We have signed our lease with Chesapeake and also the unit agreement for our portion of minerals in Converse County, WY. Chesapeake issued a collections draft to us, which has been given to the bank. The draft was to expire yesterday (the 15th) but they extended it until today. Now they have extended the expiration until Friday.
Has anyone else run into this problem? Is this common practice?
Common, especially with CHK … see the detail notation on the draft “30 Banking Days” … that means they don’t count Sat-Sunday or hoildays, a trick to extend out the pay period and oftern makes for a difficult to determine final date, doesn’t it?
The clock starts when the draft is received by Chesapeake’s bank. When the draft is due, Chesapeake’s bank mails a check to your bank to be deposited in your account.
Yeah, they mail you a check alright… that’s if they don’t cold draft you.
I agree with Mineral Joe on this. You are also at risk of having to pay a lawyer (as I am doing right now) to void a lease they recorded and never paid for. Don’t let a signed and notorized lease leave your hands until you have a form of payment that gives you recourse, ie, a check. Honoring/paying the drafts (collection items) they send along with the lease is totally optional.
Just wanted to add that the draft did go through, so Chesapeake was good on their promise. It was delayed by a few days, but overall I have only positive things to say.
I have also been contacted by this same company for our portion of minerals in WY. they were unable to reach me as i inherited these rights, so I just recvd the certified mail today and the pressure is on to sign asap. Did they give you a signing bonus per acre?
Any help I can get is appreciated as I am new to all of this. Thankyou!!