Chesapeake Charging back operating expenses

Texas Mineral Rights Johnson County, TX
1

I did not receive a royalty check this month from Chesapeake. After enquiring I was told that there was an audit and that I owed money back from 2012. When I asked how much $$$, they lady could not answer how much or if I would receive a check next month. After digging around, I found out that Chesapeake is known for post operating expenses and passing those expenses to the land owner!!!! Also, I know there is a firm in Dallas/Fort Worth area that is trying to get land owners to file law suites against Chesapeake.

I am part of the Darby Wells in Johnson County. Are there others that are experiencing what I'm experiencing??????????

2

Operating expenses are disallowed from being taken out of royalty payments. Post-Production costs may be allowed depending on the language of your lease. The majority of disputes currently in Johnson and Tarrant County involves leases which did not allow for post-production costs, but CHK took them anyways. The other issue are leases that allow post-production costs, but the deductions exceed what is actual and/or reasonable. CHK has been hiding deductions by paying below-market prices on the gas and then showing no deductions on the check, when in fact there were deductions - it was just taken out of the sales price on the gas.