nat prices higher royalty checks lower from Chesap.

I have noticed in our past royalty checks that Chesapeakes checks are paying lower each month while stat, Mit, and Anadarko are rising.  I dont understand why, with the price of nat gas rising why arent Chesapeake royalties rising like the rest of the companies.

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Permalink Reply by evan on March 23, 2013 at 12:00pm

Just curious what does a royalty check look like. Is everything listed and broken down into what your getting paid for

Permalink Reply by robert g. weaver on March 24, 2013 at 1:34am

They used to send us a statement each mo. but the last couple of mos. they have stopped doing this, hard to understand also.  Cheasp. sold out to 3 other cos., this is all on one well so doesnt even make sense why there royalty is dropping while on the same well other royalties are going up. In other words we receive 4 diff. checks a mo. from 4 diff cos.

Permalink Reply by Tico on March 23, 2013 at 1:15pm
Because Chesapeake is the worst company to be leased by, period
Permalink Reply by Frank Walker on March 23, 2013 at 3:23pm

+1

Oh, God, you got that right!!

Permalink Reply by craig on March 23, 2013 at 4:51pm

I've seen the production dropping scenario locally (Western Pa)  which I believe is the result of more wells coming online and the local pipeline connection is running at capacity.... thus the very low production numbers and check size.

Permalink Reply by robert g. weaver on March 24, 2013 at 1:42am

Well I think I will give them a call bc mcf has gone up, production is the same bc we are one well, receving 4 checks from 4 diff cos.  Chesap. sold potions of the well off, if people dont already know this, dont expect one check a mo. just from chesap. alone, I know several people receving checks from 3 or 4 other cos. on the same drilling site.

Permalink Reply by Frank Walker on March 23, 2013 at 3:30pm

Robert

CHK is a bunch of shysters.  They seek out any possible means, regardless how devious or questionable, to move money out of royalty owners' pockets into their pockets.  Their attitude is:  If you don't like it, we'll see you in court.

True story

In LA, CHK actually brought suit against their own royalty owners for recovery of royalty over payments which were the acknowledged fault of CHK!!!!!!!!!!!!!!!!  What most gascos do in a situation like that is to hold back future royalties until the debt is paid.  But not CHK.  They wanted to be paid faster.  It never occurred to them they were dealing with real people who upon receiving the royalties, in many instances, spent the money!! 

Permalink Reply by evan on March 24, 2013 at 12:17am

i  m about  to lease  with chesapeake , possibly. are they really as bad as they say

Permalink Reply by Tico on March 24, 2013 at 12:57am
Yes, if at all possible try to find another company to lease with, know it might be hard to do but it would be worth it,, I think they are such a large company they just want to move the gas as fast as possible and that would be as low as they could sell it for, while it seems that smaller companies are shopping around for higher prices,, that's my opinion only, but that's what it looks like
Permalink Reply by Tom R on March 24, 2013 at 3:06am

If you want to avoid CHK, and manage to find someone else willing to offer a lease, make sure it includes iron clad language prohibiting sale, transfer or re-assignment of the lease. (Honestly, doubt you would get it but you could try) When things get past the initial leasing phase the companies do a lot of back room horse trading to establish their turf for forming the units and I know many folks who leased to a different company than the one that ended up holding the lease.

Permalink Reply by robert g. weaver on March 24, 2013 at 1:24am

As I stated the other co. checks have gone up but not theres, nat prices go up, but their royalty checks go down.  This is all on the same well, we receive from 4 co.s all total that is why Iam so curious as to why chesap. isnt going up too.  If I could do over I would never lease with chesap.  We were one of the first areas to lease and they lied to us saying things like they would take our gas anyway and we might as well sign and get some money, that was the final straw bc we had been holding off, decided we might as well sign.  Dont believe what they tell you, make sure you seek a good attorney. Not only tht cheap. usually sells potions of the well to other co.s we receive 4 diff. checks all on the same well each mo.

Permalink Reply by evan on March 24, 2013 at 1:55am
  • Ive heard alot about Ches. lately. Their wanting to drill real soon on  us. We also have a few other companies wanting to top lease but if  we top lease it might be a long while before we re drilled on.. We re in a very good area and theirs gonna be alot of drilling around us  this summer. decisions decisions....

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