Big trouble for Chesapeake

    This is part of a news piece from Bloomsberg, And I can contest to it first hand.

 

 

The leaseholders also accuse Chesapeake of consistently underpaying proceeds due under their leases. They claim it has refused to correct accounting errors that “typically” favor the company, some of which the leaseholders said they brought to Chesapeake’s attention in October.

The leaseholders are seeking the outstanding proceeds due them, a full accounting and disgorgement of profits related to McClendon’s “preferential treatment,” according to the complaint. They also seek unspecified punitive damages.

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Permalink Reply by JK on August 23, 2012 at 9:21am

Where is this happening?
Who is involved and when did this happen?

Permalink Reply by craig on August 23, 2012 at 12:10pm
Permalink Reply by PHILIP ANGELO on August 23, 2012 at 2:18pm

Matthew,

               Same problems with my check.  Prodution days are wrong, unit acre are wrong, volume # wrong, Deduction are crazy over 50%

Something just isn't right, Don't think they can be trusted. 

Permalink Reply by Frank Nesmith on August 24, 2012 at 2:49am

This is what I hear from almost everyone with CHK leases. Perhaps it's time for you folks to band together and get your own lawyer. I think this problem is HUGE! 

Permalink Reply by Schnoozie on August 24, 2012 at 6:16am

Wait until all of those who bought into the "Group Speak", (I loves 70's terms) see their first check if ever. Someone do the math, and how does this work out with 18% and no deductions.

Permalink Reply by Stan G on December 2, 2012 at 9:51am

Does any one know if anything has been done to try and resolve this problem?

I recently got my 1st royalty check in Bradford county, Pa and feel the same way.

CHK's deductions are 34% (w/o any taxes), Statoil is only 20% deductions. The production numbers and sale prices don't come close to matching. Can't wait for the state production numbers to come out. How is anyone to know if they are getting the shaft? (maybe I should say How can anyone know how badly they are being shafted?)

3uq96odaochmjPermalink Reply by 3uq96odaochmj on August 24, 2012 at 9:44am

Chesapeake is down and out financially, and they are trying every little sneaky trick to squeeze more $$$ from anyone that they could.  If that means fudging production #'s to the State and Lessor(s), then they'll probably do it - if they get caught via an audit from the State or class action lawsuit from the Lessors, then they'll probably come up with some "creative" accounting or blame some "new guy" for the accounting "errors".

 

Tricks - plain and simple.

Permalink Reply by WLW on August 24, 2012 at 11:12am

Other companies have been doing the same thing for years in Ohio. Thats how they got to be the number one producer is the state of Ohio. Keep you accounting records so screwed up the landowners can't begin to follow them. Buy leases that if search properly, are not even marketable. Then set back and collect the money rolling in and never hold up to the lease terms.

Maybe thats why they are JV partners with Chesapeake....... 

Permalink Reply by Finnbear on December 3, 2012 at 3:12am

Enervest?

Permalink Reply by JK on December 1, 2012 at 1:50pm

JJ, I agree with you.

CHK is tricky business all the way until they get caught yet once again.

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