Chesapeake Claims My Lease is Invalid and Won't Pay Royalties

Hello,

My name is Maggie Bryant I am a landowner with 20.335 net mineral acres in Shelbyville, Texas (Shelby County) . The well is Jackson SLB 1H Property No. 639428, this well consists of 382.47 acres. Chesapeake signed a P-12 stating My brother and I had 19 acres pooled in the Jackson SLB 1H well however, they have lied to me on several occasions. I sent them certified letter  however, they informed me I did not have a lease by telephone nothing in writing, the people at Chesapeake would not respond to me in writing only by telephone. I hired an attorney to send a letter to Chesapeake on my behalf, they did respond in writing to the attorney however, they informed the attorney my lease was invalid and that my brother and I had conveyed our acrerage to our relatives which is a bunch of crock and bull. The attorney wrote a second letter to Chesapeake on 9-17-13 requesting they put me in a pay status due to the documentation he provided to them, as of today they have not replied. There was no reply by date on the 2nd letter. I have been going back and forth with Chesapeake since 3/13.  Any person who can read can look at property ID R27663  on the tax records or appraisal districts records and see who is being assessed the taxes and obtain a copy of the plat. The deed is also on file in the Shelby County Courthouse. Can anyone recommend an attorney who is willing to demand immediate payment within 30 days or  take these people to court, all they seem to do is stall and lie for more time. I believe they have paid landowners who were not entitled to payments. Any referrals are appreciated.

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Permalink Reply by bonchase on October 28, 2013 at 8:09

I have to stand up for Chesapeake .  I have been dealing with them since 2008 and have never had one problem or one suspicion that they were not working within the bounds of my  restrictive lease with them.  They have been  helpful when I have called. I know some people have expectations that are not met and I am sure errors are made on both sides.. or rather on several sides as many people are involved in this process. In my case, however, all has gone well.

Permalink Reply by Larry G Smith P.E. on October 28, 2013 at 8:20

I am very happy for you bonchase 8 but you are among the very few for sure. I have been in the Oil Business for a little over 50 years and deal with companies from the smallest to the very largest and have never had the problems I now have with CHK.  I am not alone in this, you are the only one that said you had no problems.

Permalink Reply by Jim McGowen on October 21, 2013 at 4:39

First of all, I am not defending Chesapeake.  However, when a person deeds 19 acres to one grantee while keeping 19 acres for themselves, there are several possible explanations for the result you are experiencing. Perhaps Chesapeake misread the legal description of the property you deeded.  It is also possible that the legal descriptions got mixed up and you actually deeded the one you intended to keep and kept the one you intended to deed.  Mistakes happen.

Rather than spend money on an attorney, have you considered hiring a competent landman to do the title work to find out what the record title shows?  Once you have that information, if the record title shows what you believe to be true, you will then have documentation to show Chesapeake.  They tend to pay more attention to recorded documents than verbal or written demands which are not supported by any documentation.

People make mistakes.  I would get the documentation together, send a polite but firm demand along with copies of the documents which substantiate your claim to the land department with a copy to the vice president of land.  I'm sure you will get a response.  If they do not accept your claim, they will probably tell you why, although they have no duty to tell you why they are denying your claim.

Good luck.

Permalink Reply by Maggie Bryant on October 21, 2013 at 8:05

Jim,

My attorney who wrote the 2 letters sent documentation to Chesapeake on 9-17-13, he sent a copy of our official recorded deed and plat they have not responded as of today. It has been more than 30 days. My attorney sent a copy to Chesapeake's attorney Will T. Jordan 9-17-13.  My next step is to contact my State and Federal Representatives and also the newspapers, after all I am the legal land owner. There is no law written to permit their arrogance in causing land owners to have to deal with their incompetence. The title searches have already been done by competent people.  If they were not sure they could have contacted Randy Muckleroy in Center, Texas, he is the attorney who prepared my relatives deeds for their 19 acres which does not include our 19 acres. He is still alive and practicing law in Center.  

Permalink Reply by adubu on October 21, 2013 at 8:42

Maggie--- It's not about the question of Who is the Land Owner but question is Who is the Owners of the Minerals for in Texas these are two separtate issues. You must Run Title to the Minerals NOT the Land Surface. If property was via Heirship and deeds written to multiple Heirs then the Minerals were mostlikely Undiviend therefore deeds would need to be written for both Minerals and Surface. If land chaged hands over time the Deed must state Minerals RESEVERED  by SELLER otherwise they go to Buyer.  You should review some of article on Mineral Laws in Texas by Ben----click under states and then Texas and then Mineral Laws--- on this site-- interesting Education reading about Heirs, Ownership, etc.--- I personally got blind sided with the Duhig Rule of over conveyance my father though he reserved 1/4 of minerals and no because he said I convey 50% and reserve 50% and he only had 50% therefore all the 50% went to BUYER.----- So bottom line you need a TITLE OPINION with PROOF OF OWNERSHIP OF MINERALS otherwise you waiting time and money plus you will get nowhere with CHK. If you can Prove Ownership of Minerals then you may have to go to Court but only if you can prove 100% without doubt you are the Mineral Owner. I am not an Attorney, but have gone down this road before.

Permalink Reply by Maggie Bryant on October 21, 2013 at 9:40

Adudu,

The mineral rights belong to my brother and I, the 19 acres was left to my mother by her deceased parents. There have been no sale of the mineral rights. I am a licensed Realtor/Broker and I do know when a property is sold the buyer and seller have to agree and sign an addendum for reservation of oil, gas and other minerals. This property has been in my family for over one hundred years. I have a copy of the old field notes from years ago. I am 100% positive I own 100% of my mineral rights. Everyone seems to be confused 19 acres belongs to my other relatives the land and mineral rights they own has a different  legal description stating the metes and bounds for their property. The 19 acres we own has a different legal description stating different metes and bounds for our property. Thanks for the information. As I stated the attorney who prepared my relatives deed in 2001 is still practicing law in Center, Texas, Chesapeake could contact his office for proof of what was prepared and filed for them.   

Permalink Reply by adubu on October 21, 2013 at 10:38

Maggie--- I understand-- You may need to go to the County Clerk Record Office and get copy of the Final Plat and the P-12 filed for record on this Gas Unit to be 100% your acres of minerals are included in  the Plat.The Final Plat must be filed by Operator.  If so with this in hand along with Deeds of your and brother's ownership of the 19 acres of minerals ( Question has deeds been recorded dividing you and your brother undivided Minerals equal between  each of you by the  Adminstrator of your Mother's Estate ) Plus Title Run Sheet--- Then I would sent a Ceritified return Receipt letter to CHK Land Department and request Explaination. They will owe you two years back royalty-- if no lease then I think they paid based on highlest % of any lease they signed in unit but unclear on this--- Talk more with your attorney after you have copy of final Plat of  Unit ---- Good Luck

Permalink Reply by mickiebyrd on October 21, 2013 at 9:35

I feel for you Maggie I have been dealing with them for years and they are crooks. I also am suing them over a royalty matter, and it is correct that it is very expensive to sue them. Your problem sounds like they may have confused your interest with your relatives, but they should be able to figure that out easily. Usually they have a very complete title opinion done before paying anyone and it is very rarely incorrect, but they probably are cutting cost and may have found a cheaper title opinion or they may just have said screw you and are keeping your share as long as they can knowing it is not economical for you to sue.

I suggest you go to their  facebook page and start hammering them every day until someone wants to help you.   Just a thought.  They should have tried to satisfy your concerns by giving you the details of the conveyance they say you lost you mineral interest.

Permalink Reply by Maggie Bryant on October 21, 2013 at 9:57

Thanks Mickey,

I will be giving them publicity if that's what they want. I live in Missouri City, Texas. I will be contacting my State and Federal representatives locally and in Center. Whoever did their title search is either incompetent or very confused. Good luck to you in your battle with Chesapeake. I find it hard to understand why our representatives would allow these oil and gas companies to trample on the landowners.    

Permalink Reply by Larry G Smith P.E. on October 23, 2013 at 8:38

The reason the OUR politicians do not want to get involved is because of WHO is giving them the big Dollors to stay in office.. We have the same problems here in Louisiana. Yes, I have property in DeSoto Parish and yes, I made a big mistak also, trusted a Land Leasing Group that I thought I knew, Wrong again. I leased to CHK and have been getting screwed every since.  If you can not get it settled soon, I would look into filing a Lean on them for not paying you your royalty.  They are in effect Stealing from you. File a lean on the well and shut it down until you are paid in a timely manor.

 

Permalink Reply by eastex2000 on October 23, 2013 at 12:00

Maggie-

I took a quick look at your situation online.   The Declaration of Pooling for the unit does not include the 178 acre oil and gas  lease that you signed in 2011 with Blue River Oil & Gas.  The 19 acres you have referred to is part of the 178 acres described in your lease and is part of the unit.  All the OGLs listed in the pooled unit had Chesapeake as the lessee. 

It appears that their title opinion does not credit you as a mineral owner and they believe the OGL you signed with Blue River is not valid.  There are about 35 people listedin the Delaration of Pooling that have executed OGLs with Chesapeake that cover the 19 acres you referenced.

I think you need to have someone check the record title.

Permalink Reply by Maggie Bryant on October 23, 2013 at 13:52

Hi eastex2000,

I appreciate your checking the unit declaration for me. If you will check page 21 of the unit declaration they have me listed on exhibit B the metes and bounds description. The 35  or so people are my mothers sisters and brothers heirs or people they have sold their land to. I have no idea who does Chesapeake's title  work however, they have  made a mess of this. Look at the deed for Maggie M. Bryant & Claudie Ray Edwards filed in 2006 and the 19 acres you are referring to was conveyed  to Mary Cartwright Thompson, T. C. Cartwright Jr., Raymond Earl Cartwright, Johnnie Ray Cartwright,   Emma Jean Cartwright, Jerlene Wilson, Margie Faye Cartwright Garrett . Those are my late uncle T. C. Cartwright's Sr. heirs his 7 children. 04/01  my late uncle Alfreddie Cartwright, Ora Lee Swindle, Roosevelt Swindle my brother Claudie Ray Edwards and I. Chesapeake is trying to tell us we conveyed all of our mineral rights and my brother and I conveyed our 19 acres also to T. C. Cartwright's heirs. That is not what the deed I have says. I am also on the P-12 they filed with the state of Texas.. If they need clarification the attorney who prepared the documents for my uncle's heirs still practices law in Center, Texas. Chesapeake obtained our lease in 2008 from Blue River there was no problem then.

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