Replies to This Discussion

Permalink Reply by Mike on August 21, 2010 at 6:05

I'd say from the looks of Camterra's track record it's a good thing.

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Permalink Reply by Jeff on August 22, 2010 at 5:40

JJ, you may want to check out Henry's discussion "'what price are you getting for gas" It has some interesting reading for a Chesepeke lease. Nothing you can do about the operator but you'll know what to look out for.

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Permalink Reply by J.J.Jones on August 22, 2010 at 7:37

Thanks for the reply Jeff. After Camterra figured out that they couldn't make any money drilling Vertical wells and they started drilling horizonal wells I believe their track record improved. They were easy to call and get information from. Being a small independent they just could not hang in there with the big boys. Not at 8-10 million a well. I felt like with less leaseses to drill to hbp we would get future wells sooner. Chesapeake has so many sections to drill to hbp it could be several years before we get another well.

jj jones

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Permalink Reply by Jeff on August 22, 2010 at 12:20

As long as the checks keep coming in the mail it doesn't really matter who writes them. Good Luck.

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Permalink Reply by BirdDawg, plain ole' idiot on August 22, 2010 at 13:10

J. J.,
I believe that in the long run you will be way ahead with CHK. They are a proven operator, and maybe in the near future they will get right on the price they pay the MO for gas. Thanks to Henry and GHS (Keith).........

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Permalink Reply by Bill McDaniel on August 24, 2010 at 4:43

Whatever you do, if Camterra sent you a division order like they sent me, I wouldn't sign it. I assume you are in Louisiana. Louisiana law states that a division order is not required for payment. The papers I received looked like a new lease and not a division order and spelled out that I was approving basically any deduction they wanted to include. They also sent a letter indicating that I had a mortgage (probably to delay payments further).
All I returned to them was a letter indicating that I agreed with their percentage, gave them my SSAN and enclosed a W9 form (this can be another tactic to withhold payments). A few months later, they changed the percentage and again sent the proposed division order. Our property either grew or the section shrank. I never signed that one either. The new formula was applied anyway. Is CHK a good thing? Probably not. It looks like you start off losing about 25% of your royalty. If you do not have a no-cost lease, you may lose another 25% in deductions! Good luck.

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Permalink Reply by BirdDawg, plain ole' idiot on August 24, 2010 at 4:48

But Camterra would probably be a disaster.

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