Is anybody noticing the deductions by Encinco. In addition to some taxes they are now deducting for “production costs”. When asked she said all leases are being reviewed and after that, the deductions would be refunded if they weren’t to deduct them. Said it would take months before they are done. Mine amounted to almost 1/3 of gross. 

Wonder if this is their way of getting cash and then will pay back months later. I didn’t notice it until now as they didn’t get the online owner info working until now. Waiting for June’s report but sounds like they are going to keep up the deductions until they finish review of all leases.

Is there anything we can do

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Had to come back to this post when I realized that the Bonus amount should have been 25,000 per acres since that is what I saw as the going Bonus for those in the know in Texas.

I slipped a cog and wrote 25% instead of $25,000.  Sorry bout that.

Mark, That reminds me, and I may be repeating myself, Most of the Wells I have been in, Chesapaeke claimed I only had 1/2 acre in the Unit. Now all of the land is under production due to 3 laterals placed between 2 Other Well Pads, and I still don't have but a few acres under production based on my pitiful ownership decimal fraction.

One neighbor has 14 acres squarely under the 3 laterals but those thieves won't pay for 14 acres.

This tells me that if every US Landowner would speak up and report the number of acres under production, we would find how SEVERE this theft actually is.

My Jefferson County Ohio buddy is now in his 80s, Chesapeake didn't bother paying him for his 0.5 acres probably due to his age. I couched this farmer using ODNR understated volumes of well products so he could prove his Well wasn't dry.

The CHK response was, "You haven't made $25 Yet so we won't send you a check (ever). 

Hell has a special place for all who have made this theft possible. Our President Trump and Our Military will arrange the meeting of some of these folks with their maker and their Justice.

EVERYONE who's lease was bought out by Encino in their CHK acquisition is in for a battle. I had my lease prepared by's iron clad...GROSS, NO DEDUCTIONS....but after speaking with a couple of attorneys it was explained to me that Encino uses some bullcrap arcane language in old Texas drilling laws about "at the wellhead"....if you have a KWGD that can be found towards the bottom of page 2....the problem is they stop there. If the knuckleheads would continue reading to the top of page 3 they would see the words "without ANY deductions or expenses except for lessee to deduct from lessor's royalty payments, lessor's prorated share of any tax, severance, or otherwise, imposed by any GOVERNMENT body. For purposes of this lease, "gross proceeds" means the TOTAL consideration paid for oil, gas, associated hydrocarbons, and marketable by-products produced from the leased premises." ..CAN IT READ ANY CLEARER?!?!?!....To make it worse the money Encino is stealing from us goes to Canada....EAP is 98% owned by the Canadian Pension Plan Investment Board....I contacted them yesterday to let them know they and their partners are in breach and they are going to get hammered. I was fortunate enough to sell some of my rights to a POWERFUL energy hedge fund who are connected to my lease and are in our unit....their attorneys are on it as I type this....that and armed with a KWGD lease we will prevail....btw, dont waste your time talking with anyone at'll get the company mantra from pleasant but clueless individuals.

I hate to break it to you, but 'at the well head' isn't some old Texas drilling law.  It's been utilize in many many states and just another form of a 'net' lease, as is 'market enhancement' language.

Post production deductions and 'shrink' occur between the "well head" and the sales point. 

The way you want the lease language to read is "measured at the wellhead", thereby eliminating any shrink and "priced at the sales point" with no deductions from the price at the sales point.   Anytime you see 'at the wellhead' anything else about deductions is moot because by the time you get to the well head as the pricing point, all deductions have been already taken out.  So they can pay you gross at the well head, and deductions for post production costs would have already come out of the check.

I doubt your powerful hedge fund is going to do anything, because those powerful attorneys will look at the language, see 'at the wellhead' and say "Eh, those hosers got us on this one".  They probably interpreted it properly when they reviewed your lease prior to purchasing.

No one can dispute that how ever these O&G companies choose their Lease Wording, or how they interpret 15 pages of Landowner Protection using one sentence to cancel the whole lease, Theft and RICO Fraud have taken place Universally across Our Nation.

I'm Afraid Domestic Oil and Gas will soon be TRUMPED By the Executive Orders I have listed and Our Military, NSA, Q and Our President Trump. There will be no deals, there is no escape, there is Only the Pain of Being caught and Justice served.

I make this promise to every US Citizen, The Corruption Ends Soon.

I ain't buying it Jeffery....the biggest crooks in the industry is CHK and they did NOT take any deductions and they paid exactly as the KWGD lease mandated....if ANYONE would have tried that wellhead crap it would've been CHK....and they didn't....and btw, read the second link you posted in its entirety.....there are courts that dont side with those losers stealing from us.


     Chesapeake was taking deductions all along but they didn't tell us they were taking deductions. The Royalty Statements showed No Deductions which is Federal Mail Fraud to defraud by mail, and Ohio RICO Fraud on the 2nd month of production on each well. 

Theft by Deception from 2 Ohio Citizens, 2 Months in a Row is Ohio RICO Fraud.

This is discussed in the Hale vs Chesapeake Energy Arbitration found on line. The Same base document was used in the Henceroth vs Chesapeake Energy filed in Federal Court in Youngstown.

Every Ohioan was paid chump change for VERY VALUABLE Natural Gas Liquids then the Chump Change was stolen by applying NGL Processing Fees that were/are Inflated since CHK owns the Processing Plant although they don't admit it, They Pay themselves very well, then deduct out the NGL "Royalty" Payment which is cancelled, then the remaining Processing Fees are deducted from Oil and Gas Royalties that were Fraudulent in VOLUME Produced, PRICE Per Unit and more.

Chesapeake applied this same fraud to PA Landowners using their Pipelines which they paid themselves very well for The Products they claimed they purchased at the Well Head then traveled down their pipe lines.

Don't forget that Chesapeake bought Williams Partners or Brothers Pipelines, then hid all of their Pipelines under that name. doug lawler ceo of Chesapeake Immediately released a News Builtin that Williams Partners had been overcharging Chesapeake for the use of their pipelines and now the cost will be reduced by some minor amount. I doubt he reduced the charges, it just made him feel good. Elite Kings feel like gods when they abuse the little people, sort of like Betty at Encino's  home office. Tease then reduce the royalty further and enjoy the suffering it should have caused the Landowner. I just put a fire under my butt and go on the offensive applying the laws available when abused.

From the documents signed (bad leases, bad Right Of Way contracts) to the phony division order, acres in the Unit, Volume of anything produced, Value of Products stolen, cost of any compression, energy use, Processing fees, pipelines used, the actual sale at the end of the line, the Derivatives the stolen cash is invested in and more IS ALL stolen from We The People by Chesapeakes ABSOLUTE Greed & FRAUD. Anyone who claims they were paid fair anywhere on their Royalty Statement have not done their homework. Much has been hidden from us. I've seen most of the fraud used. .

That will all become Water under the bridge when doug and company take their last & free flight of their lives to GITMO. 

No one in the US has been paid the Royalty negotiated in their leases. Chesapeake needed Our signatures on a document, promised us lofty Royalties then put the document in a file drawer never to see the light of day again unless they need Your Signature to defraud You further or You go to court.

The judges play fair at first, but when the money is right they will go against their own rulings, that's how the Hale Arbitration was swept under the Rug. The Judge can sue me, but before the case gets to court, that judge will be indicted for Corruption like so many high level Powerful but ignorant people who have committed Fraud, accepted bribes and shared in Our stolen Royalties.  They will all make the news after the cuffs are on them. I already know who they are, and if anyone should be missed, a Good Citizen can fix the oversight with an email or letter. The DOJ is always open for business.

No One Gets a Deal, No One Escapes Justice, Everyone Corrupt has a date with the Hammer Computer, Our President, Our Military, the NSA, and will get a fair Military Tribunals per the Uniform Code Of Military Justice.

Those who read my words who have shared in Chesapeake's Take:     Pray to God for Forgiveness since You won't be getting Forgiveness from those who will Judge You For Your Crimes. You will spend Your life in Prison if You are lucky, some will hang, and You'll be protected in Prison to Your last day, since it won't be safe to walk the streets when those You cheated for so long become aware of Your Crimes against We The People. 

This is the most extensive Fraud ever conducted on US Soil. We are lucky we haven't been billed by Chesapeake for the Theft of Our Well Products as was done in PA. 

For those who make a living off of Our Backs, be careful how You respond, those who scream the loudest are the ones who try to cover their guilt.

I've bought many many acres of minerals in my time and I interpret 'at the wellhead' as exactly that.  What's the value you receive at the wellhead - sales point less costs to get it to sales point.  But just my opinion, believe what you want, interpret how you want, and good luck...

When those laws were written about at the wellhead , some guy came once a month in a model T truck and picked up what got derricked out of the ground....these are different times just like the 2nd ammendment was talking about muzzle loaders when it was to level the field in the event a militia is called you NEED ar15 and the like.....and hey HALE, when CHK was paying me my checks were that Encino is paying me 85 percent has vanished

Your Huge Checks, if you use $13 Million as the annual take on each well you are on then multiply $13 Million by Your Ownership Decimal fraction ( typically 0.00065 for most) You will see that what You were paid is much less than the Actual Amount You should have been paid.

Chesapeake does not discriminate, they steal from the US Department Of Interior, All Indian Reservations, Every Shale Play State and every Landowner/Royalty Owner on their books in those states. The Theft is Universally applied to all. Greed is like that, it's hard to stop stealing once the Rewards of Your theft are realized. 

A fool and his money are soon parted. We The People have played the fools. 

To give you an idea how bad it has become (and I almost suspect it started with the last month with CHK) my royalty check peaked 02/28/2019....that was the 5th month from initial production....on 03/29 it dropped 1/3....on 04/30 (last month with CHK) it dropped ANOTHER 1/3....on 05/29 (first month with Encino) it actually went up a few hundred dollars....then on 06/28 those aholes dropped it by ANOTHER 1/3 and then this last check dated 07/28 dropped by almost in 5 months, and after less than a year since initial production my income has been cut by 85%.....AIN'T GONNA HAPPEN YOU HOSERS, TAKE OFF, EH?

Agreed. Mine has gone down 50% each of the last three months. I know nat gas is down, but on ngl's, the deductions are almost greater then the revenue. Last month ngl's were $.31/gal as I recall, and deductions were almost the same costs. Maybe I'm glad I'm in the 3rd year of production so I can't lose as much even though the wells seem to still be producing pretty good.


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