Group
I have a question for you all, I cant find a answer anywhere on page...
History
I inherited surface and mineral rights from my grandfather... Minerals were originally leased in 49 and been passed on and on between companies since then... presently Chesapeak has mineral rights on a very low producing well...
I have been talking with them regularly on what their plans are for these minerals... The pumpjack hasn't pumped for months that I have been keeping track and I am sure its been years... anyway's I have started going into well house and photoing the chart every time I have been in there... I am fixing to mail some of info on well to chesapeak and try to get them to either abandon the well or do something... about 6 months ago I was told by resource manager that they had planned on repurposing the well since it is actually down into the right formation for Oil production and I would hear from a land man by the end of the year... well nothing has happened and getting tierd of waiting and putting up with their lies...
anyways my question is...
am I tresspassing when I go in to take photo's of charts???
Is there anyone out there that has dealt with Chesapeak and has had a good result??? if so what did you do and who did you talk to???
Thanks
Robbie
Robbie:
You need to direct your tresspassing question to the legal authorities. In one sense, the equipment is on your land but on the other hand, you don't own the equipment or I suppose, don't have permission to enter the well house. If someone was in the well house and an accident occurred, Chesapeak would possibly be liable for a lawsuit. Some operators keep these type facilities locked due to this matter. Again, I would get an opinion from a legal source. Also, you could contact the State Agency in charge of oil and gas, provide the information about the well and they should be able to provide the current legal status of that well. In Texas, an inactive well (which hasn't produced in years) is listed as 14(b)2 extension. The operator is required to do periodic downhole tests on the well bore to assure no leakage is occurring.
Robbie, I think you need to ask an attorney. I found a law that would allow me to inspect the books on one of my wells in ND at the well itself or at the company offices during business hours and I would be of the opinion that if nobody was there during business hours, it's not my fault. There may be an equivalent law that would cover you. If the lease had expired of it's own terms because production had ceased, I think it would be unlikely that you would be considered trespassing. I think it's a good thing that you have documented the inactivity. If you think the lease has ended according to it's own terms, I would be consulting the OCC for production information, an attorney and CHK in that order. You may want to determine the status of the well, possibly it is reported as shut in and you were never informed or paid shut in royalty. Look at the situation from as many sides as you can before you approach CHK. Study your lease to see if the lease has ended due to lack of production or non-payment of shut in royalty. You may never need your pictures of the logbook.
Your lease may spell out rights to the drilling floor, as well as rights to double check their figures. Read the lease first.
Yes, you're trespassing unless the terms of your lease allow you this intrusion.
Robbie,
You could be treaspassing, depends on what your lease said. But, my question is? Sounds like the well isn't producing in paying quanity or are they being a prudents operator. You may be able to get a good oil & Gas attorney and get your lease back. Then you could re-lease it and at least get a bonus.
Now if you are asking about Cheaspeak, I would run. They have a lease of mine held by production and they don't go by the lease. They won't answer letters or calls. I would never lease to them again.
Robbie, as you have seen you are probably trespassing when you take the photos. Will they prosecute that? Unlikely. You need to check your lease and look in the drilling clause for the cessation period; usually 60 or 90 days. You might have a savings clause as well that would hold the lease based on certain events or actions. It may be that you can get the lease terminated and your minerals back. Chesapeake leaves a bad taste in many royalty owners mouths.
Robbie, I like to look at things from many angles, if your lease has terminated and you didn't actually sell them the land for the pad, their surface lease could be up also and to me they would be storing well equipment on my property free of charge. Looked at that way, I might want to place a lien against said property for storage. If I am going to place a lien against the property for storage, I need to know the content. Just what exactly does your lease say? Did they think that far ahead back in the 40's? Just because it's oil companies, I don't think they get to make up the rules as they go along and decide they can store equipment for free on your property if the lease has terminated. Have you consulted a lawyer yet?
Robbie...We feel like rw is right. P. was saying before rw wrote his last answer "I believe that if the oil company hasn't sold anything for a year, I think it is, off of the well you could sell all the pumping unit (pumpjack) tubing, pipe or anything that's on the location because I know a man that did it legally". But like rw said you would need to consult someone to tell you your legal rights first. The only thing about consulting a lawyer is they usually are the only ones that profit off of the situation. We don't believe you are trespassing as it's on your land and if their lease is up they are indeed storing equipment on you for free. CHK has not made a very good name for themselves! We have no legal background only college of hard knocks in the oil patch. (This is our disclaimer) lol
Chesapeake allegedly "did not go by the lease" in this case, with MILLIONS of dollars of royalties at stake:
http://www.star-telegram.com/2013/03/14/4689707/ed-bass-other-plain...
What was CHK thinking? These aren't mineral owners who can't raise the cash for a lawsuit!
Pete Wrench said:
EXACTLY! I would NOT bet against the Bass Family, not in a Texas courtroom, that's for sure. These are some very well respected persons in the Fort Worth community.
Undoubtedly, there are several operators "skimming" from royalty owners, but as you said, unless one can hire a forensic accountant and a bank of lawyers, what to do? I am pretty sure that I got short-changed on my last royalty payment from CHK, but it was for royalties on less than an acre. So the lawyers would eat up any difference in royalties in the first phone call!
Pete and R W,
I don't think we will be getting short-changed much longer if Ed Bass is taking Chesapeake to court.
First, Daniel Charest is one of the best high-stakes litigition attorney's in Oil & Gas with the Susman Godfrey Group in Dallas. They don't plan on losing. Ed Bass knows his way around the courts. Lets all watch this suit, I bet Chesapeake will change their way of doing business after this or they will be out of business. Pete, I'm with you on getting short changed by CHK, but my acreage is to small for the cost. A person can get several thousand in a court case fast.
Robbie,
Does you lease state they have so many months to get the equipment off your property? If not, do not touch the equipment. I would write the company and sent them a equipment storage bill. So much a month for each month since your last check. If that doesn't work and you live in OK, I forgot where the property is. You can call OERB and they can help you.
Ok, I think my question wasn’t as clear as needed…
My original question was meant am I trespassing if I go inside well house to take pic’s of the charts??? All the equipment is still hooked up and not as storage…
But is funny that we started talking about short changed on gas by chesapeak, cause I have wondered about this also…my hey have showed a month without production off well but when I was there at the well could here gas running and chart from what I understand was showing, but I didn’t take pic… That’s why I now take pic every time I go out…
Thanks
Robert,
I am sorry, I should have read back to the beginning. You can take pictures of anything outside the enclosed area with out any problems. You need to take a notebook and keep records. Like the date, time, etc. Noes, could hear Gas running, etc. If you can take a picture of the chart each time, that would be good. If you camera has a date, set it and that will help.
Now the question is? Is this the first time you didn't get a check, maybe your check was under $100 because gas prices are low. If so, they have the right to only pay you when your check is over $100 and that may be a few month on low producer wells. I'm still trying to figure out what is in the well house and why do they need it. Are they using your property for storage? Do you have a clause in your lease regarding non storage. This is why it's so important to put lots of clauses in your lease. Does your lease say you have the right to inspect any and all property? How many months does your lease say they can go without making a payment? Is the well a non-producer? Lots of question that goes down to what did you sign?
Robbie,
I read your original question. I bet a good attorney could get your mineral back for you. But it will cost a few thousand. What state is this well in? And have you got a check within the last year?
Virginia, I don't think it should matter if there is a clause saying they have to remove the equipment after the lease has expired. If the lease has expired, where is their right to enter the property? If the lease is expired, how could it be that Robbie is not being damaged by the loss of use of his surface? I believe that you have a point that it's good to have protective clauses but I believe that the natural state is that Robbie has a right to his surface, and if the lease has terminated, the operator has no right to be there, unless the lessee put a clause in the lease that says they can leave equipment. I don't believe there was any unspoken covenant assumed in the lease that an operator can leave equipment after the lease has expired. My sis-in-law has two apartments that she doesn't rent out anymore because of deadbeats, having to evict and they usually trash the place while not paying rent before they can be evicted, but you can run deadbeats off, just because they paid for the right to be there at one time, does not give the right to stay forever for free and I think it would be tough for a lawyer to argue otherwise. I believe that the lessee needed the clause, not the surface owner.
Virginia Pflum said:
Robbie,
Does you lease state they have so many months to get the equipment off your property? If not, do not touch the equipment. I would write the company and sent them a equipment storage bill. So much a month for each month since your last check. If that doesn't work and you live in OK, I forgot where the property is. You can call OERB and they can help you.
Virginia, I hope it's so but, and there is always a but, I think the lawsuit may give the Bass brother immunity from being short changed, I don't think there will be sweeping changes. Even with a precident, you still have to be cheated out of enough to sue, and probably actually have to file the suit, individually, before CHK will give up such a profitable activity as underpaying.
Virginia Pflum said:
Pete and R W,
I don't think we will be getting short-changed much longer if Ed Bass is taking Chesapeake to court.
First, Daniel Charest is one of the best high-stakes litigition attorney's in Oil & Gas with the Susman Godfrey Group in Dallas. They don't plan on losing. Ed Bass knows his way around the courts. Lets all watch this suit, I bet Chesapeake will change their way of doing business after this or they will be out of business. Pete, I'm with you on getting short changed by CHK, but my acreage is to small for the cost. A person can get several thousand in a court case fast.