Royalty Statements - A question for Chesapeake Leaseholders

If you speak with your neighbors in your unit regarding the unit's gross production & pricing reporting on royalty statements, are you finding slight differences, large differences between these royalty statements?

I'm finding enough differences to raise questions as to why this is occurring.

My understanding of a unit's GROSS reporting is that all number among all royalty owners within that unit should be identical. Net to the owners, of course, would normally differ based on lease language.

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0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on April 3, 2015 at 3:36am

My neighbor and Bruce Buck, who owns the farm where the Buck Well1H & 6H are located are getting the same dollar per acre per month that I'm getting. That tells me we are being paid from the same spreadsheet.

Bruce told me from the start that a neighbor that has 15 acres is making more money than he is with 100 acres. That neighbor has a lawyer looking after their O&G royalties which may have caused Chesapeake to pay the correct rate from the start with no deductions. Chesapeake likes to run their theft for as long as possible before they are found out, which maximizes their take, so they would tend to play fair where politicians they don't own $$$ or lawyers are watching what they are doing.

I've compared our production with the ODNR quarterly reports which shows Chesapeake is taking more from our well than they showing on our royalty statements.

They are in fact stealing all of our NGLs on Buck Well 1H and have told Bruce Buck that his 6H Well has Bad NGLs so they aren't paying for them. What could be bad with Methane, Propane, Butane, Pentane, and Ethane. I call BS on CHK, they are stealing without having a good excuse.

Let me know your email address and I'll send the CHK Spreadsheet of Theft and it will explain how you are being cheated.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on April 4, 2015 at 5:07am

Big Update,

  Buck Well 1H Royalty payment for NGLs by the gallon:  8 cents per gallon for over 40,000 gallons and 0 cents per gallon for over 10,000 gallons.

I just paid $1.30 per gallon for Propane and have been forced to give away a huge amount of Propane, Butane, Pentane, Methane and Ethane, which make up each gallon of NGLs.

Can you say Theft? I knew you could!

I think we are in a full scale bailout of Chesapeake.

My lease has no clauses that say I must forfeit my royalties when Chesapeake has financial problems. The lease also requires an Arms Length sale at Fair Market Value. None of that is happening in Ohio, my fellow landowners.

Keep quiet to protect your rationed royalties, and that is all you will ever see.

Take a chance and speak out, you might just change your world and Ohio's future.

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