I have sent a certified letter to Chesapeake regarding my interest as I am UMI. Should this letter be sent to the state of anyone else?
If you have enough mineral acres and it is in a good unit of production I would have a good oil & gas attorney with Litigation experience follow up
We were offered a lease but my husband didn't want to lease. He was advised with such a small interest the pay out is better not to lease. 16/16, 1/2 of 1% of 1 section is our interest. From what we have researched the well is nearing paying for itself if it hasn't already. We have recently been getting offers to sell our mineral rights. That is what prompted us to check on the status of the well. As far as the attorney goes, we hope there's no need for one but anticipate there may be.
Here's my two-cents. It is entirely possible that CHK will not offer you a lease. If the well has not reached payout, or is not going to reach payout, there is little incentive for them to offer to lease you. Others on this site, who are in a situation similar to yours, have found that CHK will not offer a lease in these circumstances. They don't have to lease you, and there is nothing you can do about it.
The law that governs how to deal the unleased mineral owner in Louisiana is quite generous in my opinion. However, it was written under the assumption that companies would be drilling wells that actually make money. With today's low gas prices, many wells are never going to be profitable. Thus, many UMOs will never see payout. So there is no incentive for CHK to offer you a lease, much less offer you a lease that pays royalties back to first production.
No amount of lawyering can make them lease you -- the law does not obligate them to do so. I suspect if the well has actually reached payout, they will pay you according to the law. Or they may offer you a lease for future production.
We have a member on this site who is unleased, and whose well has reached payout, and he does get paid by CHK. So they do pay, when the well reaches payout.
I realize this is not very satisfying. But this is my two cents of opinion.
The only communication with CHK as to date was the initial lease offer. There is suppose to be drilling in Section 29 which we are in also. There is no well in Section 29 because a substantial part of that acreage is currently the subject of litigation disputing ownership of both the minerals and the leases. The Louisiana Supreme Court is hearing oral arguments in this case on March 18, and final resolution might be years away still. That section likely won't get drilled until that litigation is concluded.
Thank you for your input. Sounds like I am on the same page as you. If all goes like it should we will get paid.
Thank you for your 2 cents. I'm learning more everyday. This well has been in production since 10-16-09. It is actively producing. We hope to see a payout. I realize it was risky not leasing and will not have the opportunity to do so on this well. And will regret it if we never see a payout. It's been a learning experience. You did actually tell me something that is satisfying and promising. We have a member on this site who is unleased and whose well has reached payout and does get paid by CHK. I'm going with that line of thinking! Thanks again.