royalty check meaning

We just got our first royalty check.   I understand all the items on the check and what they mean by looking at the chesapeake web sight.

My question is what do the different number of lines mean?

for example 1st well has date, etc

second line has same 

each line has all same info except for the type of product and the volume.

My question is do the number of lines change and what does that number mean?

thanks

i sure hope I explained what I mean well enough

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Permalink Reply by Anonymous on May 9, 2014 at 3:33am

I think I must be explaining what I was looking for with this thread.

I was interested in what each line on a check statement meant

I don't think I have explained well what I was looking for with this thread

The numbers I have put out really have nothing to do with anything   

each different line is a separate sale   I did not list all the lines on our check.   

I hope this thread helps some folks who are confused by the format of the check stubs.

It is so easy to speculate before that first check.   I have read this sight for 2 years and learned so much.

Thank you to everyone who has helped me grow along the way

Everything depends on your lease

Permalink Reply by Bluflame on May 9, 2014 at 6:31am

Anonymous,

 

  Could it be that the 33 brls just covered one day's production?

 

BluFlame

Permalink Reply by Anonymous on May 9, 2014 at 9:21am

I guess that is possible.   I know that our check stub had 8 lines for 1 well and 9 lines for the other well and each line was a different sale.   I do not know if the sales had anything to do with the production.   

I also know that the bottom line of the amount was nothing to sneeze at.   

After hearing all the bad PR about Chesapeake, frankly I was worried.    However, they abided by our lease and I have no complaints.   :)

Permalink Reply by Bluflame on May 9, 2014 at 3:57pm

Thanks A,

  I'm also a CHK lessor, and have royalties due soon. Nice to know they are abiding by lease terms. That is contrary to the experience of others apparently. Maybe it's due to the new management.

BluFlame

Permalink Reply by CNT on May 12, 2014 at 5:25am
Awesome! Dollars from heaven! You mentioned you have 7 acres. What is the number of acres in the entire tract? Some companies drill covering 640 acres. So you could have other families collecting on same well as your family. And each family lease could be different from yours because they may have negotiated to have "cost free royalty" or "depth severance" or "shut-in payments."
Permalink Reply by Anonymous on May 12, 2014 at 6:06am

The unit is 344 acres    we have a very good lease.  Gross royalties, shut in payments.   I am not sure about the rest of our unit.   

Permalink Reply by CNT on May 12, 2014 at 6:11am
That is so wonderful!
Permalink Reply by tony d on May 13, 2014 at 4:37am

How would we know if its a fair check without any explaination?    What percent, how many acres.. etc...  sure its in your lease but humans do make mistakes.  Why shouldn't we be reassured at every step we are getting what we deserve,   

Permalink Reply by Anonymous on May 13, 2014 at 5:50am

What?    I do not understand your post at all.    I have said over and over we are very pleased with our lease, our royalty check and the way Chesapeake as treated us so far yet everyone keeps jumping down my posts.

What gives?   

Now I understand why people shut up and disappear once royalties start.

Permalink Reply by INVICTUS on May 13, 2014 at 5:25am

If you have an audit clause within your lease, that would be the place to start.

Don't depend on ODNR: They will not audit the companies for volume. Period.

This includes the numbers that are self- reported quarterly.

Permalink Reply by Travis Keefer on May 15, 2014 at 12:53am

Its amazing 2670 people have viewed this thread and no one has actually answered your question! All most people want to know is how much cash your getting, totally off point from the question it's unfortunate but i guess thats part of it. I wish i knew the answer but unfortunately i do not, but i along with other im sure would actually like to know what the lines on the check mean not the amount thanks

Permalink Reply by Anonymous on May 15, 2014 at 1:20am

ok   I am going to try and explain this one more time.   I am obviously doing a terrible job of it  lol

If you go to the Chesapeake web sight and look up check stub page

http://www.chk.com/Owners/Pages/CheckStub.aspx

Under line 17 there are 4 different lines.   Each on of those lines represents a seperate sale of product that the royalty owner is being paid for.

Does that make sense.   I decided to try this again because Travis asked again.  

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