CHK Changes my Royalty Interest Percentage?

Add this one to the pile of complaints about CHK?

Recently I had a few extra moments to review my monthly royalty statement (check stub).  Natural gas, NGL's, & Oil production appear on the statement.  Oddly enough, my Royalty Interest Percentage had decreased for Natural Gas and NGL's only since the last time I looked at the the statement (approx one year ago).  I could not figure out why  or how that percentage would have changed.  Did the production unit change and CHK did not notify me?  Thats the only thing I could think of.  So I asked CHK via email.

Here's what little they cared to share with me:  Starting with 03/2017 production, this well went into make-up status. It was originally overpaid in prior months so we had to decrease the decimal in order to make up the overpaid volumes.  This is why the payment decimal decreased on the recent check stub.

So what is "make-Up status" you may ask?  As indicated above, for reasons unknown to me, they overpaid royalties in "prior months" and are now recouping those royalties prospectively by reducing the royalty interest percentage in subsequent months beyond March 2017.

Does this make any sense?  I dont know.  As you may know, they constantly are making retroactive adjustments to current month royalty payments (i.e. showing some adjustment to either paying quantity or price pertaining anywhere from say 3 months ago to even years ago).  Why dont they just do this instead of reducing the royalty interest percentage?  So now in addition to retroactive adjustments they are doing prospective adjustments?

Enough venting.  Has anyone else had this happen?  With CHK's lousy reputation, it is only natural to think it is just another scheme to pick your pocket.

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Permalink Reply by Brian Werner on March 5, 2018 at 9:44am
I have noticed similar changes on my stubs. The CHK explaination does not make sense because they are constantly making their "corrections" every month. With regard to the corrections, I often get a whole page or more of changes each month and they typically go back up to four years (basically to when they drilled the well). I keep track of all of the changes in a spread sheet and these are not one time corrections. They in many cases have "corrected" the same number four or five times so these are not really corrections. After 4 years one would think they could figure out how much they sold and at what price. The "corrections" almost always result in a royalty reduction but in a few rare cases the changes were positive. I also see the Royalty Interest percentage changing, which seems impossible unless they are changing the unit size.It appears they may have found a new way to reduce the landowner's share.
Permalink Reply by bo boboski on March 5, 2018 at 10:23am

Eclipse did the same thing to a lot of folks around Salesville, ohio. I guess they do whatever they think they can get away with. 

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