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 Two Dogs, Pirate on October 23, 2013 at 15:03

Maggie, your problem may go back 100 years or more in the past. Some folks were under financial hardships during years past and couldn't afford to hire lawyers to fix heirship problems. I would think that a trip to the local title company (title plant) would reveal many of the title problems/mineral problems you may have. Many charge by the hour to look at the information they have collected through the years. Some could even identify your problem for you.

Permalink Reply by Maggie Bryant on October 23, 2013 at 15:11

Thanks Two Dogs Pirate.

 

 

 

 

Permalink Reply by Maggie Bryant on October 23, 2013 at 14:21

Hi Mr. Smith,

Thank you for the information you provided, We have decided to let the courts decide on this one. If our mineral rights were conveyed why did Chesapeak'es landman from Huntsville, Texas try to undermine Blue River when they found out we had not leased our land in 2011, these people told me I had 3 acres net mineral and they were willing to pay $3,000.00 per acre. I told them we were going to lease our land with Blue River as before. I am going to ask the attorney if we can request the well be closed until this is resolved. Yes they are stealing from us. Yes they are cheaters. I will keep you's informed. by the way I have 20.335 net mineral acres.

Permalink Reply by Henry on October 23, 2013 at 22:39

Good luck, Maggie.  I will be waiting and watching to see if you are successful.  Please, please keep us informed on how this goes.

Permalink Reply by Larry G Smith P.E. on October 24, 2013 at 3:16

Thanks Maggie, I have also been collecting information on CHK and will be meeting with the Louisiana AG sometimes before Christmas to give them every thing I have. I feel that the information I have will allow the AG to open an investigation into CHK's way of doing business. Will keep you posted also.

 

 

1kw6x71km1v37Permalink Reply by 1kw6x71km1v37 on October 24, 2013 at 4:46

In Texas, there is the probability of punitive damages in tort cases. Some years back one of the majors won a multi-million-dollar lawsuit against another major for taking and not paying.

My memory and my computer search abilities fail me on that one, but I'll bet this guy knows that case inside and out:

http://www.lrmlaw.com/Our-People/James-J-Ormiston

Permalink Reply by Maggie Bryant on October 24, 2013 at 5:23

Thanks cheap shot. I will follow up on this one.

Permalink Reply by adubu on October 24, 2013 at 13:29
Maggie---you add confusion to your discussion -- you talk about 20 net minerals and now they said you had 3 acres net minerals which attempted to be leased by CHK in 2011 --- the ideal thing would be to go to court however face simple fact CHK will "out lawyer" You and your cost to fight will be very expensive possible greater than the net future value of your 20 acres of minerals so even if you win you lose. Not a happy situation to be in. I would first see if you could set up a meeting with CHK and go meet and discuss the case--let them show and explain their Title run opinion then you show your Title run opinion --- even if your deeds go back about 100 year there could have been separation of minerals and surface before - you may have to go all the way to original land grant
Permalink Reply by Maggie Bryant on October 24, 2013 at 15:23

abudu,

 I have a total of 20.335 net mineral acres 3 acres from my uncles and aunts who passed away with no children, 7+acres I own and 9.5 acres of the 19 acres my mother left to me. As of today I found out Chesapeake sent out  letters  to my relatives notifying them their payments would be stopped due to Chesapeake over paying royalties to them. As I stated earlier when I called and talked to Ms. Watkins at Chesapeake all I got was the run around . I was first told I had no lease, later I was told they had a problem with the depth, she also promised to get back with me after she did some additional research that never happened. I left 3 different v/m still no returned calls. 1 certified.  They only respond when an attorney contacts them. There is no problem with the title, they are stalling. Do you think the original oil and gas company would have paid $3,200.00 per acre without having a title search done?  As far as hiring an attorney. Attorney's are familiar with  the oil and gas laws. I have to pay someone who does have knowledge and will work on my behalf.  My attorney sent me a copy of the letter he received from Chesapeake yesterday 9-23-13  This letter    really does not make any sense. Their attorney seems a bit rattled by the information he conveyed this time. Remember David conquered Goliath. I have confidence in the attorney who will be handling this, he has dealt with Chesapeake before.I am a cancer patient and I cannot deal with a lot of stress.(multiple myeloma).

Permalink Reply by Maggie Bryant on October 24, 2013 at 16:44

abudu,

I need to make a correction I received a copy of the last letter yesterday 10-23-13. My mistake.

Permalink Reply by adubu on October 25, 2013 at 0:40
Maggie--- when landman does title search run for operator to handle & sign a lease this is not the Final Title Opinion used to calculate Lessor's Ownership it is reviewed in detail by a Title Attornmey that works for the Operator and final mineral net acres used to calculate decimal % lessor owns of royalties produced ---their In house lawyers Title Opinion rules unless proven incorrect -- CHK probably sad for your health but does not care and has no influence on their ruling -you best chance to prove to them your ownership is to meet face to face and share documents ---yes you can go to court but VERY COSTLY for CHK will Litigate you to death you years --IMO small mineral owners are eaten alive in court that just the facts of live-- IMO best possible settlement is to set down face to face at their office discuss I bet they will agree to talk with you --use Honey not Vinger to request meeting --- Good Luck
Permalink Reply by Henry on October 25, 2013 at 0:43

adubu is right -- court costs will kill you for 20 acres.  You need to find some way to speak to them, with all the documents laid out in front of you. 

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