Just got our January and february check from Chesapeake, after not being paid for last month thought things would be a little better, uh uh, two months check from cheasapeake was $52, and they took out $383 for gathering, pretty soon I guess I'll be paying them to pump all the gas, they said that their producers rate went up, wish we would have never got involved with Chesapeake. Guess I'll have to join one of the class action lawsuits against them,, wish I lived at my place in pennsy, but I'm in jersey

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Thanks for posting this info.  I'm here to learn.  How many arces are you being paid for?

We are getting paid for almost 9 acres in a 630 acre unit and every months check has been from $250 to $300 and this $52 check was for TWO months, and the guy I talked to at Chesapeake, after I vented at him for a while, said well at least you got $52,, they are amazing, but all they are are yes men and really can't answer any questions you have cause they don't know what to say, total check owner royalty $419 deductions $367, check $52,,, amazing

In Bradford County Chesapeake took out deductions retroactively after the ruling of the Kilmer case which said deductions could be taken from a 12.5% lease.  In your case that is a huge amount of deductions which even Chesapeake couldn't justify in a normal month.  I can't believe Chesapeake guy couldn't give you an answer.  Most Chesapeake leases have been assigned to Statoil, Anadarko and Mitsui so you should get checks from at least one of them for the same period.  That should provide some comparison.

That was for two months, and he did give me the reason that their producers rate went up,, we are still waiting for a check from statoil, but they are probably using a different producer...

did they tell you what "producers rate" means?

i've never heard of that term.

wj

This is an eye opener because I have a friend that leased 5ac to Dominion for a vertical gas well (maybe 20ac in Ohio) and received $5,000.00/month for 12 months.  Then his check droped off to 2-300.00 dollars a month.  Getting all excited about a horizontial well may be a waste of time.

Call The Doug Clark Law firm..they will look at the deductions...570-307-0702 he will tell you if the deductions are correct (for free).

Thanks Gary, think I'll do that on Monday,, thanks again,,
I can't believe I spelled unbelievable wrong,,,

Tico

Couple of things:

First, I'm very sorry for what CHK is putting you through.  No landowner should have to put up with this kind of crap.

Second, kudos to you for warning other landowners.  There are still people out there defending CHK.  But I have heard SO many CHK horror stories over a long period of time.  You don't hear similar stories with the other gascos.  Take a bow.  Your post here is a public service.    

With all these problems and reductions of royalties, should one consider selling 50% of their minerals.  Uncertainity of not getting into a drilling unit.  Unknown tax liability in the future.  BS market delivery deductions.  Why bother holding all your rights....maybe sell half for going rate for your area and at least you know the value and your tax liability. 

Jason

Disagree (respectfully).  It's not a good idea to sell your minerals, generally speaking.  Many, many gas companies do business ethically, in a manner respectful of landowners.  Chesapeake is the exception, not the rule.  Thank goodness!!

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