"Drilling firm wants money back for Donora claims"
"About a week ago, Kostolansky — a Donora councilman — received a letter from Chesapeake, asking that he send back two royalty checks he and his wife had received this year as a result of the Marcellus Shale gas drilling agreement. ...
The letters Kostolansky and other residents in what Chesapeake Appalachia termed the "Pine Oaks Unit" received claimed that the company had originally planned to "drill the wellbores under the town of Donora; however, due to mechanical difficulty, the wells were drilled shorter than anticipated lateral lengths."
As a result, according to the letters, Chesapeake was not able to include the lease in the Pine Oaks Unit and the checks already mailed to people need to be returned.
The letter included a self-addressed, stamped envelope and a message that the dividends need to be returned by Dec. 31. ..."
http://www.pittsburghlive.com/x/valleyindependent/s_707875.html
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The letters Kostolansky and other residents in what Chesapeake Appalachia termed the "Pine Oaks Unit" received claimed that the company had originally planned to "drill the wellbores under the town of Donora; however, due to mechanical difficulty, the wells were drilled shorter than anticipated lateral lengths."
As a result, according to the letters, Chesapeake was not able to include the lease in the Pine Oaks Unit and the checks already mailed to people need to be returned.
The letter included a self-addressed, stamped envelope and a message that the dividends need to be returned by Dec. 31. ..."
http://www.pittsburghlive.com/x/valleyindependent/s_707875.html
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Views: 141
Replies to This Discussion
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Permalink Reply by Rambo on
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I would tell them see u in court. Did they declare a unit size? Are they trying to change the unit size? Dont fully understand what exactly happened. Be more clear.
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Permalink Reply by Lynn Wigglesworth on
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I don't understand it, either. If the company is sending them royalty checks, they are in the unit. If they are in the unit, they are entitled to their % of royalties. As I understand it, the bore doesn't have to go under your property for you to be included in a unit?
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Permalink Reply by Ann Ticopa on
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One of the things that struck me about the first lease(s) I read - for conventional T/BR wells - was that while the landowner was tied up , the gasco could dump land out of a unit at will. My guess is that Chesapeake did just that after the "technical difficulty", but neglected to revise the data file that's used to crunch the numbers for the royalty payments.
Imo it was tacky of Chesapeake to ask for the money back. Better they should carry it on their books to be deducted from future royalties. Unless Chesapeake is surrendering the leases, the expectation is that the land will be included in a future drilling unit. -
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