Chesapeake Stops my Royalty Payments

I didn't receive my April royalty payment from Chesapeake.  When I called to ask why, I was told that my unit had been audited from the first day of production (which was 10/1/10) by a "third party."  I was told I am not permitted to know the name of the third party nor am I allowed to see or know details of the audit because I do not have an operating interest in the wells.  Supposedly, CHK mailed a letter to me on the 29th of April; however, having already been told what I not permitted to know, I don't expect the letter to be very informative....other than they are now taking my royalties.  Given the fact they have cheated me from day one of production by charging exorbitant expenses and, even at one point tried to con me out of my bonus money, I am not surprised by this turn of events, but I am mad....really mad.   However, the CHK rep told me I shouldn't be upset because they are not taking "my" money...really, it is "their" money. 

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Permalink Reply by Elizabeth Smith on July 14, 2015 at 8:31
How much does he take of what you recieve back??
Permalink Reply by Henry on July 14, 2015 at 12:43

Elizabeth,

I assume you are referring to McDonald?  He takes 39% of what you receive back, plus up to another 10% if fees are incurred for expert witnesses and the like.  He is suing to make CHK pay attorney fees, and so if he is successful there, then you pay him nothing, and you receive 100% of what you are owed.  As part of this, he is suing to make CHK be honest going forward, and he will take nothing of your future royalties.

208ef0t5wi05pPermalink Reply by 208ef0t5wi05p on July 25, 2015 at 2:45

Henry,

    Take a look at McDonalds contract near the end. Do you see a "Power Of Attorney" statement?

If so you have been had.

That statement is used to allow your check to be delivered and cashed by your lawyer. Now who are you going to call if you are being cheated? Another Lawyer of course.

Permalink Reply by Elizabeth Smith on July 14, 2015 at 8:50
I tried to post but it isnt showing up. Can anybody tell me anything about Sections31-12N-13W or 25-12-14?
Permalink Reply by Skip Peel - Mineral Consultant on July 14, 2015 at 12:54

Can you be more specific,Elizabeth?  Are you asking about what's going on currently in that area?

208ef0t5wi05pPermalink Reply by 208ef0t5wi05p on July 20, 2015 at 5:03

Judy,

   In Ohio, we noticed the statements are in a new format, with any luck this has slowed down your check.

But being a US landowner, I can guarantee Chesapeake has short changed you on royalties from day 1. I have the evidence of what they are doing in Ohio. They have taken all of our Natural Gas Liquids without payment and have charged us for doing so.

The lawyers across the country are aware of Chesapeake's Fraud and are waiting for you to call so they can help you recover your loss and take 30 to 50% of what you would have been paid if CHK had any kind of Ethics in doing business.

I've had 2 offers to sue Chesapeake and have learned a lot of how Chesapeake does business in OH.

Chesapeake operates the same from TX to PA and has cheated the Dept Of Interior. Do an internet search and learn who you are dealing with, then act appropriately.

See Propublica.org   Abrahm Lustgarten has been following this fraud since 2005. Read his articles, also the Texas and PA lawsuits against CHK they are full of laws that have been broken and details of how Chesapeake operates.

You folks need to write letters to your state and Federal Governments. 

Start with the President, then follow my list for ideas on who to contact.

US Attorney General

FBI for your Corrupt Politicians, govenor & atty gnl are typically on the take from CHK

Interstate Commerce Commission or equivalent for shipment of stolen well products across state lines.

Your gov.

Your atty gnl

State Tax Commisioner

State Auditor

State Treasurer

State Legislators

Your Congressman

I've probably forgotten a few, but I'm still writing letters and will eventual notify EVERYONE,

even Bobby, Dougy Lawler ceo of Chesapeake who is orchestrating this Corrupt Activity across the country. I figure those who have money left over from when CHK was paying can introduce Bobby to what happens to people who break the law, similar to OJ Simpson, it doesn't take too many civil trials to drain your bank account when you injure US Citizens.

Ron Hale

Permalink Reply by Joe Aldridge on August 3, 2015 at 15:05

tc,

I agree. The Board or in this case their attorneys should have advised them long ago that they should have corrected the situation. I don't see a good outcome from this. Not only is there a State RICO case there is also a Federal one. That according to what I read has both criminal and civil penalties.

Permalink Reply by Judy McDaniel on August 3, 2015 at 16:02

Well, CHK is doing it to me again.  They didn't pay me on July 30th and when I called they said that QEP had discovered an "rounding error" in the unit decimal going (again) back to October 2010.  They are now just harassing me (do you think I can sue them for harassment?)  I mean who could believe that in two months time QEP would discover adjustments going back to 2010 and THEN discover a decimal rounding error going back to 2010?  For grins I am going to show you one page of their "revised" statement showing "adjustments"

Notice they first offset the original production volume and then onset with .007235 increase in production but in November 2011 they delete one well's production for the whole month...it's just gone and they reduce my royalty by $555.86.

I really think CHK is trying to prod me into signing up with McDonald...I mean these are such bogus reasons and I know as well as they know, underpayments cannot be collected beyond three years.  Well I am not going to sign up with McDonald mainly because it would take 4 years to even get a court date at this point because they have so many.

I am going to go to an attorney but only after I finishing building my Chesapeake "fraud" file and they are giving me plenty of documentation.

Unfortunately QEP has remained silent and I am somewhat disappointed in them even though I know they share a "confidentiality" agreement I would not have believe that QEP would have allowed CHK to malign them to the extent they have.

Permalink Reply by Judy McDaniel on August 8, 2015 at 8:30

Well, I have been conducting a survey with royalty owners in my unit and it seems none of them (and one is a lessor to QEP) has been notified and/or is affected by QEP "adjustments" going back to 2010.  I haven't received answers from everyone but so far this adjustment seem to have originated from Chesapeake....not QEP.  I have written the LA DNR asking about the fact the one month's production from one well has completely disappeared.  I am now up to two 4 year backdated adjustments and actually have received no answer from CHK other than a decimal rounding error for the latest reduction in royalty payments.  Chesapeake really is a scab on the butt of the oil & gas industry.

Permalink Reply by Skip Peel - Mineral Consultant on August 8, 2015 at 8:42

Judy, use the customer service website.  I suggest email as it provides a record for future needs.  Make sure you include all the pertinent facts of your well/unit/ownership interest.  If you can get connected with the account manager for your unit you will likely get an answer although it may take that staffer some time to find it if the adjustment is just effecting you.

http://www.chk.com/owners

Permalink Reply by Judy McDaniel on August 8, 2015 at 8:47

Skip, than you for your response.  Actually I have done that but it seems my email to their customer service website isn't recorded/accepted (I don't know what exactly) but it seems they do not have a record of receiving my email.  I will try again.

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