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.
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.
Views: 212
Replies to This Discussion
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Permalink Reply by RL on
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I am really sorry this happened to you and your neighbors. My son and his neighbor received checks in the mail and I told them do not cash them. They didn't and now they are about to receive several thousands dollars instead of the $250 that later went up to $1,000. They both have regular city lots in Shreveport.
The best rule of thumb is to take time to check things out. That is what I did. I got offers but never a check in the mail.
There seems to be a movement underway for some sort of legal action to try and get at least half of what the going rate is. Short of this, I hope you get great royalties!
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Permalink Reply by M. Mcwilliams on -
I do have sympathy for those who this happened to, but one problem I see with people wanting to now get the "going rate" is in trying to determine what "going rate" might be fair. In February, people were being paid $100 - 200 for leases. In March, the announcement of the Haynesville Shale was made. In May, I started hearing about the then-unheard of prices ranging towards $5,000. Then things went to $12,000, $15,000, now up to $20,000 - and up! What price would people want to settle at? How in the world would anyone decide what is fair in this kind of crazy, speculative atmosphere?
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Permalink Reply by Foxiecajun on
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Here is an example of what are on all most all of the lease down 191 in the Stanley area where my land is. Chesapeake has been assigned all of them although they were leased by SGS and PanAmerican. With Porter and Ass as the broker.
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Permalink Reply by Taken Advantage 71112 on
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That disclaimer was included in our lease from 2005. This apparently is Chesa-frauds "must include" clause for all their leasing documents presented to customers.
This company is bad news.
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By no means am I wanting to receive the current going price, their should possible be a medium point between the date contract renewed to current date. Which would probably be end up being half-going of the going rate.
That would be only fair.
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I always enjoy your level-headed and logical responses. You're right, this happened overnight practically. The turning point was sometime in April, a LOT of people got caught on the wrong side of the turn though, even many large-acreage supposedly knowledgeable landowners.
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Permalink Reply by M. Mcwilliams on
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herefordsnshale,
I would hope that I would be accepting if it had happened to me. I only have 2 acres, so I have no chance of becoming a millionaire anyway. Maybe I'd be mad, I don't know. Most of my neighbors leased in 2006 for around $200/acre. I was offered a lease last year, and just procrastinated on it. I could get stuck if the company decided to drill a shallow well with the leases they hold. No one would really care about my 2 acres if that happened.
I just don't see how anyone can pinpoint the going rate when the prices have varied so widely across parish lines and over a short period of time. That's the problem with lease bonuses, they're all speculative to some degree, so it's hard to put a fair market value on them like you could on land.
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Really and truly, I don't know what lease bonuses in my area (Central DeSoto) are now! From all indications I think they are less than at the "ground zero" area of northern DeSoto and southern Caddo. I would guess somewhere around $10,000 to $15,000 I know many people in this area leased back in May and June for the bonuses in the $5,000-$7,500 range. I leased in 2006 for $150 an acre, I have 50 acres in that tract so I guess I could say I lost somewhere between $250,000 and $750,000. I'm not happy, but I'm not bitter either. It's just a matter of I got caught on the wrong side of a huge upswing. I'm still optimistic though, I'll either get a chance to re-lease in 2010 or I'll get royalties.
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RL, thank you for your compassion for my neighbors and I. We had never received checks, this was the first. We were ignorant to the fact of findings yet the O&G companies were not. I hope and certainly pray there will be a movement for this as times are hard right now and they literally are drilling right from my property. I need to investigate more into this. I would consider the half-rate but it will never replace the anxiety and stress this has cause myself and my wife whom suffers from medical problems.
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I also feel as a victim, I live in Sabine. It is my fault for not checking the lease out. I now am held by production of a vertical well. So not all is so bad. I did miss the big bonus though. Pennical Oil leased all around us, put in small wells and put people in production and then gathered up all of out leases and sold to CHK for 5 million. I feel wronged also.
I want people to be aware of this also. If you read your contract, your deed may state 52 acreage, but your o&g contract may say 48 acres more or less. Now that phrase more or less will get you when acres are leasing for this much. Just be aware. If they pick up two form me and two from everybody else, gosh look what they have for free!
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Permalink Reply by Snake Stewart on
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Hello Ms. Jo Ann , there are many things that have been learned at the expence of the misfortunes of others like yourself. The only thing worse then those misfortunes would be for us , the unsigned , to not use the information that we have gained from the deals that were so abusive to you guy's. I am deeply saddened by the loss of opportunity that some will never gain. Hopefully all areas will be drilled and produce enough royalty for us to try to forget these horrendous early deals.May you please find comfort in the fact that because of people like yourself , I will try to make O&G's regret every taking advantage of my friends and family !
For people that feel that business is business and we should have informed ourselves first......... Stow it somewhere ! I wasn't talking to you !
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Jo Ann Carter- We are not 100% certain if they are vertically drilling under our property but we the there are several gas wells being utilized which surround our property. What process can I take to insure that I am being paid 1/6% royalties stated in the lease?
Thank you for your reply.
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