CHK squeezes landowners on costs amid cash crunch

General Mineral Rights Discussion
1

http://fuelfix.com/blog/2012/08/31/chesapeake-squeezes-landowners-on-costs-amid-cash-crunch/

2

Ben,


I find the quote interesting and believe it is probably what many think.

“I don’t want to sound like I’m a bitter, disgruntled royalty owner, but this isn’t fair,” Thornton said. “Don’t do sneaky tricks. If it belongs to the royalty owners, it belongs to the royalty owners.”

With almost every lease a little different, is a class action lawsuit even a possibility?

3

Class action in Texas is no longer possible as a result of Texas Supreme Court opinions in the past 10 years, and one of their reasons is different lease terms, but they also state that each individual royalty owner's damages are going to be different depending on well location, post-production costs charged, etc...

4

Ben,

Thanks for posting. This is just pure and simple theft from mineral/royalty owners. Chesapeake is a 'Sneaky Snake' that needs the head cut off.

Clint Liles

5

Well, this all started with Heritage v NationsBank

6

When I read that the Kansas case would be heard without a jury, my gut instinct told me that the fix was in.

7

I just received a check for June production covering several wells and Chesapeake paid me on gas $0.37, that's right a mere 37 cents although they did pay a whopping $0.49 on some, this was on around 60,000 mcf. I am surprised they didn't just tell me they flared it off and keep it all.

8

Mineral Joe,

It's too bad that the mineral/royalty owner can't have these wells legally shut in so that Chesapeake can't do their dirty theft.

Clint Liles

9

Joe, are you having the checks framed or are you sending them back with a note that Chesapeake obviously needs the pennies more than you do ?

Mineral Joe said:

I just received a check for June production covering several wells and Chesapeake paid me on gas $0.37, that's right a mere 37 cents although they did pay a whopping $0.49 on some, this was on around 60,000 mcf. I am surprised they didn't just tell me they flared it off and keep it all.

10

Agree with Ben, as I used to do a lot of class action litigation. it is virtually impossible to get a class certified in Texas state courts or in federal courts in the 5th circuit. In fact, the Texas Supreme Court has NEVER let a class certification stand when it was before them. Too bad, because this fraud by the nickel is what class actions were designed to prevent.

Wade Caldwell