That is exactly what I was thinking. We are all beginning to think that it was a mistake to even sign the gas lease. I appreciate your verifying my thoughts. I guess there is nothing we can do.
Nancy
r w kennedy said:
Ms. Heath, the fact that Chesapeake is the operator may be the answer to your question. You should do a search of "Chesapeake" and see what those who are leased to them are saying. From what I can recall, even with the commodity price of natural (dry) gas approaching $3 per thousand cubic feet, that Chesapeake, with approval of the courts, has found a way to backcharge the mineral owner the maximum for post production charges, gathering, compressing, dehydrating, transporting, separating, marketing, all this before they sell the gas to an afilliate for a sweetheart deal price. This sweetheart deal price is what you are paid royalty on [if you do not have first arms length transaction language in your lease] after all the deductions, including state production and severance taxes. I have seen a post by one man that he had been paid less than 20 cents for a mcf which is 1,000 cubic feet of dry gas. Chesapeake is a large company fighting for it's life and future. Chesapeake is getting loans so they do not have to sell off large parts of their holdings at firesale prices, but sell they must and they must scrape up every dime they can along the way. This time, it's your dime. You have my sympathy, as does all the other people in the same situation.