How much are deductions draining your royalty check?

We seem to hear alot about Chesapeke siphoning off alot of deductions from royalty checks. How are the other gascos treating their landowners? Shell , Range , Hilcorp , Chevron , etc. , etc.?

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Permalink Reply by daniel cohen on July 22, 2013 at 1:03pm

Larry,

If you'd get back to me via email I'll get it out to you. It's kind of extensive, so I don't think posting it here would be appreciated. It's probably a good idea for us to be in touch anyway, since we seem to be gnawing at the same bone. My email address is:

cohendaniel64@yahoo.com

Dan

Permalink Reply by thelma cathleen hays on July 22, 2013 at 12:14am

6%, that was only severance tax's leased with chk, gross at well head 18%. No other deductions

Permalink Reply by Larry Livengood on July 22, 2013 at 12:23am

Thelma,

are you currently receiving royalties ?

Permalink Reply by Merle Wanck on July 24, 2013 at 5:19pm

20+ percent on a 12.5% royalty is pretty accurate for Chesapeake, but checks from 3 other partners in the production pool do not deduct except for tax purposes. My understanding is that Chesapeake is facing at least 3 class-action suits presently but will continue with the deducts until lawsuits are resolved. Our lease agreement speciffically addressed deducts in categorical terms that Chesapeake has simply dismissed. Not the greatest business partner's I'd say.

Permalink Reply by Gas Boy on November 8, 2013 at 10:45am

Chevron has one set of production numbers on the distribution statements for the first 6 months of 2013, and a totally different production number reported to the state (Pennsylvania) for the same period.  For a particular well in Greene Co., Chevron reported to the state close to 1 BCF in the first 6 months of 2013.  My distribution statements, for the same period, show only 302 million mcf. 

Either Chevron is overreporting numbers to the state, OR underreporting production numbers to their Lessors.  Which is fraud.

Anyone else seeing production numbers not matching as to what is being reported to the state??????

Permalink Reply by N Bohl on August 27, 2016 at 8:16am

The last reply here was almost 3 years ago. Does anyone want to add anything about this? I am most curious about PA and Shell. I saw an earlier post which estimated deductions at 35 to 50 cents per mcfe and I wondered if that has remained the same.

Permalink Reply by craig on August 27, 2016 at 10:10am

CHK has been taking 61-63% of my royalties since at least Spring 2015.

Beaver County, Pa

Permalink Reply by Larry Livengood on August 27, 2016 at 2:14pm

CHK took 65.4% out of the royalties this month.  They have been slowly increasing the deductions as time goes on.  

Now that the state court has denied CHK request to have the attorney generals case against them for illegal deductions sent to Federal Court, maybe something will progress. Although, I'm sure this is the first of many stalling tactics they'll use as they continue to take the deductions. 

Permalink Reply by Gringo on August 27, 2016 at 10:26am

Swepi- May 16 15% Tioga Co , Back in the good old days of high gas prices it was as low as 4%. 

Permalink Reply by scott peterson on August 28, 2016 at 1:05am

Anyone who was in a lease group thru KWG&D out of Canton can join the class action suit KWG&D has filed against CHK for abuse of royalty deductions.  

Permalink Reply by David Allen Lilly on August 28, 2016 at 2:14am

I have a close friend who signed a KWGD negotiated lease with Chesapeake, he and I are in the same unit and currently awaiting our initial royalty checks.

We will soon enough know if our producer is any more afraid of KWGD negotiated leases and or willing to deny the very accurate language protecting my royalty found in my lease.

I will be sharing all of this information.

Permalink Reply by jonathan M. on August 28, 2016 at 2:22am
Unfortunately they won't care what your lease says.

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