CHK and Total agree to pay Royalty owners 52.50 million dollars (US) they claimed they were cheated out of.
I don't know when it became fashionable for Operators to act like Clip Joints, but it happened.
Check it out:
Chesapeake Energy (CHK -0.4%) and Total (TOT -0.6%) agree to pay $52.5M to 13K people who claimed their royalties were underpaid for leases in the Barnett Shale.
As part of the agreement, CHK will provide $29.4M upon court approval of the settlement and another $10M in three years, while TOT will pay $13.1M in cash when the deal is finalized.
TOT agreed two months ago to pay $6M to settle a similar royalty lawsuit brought by the city of Fort Worth, which also sued CHK, and lawyers involved in the litigation say they expect CHK to settle its part of that litigation soon.
No trial so no one knows who actually did what (officially).
Per capita it's over $4,000. I know it won't be paid out that way, but it's a large sum of money.
The Plaintiffs must have wanted to ring CHK's neck.
No one likes getting ripped off.
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Replies to This Discussion
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Permalink Reply by Joseph-Ohio on -
$4038.46 per capita doesn't sound like much of a settlement off hand.
Class action ?
Wonder what the Attorney Team cleared out of the mess ?
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Permalink Reply by Paul Butler on
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It's not bad Mr. Joe.
Trials are perilous. Probably they shorted the Plaintiffs more, but remember the old expression:
I could prove it in court.
The expression is used only when you have overwhelming evidence.
It's really hard to prove things in court. That is why people must carefully vett with whom they do business.
Once you have to sue---you're screwed already!
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Permalink Reply by Joseph-Ohio on
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Hearing that loud and clear.
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Permalink Reply by 0ym9x5ag7ury2 on
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Paul,
If you were to be careful about who you do business with when dealing with domestic Oil & Gas Companies, you would never do business at all.
Who are you dealing with? Or are you in the business?
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Permalink Reply by Paul Butler on
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"If you were to be careful about who you do business with when dealing with domestic Oil & Gas Companies, you would never do business at all."
Of course, that's about as insightful as you can get.
If you only knew Ron, if you only knew.
I have strict confidentiality agreements with my clients who buy in 10,000 and 20,000 acre blocks and then drill everything. They want to remain unknown to everybody except their Lessors. Before they buy a lease, they have spent much money on geology and geophysical. Claim jumping is a big problem. I hope you see the difficulty.
In addition, I will never use this site for self-promotion.
I see myself acting as a public watchdog/arc light on GMS. I really am for the little guy.
I will say--- never sign an oil & gas lease unless you get a certified bank CHECK, at signing.
Drafts have been the main instrument/artifice of the dirt bag.
Never accept payment in draft form.
If only certified bank checks were accepted by mineral owners, 98% of the cheats would disappear.
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Permalink Reply by Paul Butler on
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In the north they call Drafts--Orders for Payment.
If anyone attempts to hand you one, end the meeting and never speak to that person, or anyone associated with that person, again.
Drafts, Orders for Payment, etc.. are a big red flag.
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Permalink Reply by Joseph-Ohio on
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Just now advised (and a bit confused by the advice to boot) that a 'Bank Draft' is one in the same thing as a 'Cashier's Check' ? ! ?
So, I'm back to 'Square One' on that score.
A head scratcher for me right now.
Any help out there ? ?
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Permalink Reply by Joseph-Ohio on
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Thank you for the insight and advice Mr. Paul Butler.
I will remember and use it given the opportunity.
'Cashier's Checks' I'm advised are supposed to be better (than a 'Certified Bank Check') as the buyer of a 'Cashier's Check' must purchase it from their own bank and once it is given as payment for whatever it is that's being purchased (for instance a lease agreement) the purchaser of the 'Cashier's Check' is taken out of the transfer of funds procedure and the bank that sold the 'Cashier's Check' to the lessee pays the lessor (out of the bank's funds).
Then the instrument offering the most protection I've been advised would be the 'Money Order' as the 'Money Order' can be purchased by the lessee from many other sources and 100% of the funds transfers (to the issuer) when the lessee purchases it; and finally, the issuer of the 'Money Order' transfers the funds to the lessor (also) eliminating the lessee from the transfer process.
But, I don't know how unusual it would be for any lessee to utilize any of the alternatives myself.
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Permalink Reply by Paul Butler on
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Any Lessee worthy of doing business with will gladly provide a certified bank check.
I spent 20 years in the business and never saw a draft for more than 30 days. Most drafts were 3 or 7 day and a check, upon request---no problem--it will be my pleasure.
If it's more than 30 days, it might as well be "666."
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Permalink Reply by Joseph-Ohio on
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Thank you once again Mr. Butler.
I'm obliged to ask however if you've ever heard tell of any lessee paying via a 'Cashier's Check' or a 'Money Order' ? ?
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Permalink Reply by Joseph-Ohio on
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Just now advised (and a bit confused by the advice to boot) that a 'Bank Draft' is one in the same thing as a 'Cashier's Check' ? ! ?
So, I'm back to 'Square One' on that score.
A head scratcher for me right now.
Any help out there ? ?
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Permalink Reply by Paul Butler on
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If you are really curious--google the Uniform Commercial Code.
Article 1 is the definitional section.
Article III controls "Commercial Paper."
The rules are in those 2 sections.
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