Maybe not enough politicians, but they successfully bought the WV Supreme Court
As I understand it (not an attorney but have read several of these lease assignments and partial assignments) the owner of the deeper rights can develop those areas but is bound by the terms of the original lease (royalty %, payment frequency, things like that). Since it is a deeper well that requires a pooling of multiple leasehold areas (using the terms loosely) it is usually but not always the owner of the deeper rights who would request a modification of the existing lease to allow pooling with other nearby properties. One or more of the shallow wells on the original lease must be in continuous production (sometimes an allowance for breaks in production in the lease) for the entire lease to stay in effect. Sounds like that is the case here.
Sometimes they drill one to see if it is good, then drill all the rest.
Chesapeake has been treating us better in west central Bradford count,pa.they streamlined their transport costs so now our deducts are not nearly as high as before.july production check from chessy was around 2.42minus deducts.
NO,THE ACTUAL PRICE PER MCF BEFORE DEDUCTIONS.
What percentage does Chesapeake take out for deductions? I have heard it can be as much as 40%
actually ,it goes as high as 60 % sometimes;usually when the gas price is exctremely low.however,this past winter,even w/ deductions,chk came out price wise ahead of all other gas companies.we averaged around mid to upper 3.00/mcf range for winter gas after all deducts were taken off. we were paid a gross price of around 4.00-4.50 for winter gas.like i may or may not have said before,currently our deducts range from 18% to 26% depending on volume of production and price.my opinion was all the lawsuits and settlements thrown at them plus the better financial situation after crazy cowboy mclendon was out of the company [the founder and former ceo that spent money like a fish] changed our situation for the better.so,never give up the david vs goliath fight against these big guys.