CAPLIS-SLIGO ROAD RESIDENTS RECEIVE UNETHICAL BUSINESS PRACTICES IN REGARDS TO LEASING MINERAL RIGHTS!!

In 2005 (and prior) my neighbors and I were approached by individuals affiliated with Chesapeake in regards to leasing our mineral rights for $100.00 per acre, etc. At the time, it seemed somewhat acceptable, I guess. It is somewhat strange the telephone number for the individual I dealt with in '05 has ignored my recent phone calls and the voicemail is full.

Now this is an eye-opener, get ready to be shocked.

March 2008; Weeks before we, the residents of N. LA received "breaking news" of the Haynesville Shale, my neighbors and I received checks via certified USPS for $100.00 per acre; note keyword "check" (not draft). Not only myself but many other residents owning property on Caplis Sligo Road accepted this little to nothing amount they offered. We, the residents were uninformed of local gas drilling and findings thus it seemed reasonable-- same amount as our last lease; nothing was thought of it.

We, the property owners in this area are disgusted and feel manipulated by Chesapeake's unethical leasing campaign. It is awful this company believes that the mailing of checks to reinstate your lease was conducted fairly and ethical. Without doubt, they knew they were ripping off people, sadly it was done intentionally on their part. Yet, this company- Chesapeake states they are "Doing the Nation a World of Good" to which is broadcasted all over their website. Now as I drive throughout Shreveport/Bossier, advertisements on billboards from Chesapeake states, " We are for the people." Hmph!

Apparently Chesapeake believed sending a check with a disclaimer printed on it, no additional paperwork included, was going to do our community a world of good. Once checks were deposited, lessor agreed to the prior lease agreements which apply for an additional two years. At this point, I am shocked I didn't receive a letter from their corporate office-- "Thank you for allowing us to deceive you in addition to ripping you off! We appreciate the fact you have a lack of education on mineral leasing... We certainly appreciate your business."

I am unaware if other companies participated in this unethical business practice, let it be known Chesapeake was! It doesn't take a rocket scientist to know all the oil and gas companies which were popping up locally (approximently within the last two years) were aware of these "hot-spots" before it was made public in late April & May 2008. Who honestly believes any oil and gas companies would release their findings, making it publicly known within days after their discovery? We all know this event did not "go down" in that fashion, it was kept a secret as long as possible.

I spoke to a CORPORATE LEVEL employee at Chesapeake regarding unethical business practices utilized by "such a caring company." I received poor assistance and no explanation was given on why residents were not informed a month later. Coincidentally, it was made public once the deadline on the checks were dated. I also expressed my thoughts regarding their full intentions on sending out checks to individuals with "cash-by this date or voided" to ensure people would cash them. All in all, they win.

Perhaps they should post the comment their corporate employee stated on their billboards, "If we knew this was going to be as big as it is, we would have leased out to the entire area before other companies could have the opportunity." Hmm.. something like, leased out to people before they were informed of the Haynesville Shale for $100.00/acre! He continued to beat around the bush, informing me they were unaware the Shale in March. Throughout the conversation, it was obvious he felt compassion yet he continued to stand behind this seedy company.

I am now aware of Chesapeake's unacceptable business practices, including but not limited to taking advantage of landowners. It is sad to know that oil and gas companies are practicing unethical behavior to insure they will make millions while ripping off hard working American citizens not only in South Bossier, but the entire country.

I have contacted several attorneys in the area for legal advice, to my surprise they are all somehow affiliated with these manipulative, uncaring, useless oil and gas drilling companies.

PLEASE DO NOT MAKE THE MISTAKE THAT MY NEIGHBORS AND I DID.
EDUCATED YOURSELF ON OIL AND GAS MINERAL LEASING!
JOIN IN WITH YOUR NEIGHBORHOOD GROUP! DO NOT SETTLE FOR THE FIRST, SECOND.. NOR TENTH OFFER-- MAKE THEM PAYUP as they deserve to!

Any information on disputing a lease that was accepted by cashing a check would be very helpful and appreciated. Please let me know as I will inform my neighbors. Thank you.

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Replies to This Discussion

Permalink Reply by Kassi on July 26, 2008 at 9:25
Ok, I was going to stay out of this one but I have to say Randy is right here. The leasing companies are told what the O&G company wants them to know. It is possible the land men had no idea things were going to get this big. The O&G companies had a good idea as is evident by the Chesapeake CEO putting over $100 million of his own money into Chesapeake stock over the last 2 years but that does not mean the landmen in the trenches knew. How many of us working each day for our companies are aware of what is going on in the coorporate boardroom? In all fairness give the benefit of the doubt here folks...
Permalink Reply by jim neely on July 27, 2008 at 12:24
hk recorded our lease but did not send the check as required by the draft language . after allowing for the bank days and time for the mail our banker , the banks lawyer and our lawyer called them to state the check was due . they replied the check was in the mail . upon receipt of the check some days later the post date confirmed our opinion they lying . we sent the check back and asked for a release based on their failure to perform . it sounds like they o& g companies want it both ways and up the middle . i'm sure a jury of my peers will agree that's unfair .
Permalink Reply by Randy on July 27, 2008 at 15:10
Your in the right sir.
Permalink Reply by CMI A1 on July 25, 2008 at 10:10
Randy- If that is all of the compassion I could show to this man, I would not have said anything. That statement does not make you look good. Yes there is a legal side to this, but there is also ethics. You can't lay down at night and know in your heart that was ethical or right. Lastly, why did you feel the need to speak for the "rest of us" ?

To Taken Advantage- I want to start out by saying that I am very sorry to hear about what happened to you and your neighbors. I agree that you were taken advantage of. These big O & G companies snuck around with these kinds of practices and now proudly make big donations to help various organizations. They always tip toe in quietly to take advantage of people, but stand on the roof top and every TV station screaming loudly when making a donation to some charity... hoping to win favor with the public after sticking the screws to them. I wish I knew of someone that could help. I am praying that you make out like a bandit on the royalties.
Permalink Reply by Taken Advantage 71112 on July 26, 2008 at 0:06
CMI A1, thank you for your compassion and giving prayers on the 1/6th royalties stated in the 2005 contract; I pray too this will hopefully pay a little something if we are unable to pursue legal actions against this company.

I actually mentioned to the corp individual at Chesa-scamers how could someone of his position tell me that they did what was, they claim fair. I then asked him if he was taken advantage of, stepping outside his position, how would be feel. He didn't say one word and I replied, "I hope you can rest in peace nightly knowing your participating in this unbelievable companies activities." I informed him I would like to speak to a member of Operation in Business Practices, without shock he never contacted me back. Again, thank you for showing compassion as we are upset and literally depressed over this; it's an awful feeling.

You have already made my day before I head to work
Permalink Reply by Taken Advantage 71112 on July 25, 2008 at 23:55
Apology not accepted, are you the new elected voice for all landowners involved in the Shale?

If you are professionals outside of O&G companies, you will never be certain of every little detail, etc. Praise you for being intelligent and insulting me.

Legal contracts are perfectly fine when they are presented in "good-faith" but this legal contract was intended to rip off landowners with sending a check with no additional contract included. No questions. The lesson to learn for the landowners are NEVER trust a O&G company again. Their lesson to be learned is karma, it hits back hard.
Permalink Reply by elgato on July 25, 2008 at 9:45
TA 71112: check your original lease paying particular attention to primary term and optional term language. Did CHK have the contractual right to exercise an option under the same terms as before? And could they exercise this option by merely sending you a check? Basically, if you never agreed to clear terms they cannot simply reconfect another lease by sending you a check. But I'm afraid that CHK has got this one figured out :(
Permalink Reply by Taken Advantage 71112 on July 26, 2008 at 1:01
Sadly the contract dues specify a check can be mailed to reinstate for an additional two years. I will continue to contact a local attorney that is currently fighting several companies with disputes. LA laws has a statue stating the company must inform findings prior to sending sending a lease or check. Without doubt, these O&S companies knew this was here before March.

I will assure everyone if nothing is resolved from this, in two years they will be paying for their mistake. Thank you for your information in "what to review" in the contract. Have a blessed day.
Permalink Reply by The_Baron on July 25, 2008 at 9:50
More than likely they were exercising the option to extend that you had already agreed to.
Permalink Reply by Renee S Cd1 on July 25, 2008 at 9:53
Baron - Can I get you to go over to the thread "MATH..." and chime in on right of ways?
Permalink Reply by Taken Advantage 71112 on July 26, 2008 at 0:25
I am with you sue T&U, please refer to my reply to easttexas12. It would be moral for these O&G companies to pay more monies and give additional royalty percentages. Once I talk to the two attorneys I am aware of that are filing suites currently with certain O&G companies.

If I could get help from others outside my area in informing effected landowners of this website with listing of other individuals ripped off by Chasa-scamers and other O&G companies.

I will be willing to create the website and post all effected landowners daily if others would spread the word the website. I have made several webpages and a mac user thus I have all the tools at my fingertips.
Permalink Reply by LYNN on July 26, 2008 at 10:34
This is not the only o/g company doing this. I know a lot of people that were sent renewal leases from one company in the last few months.

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