CHK + Access Midstream? = non-payment of Royalties for July

I was told today by the land man who works directly for CHK in OKL, that we were not paid royalties in July because "our purchaser didn't pay us".

I asked who is the purchaser and he said "Access Midstream".

I said I thought they were a subsidiary of CHK.

He said 'no they are not'.

Hmmm, news to me.

He said "You will probably be paid in your August check".

I said this is not what our contract says.

He says, "what contract?"

I said, our lease contract agreement!!

"Oh, I don't know what your lease says." 

I said, we have payment terms and this does not comply.

So then I asked for his supervisor then asked for the vice president's name.

Looks like a letter is going to go out..

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Permalink Reply by James Foster on August 12, 2014 at 9:04am

He is correct Access Midstream is no longer a subsidiary of Chesapeake. Too many leases in area had clause no selling to subsidiary so it was sold off. Are we still getting screwed by them probably. If they did not sell the product or in this case get paid how could you be paid. I am guessing you would lose this battle in court or it would cost more than its worth fighting. What does your lease say specifically?

Permalink Reply by wishing well on August 16, 2014 at 4:14am

Pa landowners filed a 5 billion suit against Chesapeake and Access Midstream. See the Shale Gas Reporter that was in the Farm& Dairy this week. I think they will go down over this and be no more! 

Permalink Reply by fandango on August 16, 2014 at 5:46am
Permalink Reply by wishing well on August 16, 2014 at 6:36am

Thank you fandango for the link to the article! 

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 16, 2014 at 3:32pm

JK,

    Find the Failure To Pay Royalty clause in your lease and use the guidance to write your producer a Certified Letter, Return Signature Required, to notify them of their failure to comply with your lease.

I have a lengthy example that I'm sending to my producer next week. If you need a good format let me know.

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