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Permalink Reply by JK on December 5, 2013 at 2:45pm

On the CHK thread, we have not received our royalty check which usually comes the last week of the month.

Tried calling OK yesterday and all voicemail boxes are full and there is no one answering.

Called our contact in Jane Lew, WV, who has always called back the next day.

He told me he would find out what's going on. Never called back as of today.

He did tell me CHK is up for sale "lock stock and barrel, the whole thing".

Now what?

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Permalink Reply by stormangasman on December 5, 2013 at 11:21pm

JK

I talked to OK  2weeks ago they told me they have not paid us, because Chief was changing the size of the unit,

They will tell you anything but the truth.

I can't believe CHK bought 40% of our lease, which means we are SOL.

we got screwed w/ an old lease and now got stuck w/ a bankrupted company.

At lease we got some good companies out there like Chief and Enterplus

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Permalink Reply by wyalusing jim on December 5, 2013 at 4:17pm

royalties, unless otherwise defined in the lease, are based on the actual sales price attained by each lessee.

September was a tough month for statoil apparently, but it's also important to recognize that the last several months have been tough for all sellers in northeast pa. prices across the Marcellus have been far below the nymex for some time now and will likely continue to remain depressed.

while the nymex enjoyed a nice rally today and is currently at $4.14, tgp zone 4 pricing is currently averaging $3.18.

wj

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Permalink Reply by stormangasman on December 5, 2013 at 11:35pm

Jim

our lease says at well head

this one company is selling for $2.31 what kind of deal is this. I don't  remember the avg ever being that low.

"depressed" -your right

thanks for your answer.

do you know of a legal firm that can explain how the pricing works and how much deduction is right?

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Permalink Reply by bo boboski on December 6, 2013 at 5:34am

 are probably selling to a company that they actually own,started up just to have someone to buy it cheap,then turn around and sell it for the REAL market price. They can cut down on royalty payments that way.  They figure most people wont be able to sue them,or prove it. If someone can,they will just have to pay you what the should have to begin with. They have multible lawyers on staff, looking for stuff to do to keep busy!

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Permalink Reply by stormangasman on December 6, 2013 at 8:51am

THAT'S EXACTLY what I was thinking they can do-- greedy people can think in ways we can not. I'm tired of greedy people. But  I know they think we should be glad to get what they give us for doing nothing. Thus your right, they think we won't fight it. 

If they are doing it this way it shouldn't be to hard to prove, by banding together with a smart Lawyer.

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Permalink Reply by wyalusing jim on December 6, 2013 at 7:41am

almost all leases in pa say "at the wellhead".

yes prices have been that low and lower. last year I think, it went below $2 for a couple of months. too much gas is currently produced in pa and there is not enough takeaway capacity for it.

staorage numbers are dropping, and the slowdown in drilling is having an effect on supply. things will improve soon I think,

doug clark i think is currently the sharpest lawyer on "all things Marcellus"

wj

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Permalink Reply by Charles Randolph on December 6, 2013 at 9:46am

Sorry to hear of more problems for people who have CHK wells.  It never seems to end, does it ? Maybe Deutsche Bank will have to foreclose on all those properties which they just loaned CHK half a billion against. Keep in mind though, if you become dissatisfied with the amount of your royalty payments or having to wait too long for them, there are usually some "good ole boyz" from TX and OK who will outright purchase your rights from you.

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