ I'm sorry for your loss. That is truly an obscene deduction from your royalties. What's happening to you is unconscionable, at least in my view.
Still, I appreciate your post very much. It is instructive for me to learn Chief is doing this to their Lessors. I had (wrongly) imagined only Chesapeake was that bad.
There is so very much gas in SE Bradford, but also far too much difficulty and unfairness for Lessors there.
Yes, Joseph, of course it is possible. It might even be to your benefit if you play your cards right!!
When they get to the point of developing the unit your land otherwise would be in, then that's time to reconsider pronto. If drilling is going to take place with you or without you, then you need to opt in without further delay.
"No royalties for you!"
Course there are a gazillion other considerations. To cite, from among many, just one example:
If you want to guard against having a well on your land, you would need to insist on a NSD (non surface development) lease.
Seems like my computer is all better now.
I'll tell Keith.