Replies to This Discussion

Permalink Reply by Two Dogs, Pirate on July 10, 2013 at 13:29

As a Landman if someone changes the contract after being turned in to be recorded it is a criminal offense. My contracts are all notarized at the time I turn them in. All lessors have the option of having an attorney examine the contract. Some attorneys are better than others when it comes to oil and gas leases but many times one word could change the whole meaning, according to some higher court decisions. I am not an Attorney and do not practice law. Everyone needs legal council at times and should really consider this when signing something that could have an impact on their rights for maybe 100 years or more into the future. As an Engineer you deal with science which many times is cut  and dried in a court of law as gospel, whereas court decisions on many other things seem to float around on clouds and could vanish tomorrow depending on which way the wind blows in a court of law.

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Permalink Reply by Dion Warr, CPL on July 11, 2013 at 18:25

Larry:

My name is not Sir, as I am not a member of the nobility, it's Dion (I work for a living). I am afraid you miss my point. My point was to illustrate that once you turn your work in and your job is completed, it makes no sense to blame you for whatever your client might decide to you with your product, particularly if it runs counter to what you may have ever been informed as to intent and purpose. So give the lease broker a break, even if you feel suckered or want to kick yourself over the "he went to school with my kid" thing.

I might feel differently if the lease broker that acquired the lease from you was sitting there in his client's office telling him to stick it to you, cost-free royalty paragraph aside. But given that the nature of the complaint and similar complaints from various mineral owners that signed with various lease brokers working for the same client, I think that you are assigning too much blame to your lease broker. It's your operator that not paying you the way you think you should be. How they are paying you, right, wrong, or otherwise, is based upon your contract, and the interpretation and direction of management and corporate legal.

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Permalink Reply by Larry G Smith P.E. on July 11, 2013 at 23:43

Dion, I do not blame the broker that much but some things that I was told by him was not true, I do blame him for streaching the truth a bit too far.  After all, he is a sales man and only gets paid when he gets the lease signed. I do blame CHK 100%, they are not legit oil people, the kind of people that I was raised by and with and have worked with for over 50 years. I have had my own business, Oil related, since 1968 and did ten's of thousands of dollars worth of work for companies with nothing but a hand shake. That changed sometimes in the 1980's to you had to get a attorney to draw up a contract, notorized and had to have loop holes for both parties. I still do work for and in the oil industry and only ask for a written contract if they insist on it.

Permalink Reply by GoshDarn on July 10, 2013 at 8:54

Mr. Smith:

In regards to CHK's so-called "free royalty" clause that certain GHS members had requested to be added in as an addendum to their leases before they would sign with CHK -- you are, yet again, correct.

Examples of such "cheating" were discussed on GHS many months ago.  And the landowners were irate when they found out that the no-cost clause that they'd specifically asked for was basically worded to CHK's advantage, meaning that it wasn't actually a "cost-free" clause at all.  No, it was an intentional misrepresentation since CHK still deducted expenses once the well was drilled.

Another interesting insight in regards to CHK is that an employee working for another operator had specifically told me one time that many insiders have known for years to avoid any dealings with CHK, i.e., other operators knew not to JV with CHK.

Also, most of us understand why folks will advocate for the defense of their own career field.  It's understandable.

And most of us who've had families leasing for many long decades are thankful for the honest landmen, yet we can't help but "spit" when the less-than-honest rogue bullies come a callin'.

But that's life.  You gotta just be careful who you trust these days. 

Finally, I see you have a number of landmen offering you their advice.  Just know that even though the majority of GHS members seem to be landowners and mineral owners, their lurking on this issue and not posting to support you does not mean that they aren't on your side, Mr. Smith.

Most just don't want to weigh in, is what it looks like to me.

Nevertheless, your help to others has always been much appreciated.  And it's clear that the main issue with you is not all operators or all landmen.

No, you simply are focused very specifically on one crooked operator, i.e., CHK -- i.e., an operator that is notorious for its chicanery.

And I would submit in regards to most landowners' opinions, that the majority of honest/hard working landowners would be behind your effort to take the illegalities you've uncovered to the AG.

That's the AG's job.  Let those taxpayer-paid civil servant lawyers decide.  So I'm at a loss to understand how anyone who claims to be on the side of the landowners would suggest that you "not" go to the AG.  Makes no sense to me, unless they've possibly done work for CHK before.

Like the crooks on Wall Street, if no one complains or ever steps up and does anything (short of the hundreds of lawsuits that have presently been filed against CHK) . . . then the public will not only blame CHK for the fraud but will also blame those regulators who didn't do their job.

Keep up the effort, Mr. Smith.

Take care.

   

 

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Permalink Reply by Larry G Smith P.E. on July 10, 2013 at 11:22

Thank you Sir, you are correct, I am not against Oil/Gas companies that are honest in their dealings. After all, I am and have been associated with the Oil and Gas Industry since I was 18 years old, with just a few years bread for Military and College. My Dad was from Pelican, LA and started working there for the old Standard Oil company, I think that was the name. He was 19, just out of High School and went to work on a crew that were installing an 8" screwed and coupled pipeling to get oil to a new station that was also being built just out of Pelican, LA. They were digging the ditch by hand and making up the pipe by hand. When the line was complete, he was hired to work in the new station. He left there after a few years and went to work in the Smakover Field in Arkansaw. I have 4 pictures of him and the rig there. So my roots go way back in the oil field. I have worked in just about every phase, from kitchen help at a Texico Camp to derrick man working in Lake Pelto out of Houma, LA for Texico. Received my Degree in Electrical Engineering 11 years after I finished High School and went to work in the Corrosion/Cathodic Protection fiels in 1962 and have been there ever since.  I love this field and am not trying to distroy any company, I just want them to treat the Land Owners/Royalty owner correctly. 

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Permalink Reply by P.G. on July 4, 2013 at 10:50

If only the EPA were like our AG....huh?

I mean our AG sitting in the office waiting for citizens to bring them some evidence before they would investigate potential violations...

Looks like the checks and balances supposedly designed to keep the players honest are worthless..

Unless one has the financial means to sue...one is pretty much SOL.....

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Permalink Reply by elizabeth person on July 4, 2013 at 12:45

I got no letter in with my monthly statement. lots of new figures on the top part, but no

explanation about what they were about.

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Permalink Reply by mickiebyrd on July 9, 2013 at 5:46

Biggest thieves out there. I would advise everyone not to deal with them at all.

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Permalink Reply by Ms. Jessye Roux Conner on July 9, 2013 at 9:54

I give up , evidently I'm not where anything will happen, nothing is ever to our good. So " Best Of Luck To Everyone & "God Bless ".
JRC

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Permalink Reply by Larry G Smith P.E. on July 10, 2013 at 0:01

Do not give up Jessye, it may take time but we will win. Quitters never win and Winners never quit, that is my Motto. I will not stop till I get all the information and get it out for all to see.

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Permalink Reply by Ms. Jessye Roux Conner on July 10, 2013 at 16:30

Dear Larry, Thank You ,for your encouraging words. I'm by myself , I don't understand this kind of talk Are what is really going on. My family gave me the shaft when my Parents Died. I just fill mentally drained . But I was always hopeful because my Dad. Said it was there & lots of it, coming from She'll Oli Company in 1986. So please keep in touch with me, I would appreciate it. Again , Thank You, for your caring thoughts. I needed that.
God Bless " You & Your Family ",
JRC

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Permalink Reply by Larry G Smith P.E. on July 11, 2013 at 6:52

Jessye, I sent you a friends request. I want to send you a private messege and can not do that unless we are friends in here. I need to ask you a question about your lease/property and would rather not post a lot in here. Too many BIG eyes and ears that are not necessarly on Our side of the fence. Larry

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