Replies to This Discussion

Permalink Reply by Dr. Larry A. Maxwell on June 26, 2015 at 4:32am

We had heard Chesapeake is the most unscrupulous company to deal with. Before we received our first royalties, Anadarko told us they operated at a much higher moral level than Chesapeake. They told us one of their principals became the head of Chesapeake and was having culture shock because of the unethical and unscrupulous nature of Chesapeake. It appears he must have been the only one at Anadarko with moral  standards. Since he left Anadarko, we have discovered Anadarko is the worst company to do business with. They are rude and arrogant and think we are ignorant. Anadarko owns part of our lease. Our lease specifically says they cannot take deductions. Yet they are taking deduction. When we approached them, they said we are actually being paid more by them taking out deductions. When I pointed out that statement was ridiculous, they conceded and said it does not matter what our lease says, they will continue to take deductions. Chesapeake does not take deductions. They are paying royalties and even adding in additional monies. It has been a pleasure to do business with Chesapeake. Anadarko provides a selling price for the gas which is half of Chesapeake's, and still takes close to 40% deductions.  I reminded them of the case they lost in Texas where they had to pay owners $2.5 million, plus attorney costs. We are waiting to hear back from them.

Permalink Reply by Frank Walker on June 26, 2015 at 5:14am

Sounds to me as if morality has fallen by the wayside at Anadarko.  But then, and especially after these last couple of days, where in America, even at the very highest levels, has morality not evaporated.

Permalink Reply by Robin Smith-lutz on June 26, 2015 at 2:04pm

I am too. At time Chesapeakes have been likewise.   I am very disgusted.

Permalink Reply by Golddigger on June 26, 2015 at 2:49pm

Chesapeake for April was about the same, 49% deduction. What do you do. I signed in on one lawsuit, but still in Limbo and don't expect much success. Also I doubt the State Bill is going anywhere.Money talks and the gas companies have much deeper pockets than anyone else and can drag this out forever.

Permalink Reply by Jeff Kerr on June 27, 2015 at 6:48am

Like I said  do the math and see what % you are getting with the deductions  bet its 12,5%Think of the money pa is loosing in our tax dollars. Call the ATTY. GENERAL. OF PA. they only listen when they are loosing tax dollars.We should get just what the contract say's its theif by deception on the Gas Co. part.  why do they pay us well head now its there gas but we still help pay them to get it to market. Its just WRONG  

Permalink Reply by alexandra on June 27, 2015 at 5:18am

Actually, Anadarko took out less at 50% than Statoil, and Chesapeake.  Are Companies trying to keep profits up at Landowners expense?  Are pipeline companies really making more than Landowners?  None of our legislatures know about this?  Oh common, why aren't they protecting us?  This is outright thievery!!!

Permalink Reply by bobt on June 28, 2015 at 2:47am

we have seen percentages of 50% or higher from Statoil for the past 3 months and before that the high 30's. CHK has started to go to 50% and higher in the past 2 months and before that the high 20's and low 30's this is a disgrace and we need to all start writing and calling our reps and senators in Harrisburg because i see no immediate relief with these lawsuits

BobT 

Permalink Reply by John Capwell on June 28, 2015 at 3:24am

In the face of low natural gas prices the methods for maintaining a positive cash flow, maybe profits and to stave off shareholder complaints the easiest course of action is to shift operating costs to the royalty owners. Layoffs occurred in all major companies to reduce costs but cash flow still dropped. Predictions that Chesapeake will be in negative cash flow by the fourth quarter of this year surfaced and other energy companies are experiencing lower incomes too.

The creative financial wizards decided the group with the least recourse in resisting change was those who receive royalties. Although court action and legal action is likely, both may embolden companies to reduce royalty payments further. Companies may decide that taxes and legal fees are new deductions that need to be applied to the royalty owner.

As stated by Jeff, taxes may be our only salvation. Lost state and federal tax dollars may leverage legislators to solve this issue but I am not one to hold my breath for a quick fix.

Permalink Reply by Frank Walker on June 28, 2015 at 7:03am

Our beloved PA Attorney General,  sweet Kathy Kane, has been on this case a really long time.  Everyone knows this is among her very highest priorities . . . . just below saving her own skin!!!

Permalink Reply by patty on July 8, 2015 at 3:40am

Mit has not issued us a check this month bc our 23 acres only produced a check of $46.00 and it has to be at least in the amount of  $50.00 dollars in order for them to pay out.  I told them they are getting more and more ridiculous on their payouts and hung up.  I am just so disgusted with these high deductions, soon we will receive no checks.  At least we all in the same river different boat!

Permalink Reply by Bob Fuhrman on July 8, 2015 at 4:22am

Last week, Anadarko, Chesapeake and Statoil were all either 48+ or 49+% deductions, but Mitusi was at 51+%. 

Pretty soon I'll owe them for taking my gas.

Permalink Reply by patty on July 8, 2015 at 6:57am

We say the same the same thing!  Soon we are going to be paying them!

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