Cheasapeake Making more Friends (NOT)

There seems to be a trend developing with Cheasapeake. First they backed out of a deal in Keithville then said they would pay. The Greenwood Deal now seems to be a big maybe even with Drafts sent out by JPD . Now Cheasapeake is telling JPD to extend to JAN with stipulations added. Now today on TV-12 they have been caught again changing an offer from 15k to 5k. This is the company that has been advertising non-stop on radio and TV about how they want to blend in with the community. What is next for Cheasapeake? They are setting themselves up for a public relations nightmare in this area with Deals like these. I doubt people will forget this sort of thing. I would use MUCH caution when dealing with this company after seeing what they do.

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Permalink Reply by Weto on October 23, 2008 at 16:47
What Chesapeake failed to realize is that some of us will get attorneys and some of us will take them to court. Did they way this option? No what they probably thought that a lot of us could not afford an attorney and would be intimidated by the big company. I think that this was their plan the whole time. The shot up the price, got what they wanted, eliminated the smaller companies or put them a different playing field and now they can't do anything. Who is left holding the most?? Chesapeake.
Permalink Reply by Antsu-in-Japan on October 23, 2008 at 18:30
Definitely so, Weto! Already heard of movement regarding landowner options and lawsuits...much luck to them!! (They should have known better to dangle money like that in people's faces then change their minds, regardless of the economy.)

Now, I'm not an O&G person but you would think that they have in-house staff whose only job is to forecast such changes in the economy. I suspect they saw this coming before most of us did...just played this out to their advantage. Now, they've got people so afraid they won't lease anything, that landowners feel they should settle for little to nothing while people in O&G management offices and on boards walk away with billions. Asking them to "share the wealth" via fair business for all in the shale probably smells of 'socialism' somehow to them!
Permalink Reply by P.G. on October 23, 2008 at 17:11
Things could be worse! Unleased folks could have only gotten a couple hundred an acre like many folks did and no wells in sight! And if leasing just happens to pick back up, won't be able to participate in a better deal until the 5 years runs out!
There's no lawyer who can fix that!
Permalink Reply by Antsu-in-Japan on October 23, 2008 at 18:34
Yep....that's why I can also see this CHK reversal as an opportunity for my family! We have been blessed with additional time in which to get our house in order in regards to in-depth knowledge regarding natural gas. As my father so eloquently added this morning: "Time is on OUR side."
Permalink Reply by Iris on October 24, 2008 at 4:44
Antsu, I like your thinking. At least for me age has brought some wisdom..In the long ago past i was willing to sell surface property if someone had offered a good enough price. Thank goodness or whatever they didn't....now maybe I have more time to get my house in order (mineral rights).
Permalink Reply by Janny8 on October 24, 2008 at 0:47
5 years????? It has been my understanding that in Louisiana you have to wait 10 years with no drilling in order to be free to make another lease contract. I have one that just ran out this year (Year 11)
Permalink Reply by Janny8 on October 24, 2008 at 1:12
Thanks KB. I had it mixed up. You are so right. It was one of those old age brain far**
Permalink Reply by George III on October 27, 2008 at 7:19
KB, I have a technical question- I have acreage in the Greenwood - Waskom field- there is a producing well there but this well has been shut in for periods of as long as 6 months- on several occasions, from the 1980's foward- I am told that shut in payments can't really hold a lease in Louisiana- even though they can be used to hold a well in Texas-I'm told Louisiana law and court rulings have said that a shut in payment won't work to hold a well, and a gas well can only be shut in if the pipeline is broken(or similar maintenance problem)- a gas well can't be shut in just because the producer doesn't think the price for the gas is high enough. If this is true, the old lease on my land may not be good enough to hold the deeper Haynesville rights, and the existing Travis Peak well wouldn't be able to "hold by production" since there were lengthy gaps of non production, which means the lease would have expired. Of course, a Pugh clause would have made all this easy, but alas, we do not have one in this "standard" lease from the 80's. What do you think? Do we have a shot at claiming the deeper (unproduced) Haynesville formation? Has this old lease with a Travis Peak well tecnically expired because production was interrupted for periods of 6 to 8 months?
Permalink Reply by P.G. on October 24, 2008 at 1:43
I was thinking of the 3/2 lease. The lease can be extended 2 years after the primary, turning it into 5 years.
Economic times may have put a hold on production in the near term but sooner or later our N. Gas will become needed.
All these promises of alternative fuels are merely buzz words of politicians. N.Gas is real. Even if they start using N.Gas now, it will take several years before it can displace enough foreign oil to make a difference. How long will it take some yet to be invented alternative to become viable in commercial quantities? I don't believe Americans have that kind of patience. Falling oil prices are going to help get the economy going again but they are falling for the wrong reasons. They can go back up and we will be back in the same boat we were just riding in. It's just a matter of time before the O&Gs come lurking around again. They'll have a much tougher time fooling folks this next time though!
For those who missed the big bonuses because they procrastinated, they will get another chance. If enough time goes by, maybe even those who got shafted with lousy leases will finally get a better deal as well.
Looks like what comes around goes around. Those who recently told those who got sucky leases to quit whining should perhaps quit whining now, huh?
Permalink Reply by Antsu-in-Japan on October 24, 2008 at 4:38
I have been a member here for a few months. During that time I have received priceless advice and suggestions from many of you. Please know that I really appreciated your help.

P.G.~ I don't think anyone in here has whined or is currently "whining." Actually, I think it's more about joining together to offer support to those in the community who may need it. Furthermore, I think there were MANY people in here who were very supportive of those who felt their prices were not high enough or who were bullied into signing leases early on.

Some of us have signed contracts; some haven't. Some have made millions; most won't. Other than the fact that we share a common geographical area, none of you know anything about me or my family. So honestly speaking, I never posted my feelings regarding CHK with expectations that anyone in here would be empathetic/sympathetic in regards to my situation. BUT I must add that I feel VERY BLESSED to see that some of you are. Thank you for spreading something "positive" around in the shale...very much appreciated, indeed.

YES...I agree that what comes around goes around. I never once made fun of others who were faced with shale-related "misfortune" (whether real or perceived!). So NO...I don't believe our missed chance was some kind of bad karma or a result of spitting in the wind or excessive greed. My family was unable to sign this time around but we aren't upset about the missed money; we're upset about the deceit that was thrown our community's way!! Anyway, I was taught that everything happens for a reason and good will come in its own due time. Stay blessed!!
Permalink Reply by P.G. on October 24, 2008 at 4:49
Could this be a lesson learned twice?
I mean those who weren't approached until after the shale news broke got a front row seat in seeing how so many got what I would consider a bum deal from the leasing companies because of what they surely knew and those they were leasing from didn't know. If they would do that to those folks, why would anyone think they would be treated any better?
There's no such thing as personal feelings when it comes to the OGs. It's only about the money! OGs get their advice from their lawyers!
Good faith doesn't exist. Only what's legal or not exists.
I would think by now everyone has had enough lessons from those folks!
Permalink Reply by Antsu-in-Japan on October 24, 2008 at 5:10
No, we didn't expect to be treated any better. We didn't even hear anything about the shale until late May...and we didn't get in a group until late July. We were hoping to learn something about the industry to help arm ourselves with knowledge so that we wouldn't be in the same awful situation as some others I had read about. Everything was so rushed. Glad for the downtime...

Yes, I have learned a lot here in this site from you guys but it's really difficult working with a group from overseas. By the time I do get information, it has already been acted upon. Can't really complain as this is pretty much the only group in our section that has not signed. Everyone else in the community signed on months back. Anyway, the next time around, we'll have a little different approach ready when it comes to negotiation. Thanks for your comments...

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