General Royalty Question

If you are in a unit that is developed by a different gas company then the one you have your lease with, who do you receive your royalty check from?  Example:  Chief drills the well but lease is with Chesapeake.  Does Chesapeake generate the check and are they allowed to take out  deductions even if it is not their well?  Just wondering if anyone has experienced this.   Thank you for any information since this looks like what might be happening to us in near future.

 

 

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Permalink Reply by jnm on July 18, 2013 at 2:30pm

Your check will come from Chief

Permalink Reply by Clinton44 on July 18, 2013 at 4:37pm

Hi Barbara,

It all depends on the joint venture/partnership agreement that the gas companies have made between themselves.

We are in two seperate units each having the same joint venture partners and there are three seperate partners who all split percentages of the gas that is produced.

We receive checks from all three of the partners.

In the beginning we were being paid by only two of the partners until the third partner decided they wanted to branch out on their own and market their own gas.

All very confusing, and the people paying you can change at anytime if leases are sold or flipped between companies and you will not know it until you see checks or receive division orders from the new partners.

Permalink Reply by Barbara on August 9, 2013 at 8:17am

Thank you for your reply!

 

Permalink Reply by Barbara on August 9, 2013 at 8:18am

Thank you for your reply!

Permalink Reply by Don C on August 10, 2013 at 2:18am

Also to find if your lease has been flipped or changed look on line in your county recorders office.( Ohio resident)  This has been a good tool to help discover if your in a unit also.

 

 

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