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Permalink Reply by R. East on May 19, 2011 at 9:10am

The first assignment made to Statoil was probably for 33% interest in your lease. I suspect, the second assignment was for 33% of Chesapeakes remaining interest in your lease. Regardless, Chesapeake probably remains the "operator" of you lease and you will receive your royalty checks from them.

 

Hope this helps........

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Permalink Reply by Deci Ruiz on May 19, 2011 at 11:20am

Thanks
I guess this is a good thing that 3 o/g companies are interested in my little piece of land (:
After you are in a unit what is the time line till you start getting royalty Checks?

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Permalink Reply by Deci Ruiz on May 19, 2011 at 3:14pm

Hi Paul , I don't live in pa. That is why it is hard to get info. But this website does help.
Why do they hold the royalties for six months? Is it because of the time it may take to get it (gas/oil)
to the market place?

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Permalink Reply by Daniel Morris on May 21, 2011 at 2:47pm

Try this explanation: Take some royalty checks. . .let's say a few million dollars worth. Now invest them in an interest bearing account. Six months later cash in. Keep (steal?) the interest payment and give the sucker....make that leaseholder.... the principal.

You pocket his earnings and he's happy to get a check.

Seems simple enough to me.

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Permalink Reply by bill h on May 21, 2011 at 3:02pm

ya, that sounds about right

 

(any ideas on how I might get my interest? )

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Permalink Reply by Daniel Morris on May 21, 2011 at 7:53pm

Does the word lawsuit sound familiar? Maybe a class action on contingency?

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Permalink Reply by bill h on May 22, 2011 at 1:59am

I've thought about it.  It worries me though, that they've got their hand on the spiggot... they could shut the well in, or cut back the flow on a whim...

 

Class action would be the way to go.  Any attorneys out there willing to initiate this?

Permalink Reply by Daniel Morris on May 26, 2011 at 1:39am

For the person worried about them turning off the spigot for spite:

Imagine a multi-billion dollar corporation turning the spigot off on a multi-million dollar investment? I can't.

Permalink Reply by bill h on May 19, 2011 at 2:20pm

deci, you're in the same situation as us.

 

chk and anadarko split the unit, roughly 50/50.   Then, stat gets roughly a third of chesapeake's half.

 

You'll probably be getting three checks, first you'll get chesapeake's, then, later in the month the other two.  As a very rough rule of thumb, you can expect a total for the month of about 3 times what the chesapeake check is.

 

ps. I'm assuming all the proportions are the same from one unit to the next...I'm not certain that's true but i think it is close.

 

Also,  our unit didn't get declared at the couthouse (and we didn't start getting paid) until about six months after production commenced.

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Permalink Reply by Deci Ruiz on May 19, 2011 at 3:25pm

Hi Bill, if I read your post correctly you are getting checks now. I was wondering how many wells per unit.
Is it 1 -4-6- per pad ? Do you think the oil companies are holding things up till the pipe lines are in place?

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Permalink Reply by bill h on May 19, 2011 at 11:49pm

Ultimately the pads will probably have roughly one horizontal per 100 acres in the unit.  Chk is currently only putting one or two wells per unit to hold the land by productions, then, they'll come back at some point in the future to finish drilling

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Permalink Reply by CA770N on May 20, 2011 at 12:20am

How do they get to hold for 6 months after starting production?  Most Chesapeake leases I've seen say they hold until the amount is over $50, so what is the catch?

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