Replies to This Discussion

Permalink Reply by yahoo777 on November 4, 2008 at 16:26

I RECEIVED THE SAME LETER. THE REASON THEY WANT THE SSN IS SO THEY CAN PAY US $25.00 PER ACRE. I GUESS WE'LL HAVE TO PAY TAXES ON IT. FROM WHAT I UNDERSTAND THIS IS NORMAL. CAJUN EXPLORATION DOES THE WORK FOR CHESAPEAKE.

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Permalink Reply by The_Baron on November 6, 2008 at 4:37

You will get a 1099 from them. The govenment requires all payments to individuals, private contractors, and LLCs to be reported. Be sure to save enough to cover your tax burden.

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Permalink Reply by The_Baron on November 6, 2008 at 4:38

I'm not sure if damages (timber, crop, etc.) are counted as income though, check with your accountant.

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Permalink Reply by twomule on November 4, 2008 at 16:29

Hi Sheila
I just recieved the same letter today, I won't be putting my ssn on the letter. I don't see a reason why eithey would need it. They (CHK) already have all of that information already.

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Permalink Reply by DaddyT on November 4, 2008 at 16:51

What is your Sec.,T,R? They contacted us last April, but we never heard anything else. We did not get a letter. We got a visit from one of their employees. We did not sign anything at that point. They were to contact us before they went on our property.

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Permalink Reply by JHP on November 5, 2008 at 4:50

I was visited by them and I signed their letter about 4 months ago. I never saw the big 25 dollar payoff though.

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Permalink Reply by CaddoKid on November 5, 2008 at 11:24

The $25/acre fee is paid to the l/o after the seismic work is complete. I suppose they'll concentrate first on seismic and drilling in units with early-signed leases to be able to hold them by activity or production. If you signed an O&G lease recently, it may be a year or more before activity resumes, given the economic meltdown.

We had our attorney add text to the permit to strengthen the otherwise "boilerplate" language for damages, which Cajun agreed to. (Thank you, KB)

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Permalink Reply by nisie, not a happy camper landowner on November 5, 2008 at 6:07

I've been contacted by them. Our section is in limbo on a lease now though. Other large landowner is not agreeing to seismic after lease with CHK was taken off the table.

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Permalink Reply by Jimmie Green on November 5, 2008 at 7:11

I was advised not to put ssn: on the returned form.

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Permalink Reply by JHP on November 5, 2008 at 12:00

Thanks CaddoKid. I was not sure how that worked. The interesting thing is that I received a letter saying that Chesapeake was asking to obtain a permit to force pool and unitize into one unit in my section but yet no testing has been done.

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Permalink Reply by Duncan McGehee on November 5, 2008 at 12:06

A W-9 is required for any amount over $600.00 You do no need to put your SSN on any form. The W-9 can be downloaded from the IRS. This is where the SSN is written. If the amount is below $600.00 you do not need to give them your SSN.

The Seismic permit is written as a damage release. Everyone should amend their form to add specific language to protect your property from damages. Ruts and tree cutting are the major impacts. Make sure any Seismic Permit one signs contains provisions for restoring the property to as near it's condition as before the crew performed the work.

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Permalink Reply by Sheila C on November 5, 2008 at 17:06

Duncan:

Thanks for the info. Especially regarding the extra wording. We have lots of beautiful large trees around our property and I definitely don't want any of them damaged. Do you have any specific legal wording that can be placed as an amendment to their permission form?

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