Replies to This Discussion

Permalink Reply by mmelf on October 8, 2012 at 2:00pm

We were told by the Rex landsman that Rex & CHK are swapping leaseholds.  The CHK leaseholds closer to Augusta will go to Rex if they are CHK or other companies such as EnerVest and the leaseholds towards your location will go to CHK if they are Rex.  I suppose it depends on what can make up a drilling unit.

Permalink Reply by Robin Hood on October 9, 2012 at 1:13pm

Why are they asking you?  Our lease with Great Lakes clearly stated that transfer of our lease can only happen by prior written consent from the landowner. This never happened, the lease was traded with 300 others to Chesapeake without even a courteous "by your leave".  Chesapeake now claims to hold  our lease despite acknowledging that consent never occurred. Based on our experience with that company, I wouldn't give them the time of day. BEWARE!

Permalink Reply by 0i7okn54zwbdo on October 11, 2012 at 3:14pm

"Written consent" is generally understood to cover individual leases.  If a company is selling every lease then consent is usually waved.  They probably didn't tell you that when they took the lease.  It doesn't make it right but it seems to be the way things are done.

Permalink Reply by Robin Hood on November 4, 2012 at 10:57am

Yes, if we just let them bulldoze us over. This one is going to court. It was one of the few things we had any say in and they just waved us away with a "nah, that's nothing you should worry your wittle head about." I'm sure the judge is more concerned with the peoples rights.

Permalink Reply by Cheryl on November 7, 2012 at 8:59am

Our lease is being assigned to CHK from REX.  We are giving written consent for the assignment.  If we can help these companies put together drilling units, we are happy to do so.  I've not heard of anyone having issues with transfers.  I was told that REX will be transferring to CHK pretty much all of their leases west of Carrollton.  REX's drilling area will be concentrated in an area north and east of town.

Permalink Reply by momoney on November 7, 2012 at 6:54pm

you are happy to help them?,they must be paying you millions?right?.or you work with them?

Permalink Reply by Cheryl on November 8, 2012 at 2:16am

Why would we want to stand in the way of energy independence and economic growth for our community and our country?  To date both CHK and REX have proven to be good citizens; repairing roads, making community donations, and operating safely in the community.  We had a clause in our lease requiring written consent if the lease was to be transferred.  They asked for written consent - we agreed to it.  Yes, I will gladly work cooperatively with them to accomplish the goals ahead. 

Permalink Reply by Robin Hood on November 8, 2012 at 2:54am

What if they violate your rights?  Are they still good citizens if they didn't ask for your written consent?

Of course all the things you mentioned are great. But they don't correct the wrong.

Permalink Reply by Cheryl on November 8, 2012 at 2:34pm

Sounds like Great Lakes is the company that you need to take to court, not CHK.  They were the ones who transferred your lease without consent.

Permalink Reply by Robin Hood on November 9, 2012 at 12:41am

Yes, they need to be sued, also, for punitive damages. However is it now Chesapeake that is illegally claiming to hold our lease. 

When Great Lakes sold or traded the 300 leases, Chesapeake accepted them with the understanding that they assume all responsibility to handle any disputes or conflicts that may arise. 

Permalink Reply by Robin Hood on November 8, 2012 at 1:32am

The point is a matter of rights. If there is an explicit statement in your lease that requires prior written consent from the landowner, then it's the leasee's obligation to request that consent.Failure to so would give the landowner a reasonable justification to deny the consent as the covenant of the lease had been violated.

In your case they requested written consent to transfer the lease. They followed the requirements of the contract. Your rights were are not violated.

It's the principal of the issue. Just think if they had transferred your lease without your knowledge to a company 6 months ago by the name of  " Dewy Chetum and Howe, Frackin ay Oil Company" owned by Bernie Madoff.

Would you fight them over your rights in the lease? Or just accept it and hope for the best?