I just received my first rolalty payment from Chesapeake for a well in my section-14 17 15

small lot in west Shreveport.

months of

3-11, 4-11, 5-11, 6-11, 7-11, 8-11

two deductions fuel and gathering?

Gross of $498.27

                  -5.85 fuel

                -52.62 gathering

11.735%    Is this normal, seems a little high

I know Henry was getting info together about  such charges

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Chesapeake takes between 10 and 13% from my funds each month for fuel and gathering charges.  I agree it is a little high when every other operator in the play charges less.  Sorry to be the bearer of bad news but on the other hand congratulations on getting a well.  You should send Henry your payment info every month for his spreadsheet.

Thanks Ronny, Henry,

 I am thankful for my little check from Chesapeak, it will pay the insurance on my vehile for 6 months, I just find it amazing that a multi-million corporation will pay you $50.00 a month and find a way to take 10% to 12% back. It is very little for me, but look at all the little owners and big players and it is a lot of money. I say again, I am thankful for what I got and will just go thanking the Lord  for all His blessings. Allso the much help and hours of enjoyment from this site.


And 10% back on several hundred thousand acres adds up to a lot of money.


Be on the lookout for strange unsolicited letters from purported oil and gas companies offering to buy your mineral rights for pennies on the dollar.  I suspect that these are folks in league with Chesapeake who is looking to buy up all their wells so that they don't have to pay royalties to anybody.  Don't, under any circumstances, sell your mineral rights to anybody. 

Right now, natural gas is cheap, but in the future it will probably increase dramatically in price due to increased demand because of increased use for fuel for passenger cars, mass transit vehicles, and much more, and then our checks will increase dramatically.

Up date on my charges from Chesapeake

10/28/11     Ck $498.27  Fees  $52.62    10.56%

11/30/12     CK $151.38  Fees   $19.03    12.59%

7/27/12        Ck  $110.29   Fees   $20.54    18.60%

2/27/13        Ck  $122.26    Fees   $21.56    17.65%

For fuel and gathering??


For Nov. 2012 Production revenues...  CHK Operating Inc., et al, took out 67.9% in deductions!

I am unleased mineral owner under a CHK HS Unit.  I can only imagine what CHK Royalty Owners are being "charged" per mo.

IMO... Outrageous deducts are the only way CHK Energy, et al, can show some "profits." 

Count up all the "Plays" CHK Energy takes production from, count ALL their Royalty Owners, and figure 50 to 60+ percent deductions off checks... 

Chesapeake would be ChesaSUNK if not for "netting out" all their mineral owners...


DrWAVeSport Cd1 3/3/2013


Thanks DrWAVeSportCd1,

I always enjoy reading your input on CHK Energy.



You're welcome.

Have a Great GHS Tuesday.

(...Highway robbery in my opine...)



Dr. Wavesport,

It doesn't cost 68% to operate a well. As an unleased landowner, you can call, and pay for, a well cost hearing, in which case the LA Commissioner of Conservation will establish what the legitimate charges are. Assuming your financial stake in the matter is substantial, it is recommended that you engage an attorney at the outset. It sounds like there may be a class action implication here for underpayment of production proceeds to unleased landowners. Certain attorneys specialize in these matters. Good luck.


Agree... At this time, We have initiated "action," with no guarantees but possibly huge implications larger than LA Commissioner of Conservation, who has no "legal" authority per Our inquiries... 

Thank you for the info.  The "powers that be" are at work...  Mr. Chesapeake has been forced out...  First action!  


Well cost hearing findings by the Office of Conservation are final in a court of law. You have to provide the ball. The court will swing the bat.


We have been told that the LA Office of Conservation is not a legal entity for listening to "deduction" complaints...  They have no legal arm to make O&G companies stop actions as we are discussing here.  And the State and Federal Courts aren't "swinging the bat" in favor of Our problems either. 

However, a public hearing at the LOC could be a great public forum for O&G Companies to "voluntarily" make changes...

If Our "actions" become moot, going to Baton Rouge will be next... 


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