Waiting to get paid?

Have you signed a lease and are still waiting to get paid? How long has it been? Who did you sign with? What is the wording in your lease?

Have the OG companies drilled, but you haven't been paid? Was the payment what you expected? How much did you get per acre/month?

Where is your property?

We are thinking about signing and want to be protected and have an idea of how long it will take to get paid and what kind of wording works. There are tax consequences and planning that need to be considered and it would be helpful to know a timeframe. My wife's uncle had a well drilled (shallow) and is now HBP- his last royalty check was for $.75, yea, that's right 75 cents!

Views: 6908

▶ Reply to This

Replies to This Discussion

Permalink Reply by Dave on October 9, 2011 at 1:23pm
Geez paleface what about that battery thats powering your laptop? oh thats right
Permalink Reply by Lawrnece J. Carmalt Sr. on October 16, 2011 at 1:53am
Boy what doom and gloom!   :>)
Permalink Reply by Lawrnece J. Carmalt Sr. on October 16, 2011 at 1:51am

A lady I know expressed her concern about her water if she signed a gas lease but confided that she had signed her 120 acres because even if she didn't sign a lease they could still drill under her property as long as the gas company had 90% of the land owners signed.  She said it was either a signing bonus and a royalty over the 12.5% or accept just 12.5% and no signing bonus.  Now I am not certain she was correct but I have heard this quite a few times.  

 

Permalink Reply by Finnbear on October 16, 2011 at 8:53am
She was NOT correct with respect to deep horizontal drilling. She was referring to Ohio regulations on mandatory pooling also called forced pooling by some. I have correspondence from ODNR with respect to this issue that indicates that the regulations in question were not intended for and are not being applied to deep horizontal drilling. She should have consulted an attorney before signing who is familiar with recent oil and gas leasing in Ohio and he/she would have informed this lady that she was the victim of a fear tactic being used by some in the land acquisition business.
Permalink Reply by Finnbear on October 10, 2011 at 9:02am
Typically when you an oil and gas lease, there is built into the contract a period of time (avg 60-120 BUSINESS days) that allows the lessee (oil and gas co) time to do the title work to make sure you fully own the rights you are leasing to them and that there are no issues with your ownership of those rights. At the end of that period, if all checks out OK, they send you a check and the lease becomes a valid business contract.
Permalink Reply by Oil and Gas nightmare on October 11, 2011 at 3:08am

I fell like you do, nobody is saying what they got.. I guess they think because I have thought about this that, 1. you read on the leases that all of this info is confidential, so thats a fear.  AND 2. You think do I want people to know my name and how much money I have..maybe it would be better to just give me a between, an avarage.

Like (example, not true for me yet) I get between $1000- $1800 per month or something...

Also I know its a process, after the title search, then there is exploratory work, then they permit for the well which takes 30 days, then putting up a well, blah blah, then getting it to market...so a lot of this serious drilling has just started..so I guess it just takes time...

Permalink Reply by Robert Benjamin on October 13, 2011 at 3:50am
I signed a lease on my office parcel (only 2.03 acres for $5,750 per acre and 20% royalty for those interested) on May 13, 2011 with Cheasapeake having 120 days to pay me (September 10, 2011).  It has been over 150 days and still no check.  I gave them written notification that they had 30 days in which to either issue a check or have the lease declared null and void as per the lease.  I received a phone call from one of their representatives who was so nasty that I got word to his boss and told the boss about the incident.  According to Cheasapeake, they lost my paperwork and are now processing it.  If I hadn't issued the written notice, I might have never been paid which I am not sure I am going to be yet.  I also requested that I be paid interest daily until the check is received...good luck getting it.  I own several other parcels of land which are not leased yet.  If I ever do get my check and decide to lease others with them, I am certainly going to put into the lease several clauses concerning non-payment and the penalties subsequent.  I will let you know how long it actually takes to get my check...if it ever comes.
Permalink Reply by Finnbear on October 13, 2011 at 3:58am
Keep us posted. There seem to be a number of people here who have run into various issues with getting paid by CHK, some their own fault, some CHK's, and some due to title issues. I think a lot of it has to do with the way they (CHK) aggressively lease up huge amounts of acreage in a new play in a short amount of time. Too much too fast and some things get lost in the shuffle. Something about biting off more than you can chew comes to mind...
Permalink Reply by t bradley on October 14, 2011 at 7:01am
I also signed with Chesapeake 5 months ago and have not received a check.  They told me that they have recorded my lease at the courthouse but there were some issues they had to clear up before sending me a check.  I sent them written notice more than 30 days ago as that is what I was required to do before declaring a default.  My problem is that I didn't specify in my lease that the lease would be null and void in the case of a payment default so I think I'm stuck and at their mercy with this.  I wish I could get out of the lease because I've learned a ton of info on this website since I signed and would love a do-over.
Permalink Reply by Finnbear on October 14, 2011 at 5:05pm
Did they say what "issues" they had to clear up? That is vague enough to make me believe they are just buying time because they bit off more than they can chew and need more time to vet all the properties. I'd hound them about it and if they didn't give me a solid answer, I'd see a good oil and gas attorney to find out what, if anything, could be done.
Permalink Reply by t bradley on October 16, 2011 at 5:37pm
Thanks for the reply Finnbear.  I'll try again to get some more info.  Funny thing is before I signed they were so nice and always available to talk now they're scarce.
Permalink Reply by Brandon Nuttall on October 13, 2011 at 4:09am
When you sign a lease, you probably won't get any payments until the company also signs and DELIVERS the signed copy to you. Without that lease "signed, sealed, and delivered", you aren't sure what you're supposed to be getting.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service