We are in a Unit that went into production in late january according to ODNR well logs.
We have a SURE lease with Chesepeake
I also know from reading court house records that our unit was sold to 4 different companines.
We have heard not one peep from any gas company regarding royalties or asking for a signature of a division order.
Can anyone share weather their SURE lease was honored without an argument or not? I sure do appreciate it.
Are you referring to a SURE lease transferred from REX? Rex did not get our consent to transferring the lease to CHK. CHK has not provided a named, knowledgeable point of contact as required under the lease. I could go on but what's the point.
I am referring to the S.U.R.E. lease done by Carroll county group The SURE group part of ALOV
If that is the same lease that REX had then yes that is the lease I am referring to. thanks!
I have a SURE (Rex) lease that was bought by Chesepeake and am getting royalties as stated in the lease. It takes 3 months after production starts before you will see any money.
Mine's KWGD. Yours is based on that work product.
The ALOV Leases have a 120 day delay before Royalty payments start after production begins. There are delays caused by landowners that decide to join a bit late, so it could be more than the 120 days.
I hear the oil & gas companies keep good records, so they will know what they owe you.
You also have audit rights in your lease in case you think you are being short changed.
Those ALOV Leases are "DANDIES" for SURE!
If CHK sends you a demand letter for subordination of the mortgage (SURE lease) and threatening to withhold royalties, you are not obliged to do anything for them if the mortgage was in effect prior to the signing of the lease. If they do withhold royalties you are entitled to demand prime+5% interest. Do your own due diligence. If they had asked nicely I might have considered their request. When they phrase it as demand...Hmph!
Also, the original SURE lease from 2011 is slightly different from the 2012 one posted on the ALOV website.
Thanks for the feedback. We are good. Chesapeake is honoring our lease. I had read so many horror stories I was wondering if any ALOV folks had problems. Im betting not.
I would also venture to guess the people having problems do not have this lease
Join the National Association Of Royalty Owners (NARO) and read your lease in order to identify the portions that CHK doesn't honor.
CHK was quoted in the paper as saying "It's a good business practice not to pay royalties to PA landowners then go to court and only pay what the judge orders".
I'm sure they will butt heads with us as well, it's just a good business practice to try and steal from landowners.
Notify Bob Rea of your lease issues.