nat prices higher royalty checks lower from Chesap.

I have noticed in our past royalty checks that Chesapeakes checks are paying lower each month while stat, Mit, and Anadarko are rising.  I dont understand why, with the price of nat gas rising why arent Chesapeake royalties rising like the rest of the companies.

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Permalink Reply by Brian Day on March 24, 2013 at 2:48am

I don't think top leasing ussually delays drilling by the primary company.  The primary company gets nervous about the top lease and drill something to get you at tleast HBP before the terms of your first lease runs out.  The initial payment of the top lease can truly be free money.

Permalink Reply by New Field Farm on March 24, 2013 at 4:40am

What is top lease?  Sorry, I just don't know what that means.

Permalink Reply by evan on March 24, 2013 at 5:10am

A top lease is a company coming in when your old lease is about to run out of time. This new company will make  offer to you and if your old lease runs out and your not HBP then the new company will take over your lease. They usually offer a little money per acre just to top lease.But you have to have a lease with wording in it where the first company cant renew it. 

Permalink Reply by Kathleen on March 24, 2013 at 3:40am
Are you in a net lease? CHK is also known to take more deductions than any other co and I can see how they easily get away with it. Every co has different costs but CHK will charge you for everything.
I wish CHK would sell off parts of my minerals (Total owns a portion but I'm not sure that set up will give me checks from Total) so at least my loses from CHK would be less.
In time I'm hoping the new management at CHK will see having all these lawsuits against them from mineral owners is not worth it and gets in line with the other co's when it comes to deductions and pricing.
Time will tell and I think if they do realize this it will start this year. McClendon is gone this month, right?
I wanted this man at the helm when I was leasing but not when I'm receiving my royalty checks.
Permalink Reply by robert g. weaver on March 24, 2013 at 4:09am

I never thought of it that way, thankful they did portion off our well to other cos. or our pay would be lower yet.  I have heard before CHK will deduct for anything they possibly can and then some.  I only can hope they get caught up with someday and have to answer for it.

Permalink Reply by evan on March 24, 2013 at 4:18am

My situation is very unique.I leased almost five years ago with Anshutz and I only had fifty % of my mineral rights. Recently I acquired the other half. Chesapeake is putting together a unit to drill, which includes me. They want to lease my other half and extend my old lease. Their only hold up  is one person in the unit  has unitization taken out. They want him to allow them to unitize but they wont give anything. It would be nice to get things worked out. In my old lease its 12.5 per. net. The new lease would be m uch better. I was  curious how they are to sign with

Permalink Reply by wyalusing jim on March 24, 2013 at 6:11am

chk is tough to get a good lease with these days unless you have something pretty special.

if you are given the choice of the market enhancement clause and their producers 88, i'd take the market enhancement clause, it hasnt been decided yet whether or not that clause will hold up for chk in pa. so i'd rather have a chance with it, than no chance of having a cost free royalty.

chk drills good wells. yes, if they think your lease can be interpreted in their favor, they will take maximum advantage of it. other companies do too though, they're not all that special as far as that aspect goes.

chk is the company that everyone loves to hate. personally, i would lease with them over several other companies, all else being equal.

if you are in pa, be careful about leasing to companies other than the one which will drill the wells you will be in. there are stranded leases in my area. folks who didnt want to lease with chk and didnt. their land is left out of units that surround them and it may be years before they receive a royalty check. remember, we currently have no forced pooling in pa, so these situations can and do occur.

wj

Permalink Reply by evan on March 24, 2013 at 6:47am

Thanks for the info. Im in Guernsey county Ohio by the way

Permalink Reply by Kathleen on March 24, 2013 at 9:44am
Hi Evan,

How can or why would anyone remove unitization? Maybe I'm confusing words but do we all not need to be in a unit (unless we are very large landowners) to get our minerals working for us.
I know this isn't something you did and its someone else, I just don't understand it.
Permalink Reply by evan on March 24, 2013 at 10:24am

The reason he took out unitization is we thought we was dealing with clinton wells.  Five years ago no one around here heard of utica . He just took it  out cause he has a lot of acres and didnt want to be tied up in someone elses unit. Worked out good for him i guess. Yes you would have to be in a drilling unit to get any use out of your minerals.

Permalink Reply by Kathleen on March 24, 2013 at 1:13pm
Thanks, I get it now. I think in time it will help him but until CHK caves which they have to do it sure hurts the neighbors :0(
Permalink Reply by Robin Hood on March 24, 2013 at 11:41am

Frank, you hit the nail on the head, Chesapeake uses the court as a weapon against the landowners, knowing when push comes to shove MOST of us little guys will eventually end up in the corner sulking and venting on websites like this.  The cost of fighting the big cats and dealing with our jackal lawyers is not for zebras.

Having said that, this website is great for strengthening our cries of fairness.

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