cheasapeake in my opinion is up to no good. They keep paying less and less each month.Far below the fair market value. Soon they will tell us our wells are not profitable, and wont pay anything. Time will pass then they will say we owe them to maintain the wells. They will say we will let you out of your lease, and will take on the mantanience on the wells. Then they will own the wells outright. Now these wells,,, when they came in were in the top 5 biggest producing wells in Johnson co. tx. and are still producing great. Last month statement showed a 15cents per unit value, when I know market value is around $2.30 per unit, which is what EOG energy is paying us on other wells we have leased with them. Again this is just speculation on my part as to what they are up to. My other lease holders say well cheasapeake is too big too fight and it is not worth it. They are very well off and dont need the money, but me and family were depending on this income. I just want to be paid the fair market value which is what chesapeake started out doing. Thanks to this forum,, Jay hester
You are not the first person who has mentioned or complained about this. I represent a non-operator in wells with CHK, and they are actually reporting negative prices to the non-ops. I've been contacted by other royalty owners in the Eagle Ford and the Haynesville and they too are getting less than $1.00 per Mcf. When you have multiple markers around you of market value, such as the EOG price of $2.30, it certainly raises red flags.
Mr. Hester,
I've asked people before and never had someone answer. Would you be willing to mark out personal information on your royalty statements and upload them here?
I, as well as others, can research and share our opinions whether or not you are getting a "Fair" price?
I own minerals in several areas, but none that are operated by Chesapeake. I hear this story a lot and would just like to see proof.
Good luck,
Same problem here, only another producer, (one of the big ones) . I'm sure they are giving us bottom dollar, and stockpiling then when market recovers and price goes up, they will sell. Just speculation on my part too, but, the company's are not to big to go after. What's right is right. And if we are getting stiffed they need to pay up!
I agree dawn, these companies are big but they have got themselves introuble fianacially when the price was so high. Now I believe they are trying every underhanded thing they can do to keep their stockholders happy. They signed on under the premeise of a covent with the land owners. But every lease is worded a little different which keeps us from bringing a classaction suit. And I'm sure in the fine print they are legally allowed to do what they are doing,, further more in texas the courts heavily favor these big companies. What they are doing is not right and dishonest, but very well may be legal. I'm mad as hell and I wish we didnt have to take it anymore,, but I guess we are going to have to. Thank you for posting
Dawn Brand said:
Same problem here, only another producer, (one of the big ones) . I'm sure they are giving us bottom dollar, and stockpiling then when market recovers and price goes up, they will sell. Just speculation on my part too, but, the company's are not to big to go after. What's right is right. And if we are getting stiffed they need to pay up!
Mister mineral guy thank you for replying,, My printer is broken maybe I could take a picture of my paperwork and upload it here. Or maybe type out the columns u need to see. To be honest I dont know what half the stuff means on there. But the unit price is always what I pay attention to. I compare it with our EOG unit price they pay. Also, they didnt start out doing this back in 08, but in the last half of 2011 is when the difference between market value and what they payout started. Thanks again
Mineral Guy said:
Mr. Hester,
I've asked people before and never had someone answer. Would you be willing to mark out personal information on your royalty statements and upload them here?
I, as well as others, can research and share our opinions whether or not you are getting a "Fair" price?
I own minerals in several areas, but none that are operated by Chesapeake. I hear this story a lot and would just like to see proof.
Good luck,
In Johnson County, EOG gathers and processes most of their own production. XTO and Cheasapeake do not own the gathering line or processing facilities. When they do own the gathering lines they are only gathered for a certain distance and then gathered or purchased by someone else.
Most of the leases done in the area were from EOG, Cheasapeake, XTO and Arrington. Arrington and EOG sold some of their leases to XTO and Cheasapeake.
If you read your lease it may say that no expenses are to be taken out. If it does, you will probably find that somewhere else in your lease states market value at the well. Market value at the well means after expenses are taken out.
One occassion I have seen a definition of Highest Market Value to be whatever the Lessor sells it for.
A couple of questions. 1) Are there any deductions on your check detail? 2) What is the quality of your gas? 3) do you have a no deduction clause?
Yes brian I think thats what they do ,, sell to an affiliate which they own at low rate which is what they pay us .. then they sell it for market value for themselves.
Brian Upshaw said:
In Johnson County, EOG gathers and processes most of their own production. XTO and Cheasapeake do not own the gathering line or processing facilities. When they do own the gathering lines they are only gathered for a certain distance and then gathered or purchased by someone else.
Most of the leases done in the area were from EOG, Cheasapeake, XTO and Arrington. Arrington and EOG sold some of their leases to XTO and Cheasapeake.
If you read your lease it may say that no expenses are to be taken out. If it does, you will probably find that somewhere else in your lease states market value at the well. Market value at the well means after expenses are taken out.
One occassion I have seen a definition of Highest Market Value to be whatever the Lessor sells it for.
A couple of questions. 1) Are there any deductions on your check detail? 2) What is the quality of your gas? 3) do you have a no deduction clause?
I will answer that MG. Sure I would. Why not. You will get to see just how bad it can be.
Buddy
Mineral Guy said:
Mr. Hester,
I've asked people before and never had someone answer. Would you be willing to mark out personal information on your royalty statements and upload them here?
I, as well as others, can research and share our opinions whether or not you are getting a "Fair" price?
I own minerals in several areas, but none that are operated by Chesapeake. I hear this story a lot and would just like to see proof.
Good luck,