Should I ask for no production costs

We have inherited an acre of land which isnt much but Chesp. has called telling us it was found in a piece of land my grand dad had yrs ago but didnt get sold along with the rest of the property.  Now the acre is already in a producing well for over a yr now.   We get a 20 per cent royalty but I asked the landmen who called us if we had to pay production cost and he says that Chesp. will only lease it from us if we pay production cost bc the well is already producing and the other heirs have signed their leases, there were 4 of us in all.  I did tell him that if we pay production cost then Chesp. could take as much of the 20 per cent as they wanted bc we have 23 acres already signed and made that mistake before.  Is the landman right we will get nothing if we dont sign agreeing to the production cost and just be left out entirely. 

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Permalink Reply by robert g. weaver on March 13, 2014 at 3:41am

I should add there was a little over 5 acres in all, the 1 acre is our share after the land was divided.

Permalink Reply by Billy Park Whyde on March 13, 2014 at 4:28am

"We get a 20 per cent royalty but I asked the landmen who called us if we had to pay production cost and he says that Chesp. will only lease it from us if we pay production cost bc the well is already producing and the other heirs have signed their leases, there were 4 of us in all."

  Halt, they drilled through property that was not even leased?  At that point it is time to call an attorney as it is a day late a dollar short for them to be making demands upon a requested lease!

  BY the way anyone know how it turned out for CHK on I believe its was the  BUELL WELL?  As I recall it Buel had bought the property but it ha been leased to a coal company that had leased it to CHK. Buel himself thought that he was dead in the water but some one had done a bit of investigating probably  a wildcat attorney and found that the coal mine company lease rights had expired so they had no right to assign a dead lease to CHK to begin with! 

  Last I heard a judge had said OOPS big mistake anyone know how this panned out?

Permalink Reply by robert g. weaver on March 13, 2014 at 7:41am

Yes the well has been producing for over a yr. and we didnt even know we had an ownership in it until the landman called upon us last wk.  I dont know for sure how big the pool is, we did ask the landman from Chp. to send us the lease as we would like to read it over, not signing but just looking at it.

Permalink Reply by Paul Martinelli on March 13, 2014 at 10:00am

I believe they settled out of court with Mr. Buell doing quite nicely.

Permalink Reply by Frank Walker on March 13, 2014 at 8:59am

Robert

It's important for you to realize Chesapeake is a dishonorable company and enterprise.  They are not even close to being honest.  Instead they lie, cheat and steal at every available opportunity.

It's possible a good lawyer could enforce your will on them by threat of legal action against them for the theft they already have committed.  This especially if you can sue higher ups in their company.  Absent that, if it's only a civil action with no threat of jail for Chesapeake people, they will tie you up in court until you go broke paying the legal fees.  That's what they do.

As for any land man representing Chesapeake:  If the land man's lips are moving you are hearing lies.  And after the land man leaves your home it's gonna require really vigorous scrubbing to clean off the residual slime left in his wake.

Permalink Reply by wyalusing jim on March 13, 2014 at 9:43am

nice tirade frank, but before you go giving anyone advice on this, I suggest that you research how partial mineral interests stand, legally, in cases of divided interests.

it will be enlightening for you given your previous reply I am certain.

wj

Permalink Reply by robert g. weaver on March 13, 2014 at 10:13am

I know chsp. is dishonest dont forget we have 23 acres already leased in with them from 5 yrs ago and fed up with their crap as a lot of us are!  My husband says if we dont sign the lease we will end up getting nothing, I just dont know what to believe at this point and it is only 1 acre, I know with deductions being taken out of our 20 % they will take and take until we get barely anything.

Permalink Reply by Frank Walker on March 13, 2014 at 2:22pm

wyalusing jim

Fair enough.  I assume you're suggesting Chesapeake's taking of the gas without payment is legal because the other partial owners have agreed.  If that's your point it's a good one and I didn't think or know about it.  Looks as if Chesapeake rips another one and wins again.  Typical.  They make me sick.  They're disgusting scum.

Permalink Reply by wyalusing jim on March 14, 2014 at 1:41am

not suggesting anything except that before you offer advice, you make sure that you are correct.

it's likely that a good bit of your sickness has been brought about by a lack of understanding. there is a cure.

wj

Permalink Reply by Doug Duffield on March 14, 2014 at 1:45am

Pop pop !!

Permalink Reply by Frank Walker on March 14, 2014 at 4:05am

Whatever.  I view your defense of Chesapeake as a sickness.  Fortunately it's an illness for which wiser landowners today have discovered the cure.  There are few exceptions remaining, but you surely will be the last one cured, if it ever happens at all.  I feel sorry for you, and I wish you good luck.  Dude, you're really gonna need it!!   

Permalink Reply by wyalusing jim on March 14, 2014 at 8:53am

lol, you always resort to false accusations and innuendo as your last line of defense.

I'm not defending any company, if chk has broken the law, then I'm sure that they'll pay for it. with so much constant scrutiny, their legal transgressions won't go unnoticed.

and luck hasn't got anything to do with any of this. good sense and a willingness to perform one's due diligence is what it takes to come out ahead.

conversely, emotions will be your undoing every time.

wj

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