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Permalink Reply by GoshDarn on July 28, 2012 at 19:41

Yep.

And it wasn't too long ago when certain folks were quite adamant (and, y'know, were actually using the "I'm-right" argument, claiming that they were absolutely positive that they truly knew what they were talking about because they erroneously assumed that they really did know what they thought they knew was about to come down the pike with CHK) -- when they proceeded to express the "I'm-right" opinion that Chesapeake was not -- WAS NOT -- another Enron.

Yeah, well -- I wonder what CHK shareholders might think if someone were to turn the CHK logo on its edge . . . so as to mimic that famous tilted E logo that had forever branded Enron's tower of corruption in Houston?

Hey, as the Chesapeake scandal continues to unfold and as the hungry buzzards come home to roost per such near-bankruptcy sell-offs . . . CHK's crooked house of cards is looking more and more (in its own way) like the bleached rotting bones of that titled E.

 

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Permalink Reply by GoshDarn on July 29, 2012 at 7:38

That's true, Jay.

And the reason for my heavy disdain for CHK (even though such an attitude is somewhat unprofessional), is because of Chesapeake's unscrupulous henchmen who repeatedly lied to the elder members of my family, being as the CHK crooks sought to take advantage of some very goodhearted people (who are as honest as the day is long).

Plus, as many know on GHS -- CHK's thieving (across the board with many La. landowners) . . . is a huge black mark to the O&G business, and it sorta taints the other legit operators and the more honest landmen who've done their best to help the landowners of the Purchase with "fair and reasonable" leasing/drilling deals.

Indeed, there are numerous ethical and even-handed operators, landmen, O&G insiders, blue-collar roughnecks, geologists, reserve engineers, state administrators, etc. -- all of whom are doing their jobs as honestly as they can with honor and integrity.

So, the likes of Chesapeake (and their Enron-like disrespectful/thieving corporate culture) . . . greatly tarnishes all of the community good that so many folks have done for the hard-working Louisiana landowners/farmers . . . so as to assist the robust economy of the Great State of Louisiana.

The facts speak for themselves.  Enron was rotten-down, from the very top (which was proven in a court of law) -- as is CHK (which will also be proven in a court of law).  But nevertheless, some GHS members might have had reasonable interfaces with certain folks working for CHK.

Granted.

Yet, just from the posts on GHS, it becomes quite evident that hundreds of CHK lessors have obviously been taken advantaged of, and they actually want to sue the crooks.

Henry's analysis of CHK's pocket-picking pricing is clear.  That's hard facts, not innuendo.

So, even though there are some large landowners (on GHS) who kinda side with Aubrey McCl.'s crooks -- being as these folks might be pleased with their monthly royalty checks per their large-acreage advantage -- yet that does not diminish the sly bite that they, too, are paying.  It's just hurts less for the big spreads since they have such fatter monthly checks to cushion the thievery.

   

GD

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Permalink Reply by bret rothwell on July 30, 2012 at 5:38

Enron Corp was founded on the platform of Internorth Pipeline, of Omaha, then the lowest-rate-based pipeline company in the country, serving the Midwest. Ken Lay had already tanked Transco, another big pipeline, when he went to HNG, Houston's NG pipeline. HNG was starving when Internorth bought it.  Internorth also bought out FNG. the single pipeline of Florida. Belco had preceeded these acquisitions by Internorth, merging with Nortex in 1984, Internorth's E&P sub. Sam Segnar, Pres.,CEO, and COB of Internorth, was seeking a successor, finding it in Ken Lay~ per urgings of bankers involved in thes above acquisitions. (The Belfers would fight Ken through the "Last Taking". Until 1988 the pipeliners were taking the hits...we were producing too much cheap gas in OCS GOM.....product of seismic HCI processing and technology. The pipeliners were faltering under long-term-take-or-pay contracts. By 1988 our success offshore and Reagan ecomonics led to collapse of the E&P sector. In some of Houston's growth suburbs the abandoned home rate was 6-in-10 empties. Today Houston ranks No. 6 in rental and residential vacancies...collapse of the "two wars over nothin" economy and cheap gas prices. In both eras corporate citizenship hit new highs, with the vulture capitalists perched on the nearby dead trees. Aubrey and Ken were simply on the forefront of the new free-market business model, namely when you've outsourced your industry and economy nothing is left but to cannibalized the assets of the weakest individuals......those who don't have access to a corporate lawyer support group. As is reaped in this campaign cycle, this is a "play-to-play" political battle....and unlike the republic for which its stand, winner take all. And Aubrey's personal finances are legally protected, as were Ken's.

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Permalink Reply by GoshDarn on July 30, 2012 at 7:58

Interesting website, Bret.

And your analysis of the TMS is seriously intriguing (vis-a-vis comparing the lower completion costs that are driving the Bakken).

GD

 

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Permalink Reply by GoshDarn on July 31, 2012 at 7:25

ses, I appreciate your concern per posting this thread's topic.

Mineral law, in any U.S. state, is a complex web of give and take to balance the scales of justice between operator profit, landowner "fair" royalty payments, the conservation of natural resources, and environmental concerns.  Also, some states have more favorable regulations to protect the un-informed landowners as compared to other states (in that each state has varying laws when it comes to mineral estates).

Also, in regards to assigning units -- I don't think the La. system is broken, per se.

In other words, the main issue -- per your topic heading -- isn't the assignment of an operator; but rather, it's the falsifications and outright lies of one operator in particular.

And to be pragmatic, since Chesapeake is in a pullback and is on the ropes per being cash short via having made numerous bad decisions and having also inflamed so many landowners with their corporate cheating (which wasn't at all caused by La. landowners) -- the issue now is not one of leasing (or future leasing, per se) in La., since, as far as I'm aware of, they're not inking any new leases (and probably won't be in the short term).

No, the issue now becomes one of court action as how to balance the scales of justice in regards to those who feel that they are/were being cheated by CHK per having already singed a lease with them.

Plus, it's one of continuing NG production, or lack there of, as to how the lessors with CHK will have their leases managed and produced.

Indeed, that's a very complicated scenario vis-a-vis the CHK scandal situation (as it continues to unfold), and one that will continue to evolve over time.

Possibly, the easy hypothetical answer would be a buyout by a reputable operator -- say for all of CHK's holdings in NW La. (simply to define the particulars of such a hypothetical) . . . to sorta begin a mitigating process.

Yet no matter how the CHK scandal plays out, per whatever means of balancing the scales of justice, not all involved will be happy with the eventual outcome.

Note:  The reputable and law-abiding operators should not have to be penalized for CHK's corruption.

To be sure, many folks have heard it over and over again, from O&G insiders, that a number of the other Haynesville operators have tended to avoid CHK interactions (e.g., JV's) for years.  In other words, many insiders have known for a number of years to stay clear of CHK's rotten house of cards.    

The other operators had smelled the problem years back so it's nothing new.

GD 

 

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Permalink Reply by dbob on July 30, 2012 at 12:18

Also, to keep things on topic - the amount of acreage CHK is selling in the Barnett is not large in terms of their holdings or capital needs.  Lets see what the next big deal is.

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Permalink Reply by Nolan H. on July 30, 2012 at 5:57

There appear to be some big swaps underway in South Texas between Chesapeake and EOG. No word yet what these are and who is getting what. Anyone out there have any knowledge of EOG - Chesapeake sales in Eagle Ford?

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