is the ALOV lease as strong as it appears?

just wondering if anyone who signed an ALOV lease with CHK have been seeing any deductions on royalties?...........seems the 2 pages of gross language is pretty strong.......but also hearing a lot about CHK ignoring lease terms.

 

also wondering if anyone with an ALOV lease has had their lease sold, transferred, conveyed or assigned by CHK, and if so, were they notified beforehand and did they receive the "additional bonus" as outlined in the lease?

 

 

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0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on September 7, 2013 at 10:20am

My neighbor had a lawyer look at the "Unit modification amendment" when it came through our neighborhood, and he said there was more than a unit size modification. Also how can you be sure the person you are talking to is not a landman acting as if he is a Chesapeake representative.

Sign anything brought to your door on your own and you will be signing away your good lease. Count on it. 

 "Money (that you have and someone else wants), brings out the worst in people" 

 

Permalink Reply by FairMktValue on September 7, 2013 at 11:02am

If some one would be so kind as to enlighten a relative "newbe" to the site - What is an ALOV lease?

I am assuming this is in NE Pa. just because CHK has such a large presence there. I am in SW Pa. and am particularly interested in a strong "no deductions" clause.

If someone has link to that lease or even just the "ND" clause and would post it, I would be forever grateful.(well... at least I might do a little happy dance! LOL)

Thanks

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on September 7, 2013 at 5:33pm

It was an Ohio landowner group that signed leases in numerous counties across the state.  They had the "best lease" in Ohio, or so the story goes.

Permalink Reply by dr j on September 8, 2013 at 4:40am

Here is a link to their site.   There should be a copy of the lease available. 

http://alov.us/

Permalink Reply by Hunter 1 on September 7, 2013 at 2:00pm
Anyone heard of the SURE group (Ron Carlton) having any luck signing their acreage up for Carroll, stark, columbiana, Harrison counties.
Permalink Reply by Alan Bowers on September 8, 2013 at 7:05am

If you check your ALOV lease, if it was part of the first group of ALOV Leases with CHK (April 2011), Article VII Section 7, which is titled Assignments, assignment to an "affiliate, subsidiary, or internal partner, joint venture partners or in consequence of a merger or amalgamation" does not require Lessor's consent.  Chesapeake Exploration LLC did transfer a percentage of many of the leases to CHK Utica LLC and to Total EP without notifying the lessors beforehand.  From what I could determine through my research back at the time of transfer Chesapeake Exploration LLC owned part of CHK Utica LLC and Total EP was to be a joint venture partner.  The portion transferred to Total EP appeared on The Recorder's Office transactions on 05-04-2012 in multiple counties.

Was your ALOV-CHK Lease from the April 2011 batch or was it one of the later ALOV-CHK Leases in 2011 or early 2012?

Which part of the Lease are you referring to with respect to the "additional bonus"?

With reference to "CHK ignoring lease terms" are you referring to the Anschutz Leases that CHK acquired and resulted in a lawsuit between the Landowners and CHK?

That suit can be researched on the Columbiana County Courts website under case 2012 CV 00136 and the subsequent appeal, case 2013 CO 00005. Both cases can be followed through the Columbiana County Common Pleas Court Dockets.  Part of that dispute was the landowners claim that CHK did not honor Paragraph 14 of the Anschutz Lease.  The last entry on the appeal that I saw was from 06-18-2013 and they had not scheduled the Oral Arguments of both sides for the case.

Permalink Reply by Booger on September 9, 2013 at 4:33am

Alan - you are correct on the assignment section.......I was mistaken on the additional bonus.....the additional bonus was in an earlier version of the ALOV lease but did not make it into the final.

as far as "chk ignoring lease terms".....that is just a general reference to all the bad press about them taking deductions from royalties when the leases prohibit it.

again, just hoping that someone with a ALOV in production could clarify if they are seeing deductions in their royalty checks.........but maybe there are not any (or many) producing wells that involve ALOV leases yet.

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