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Permalink Reply by Skip Peel - Mineral Consultant on June 21, 2012 at 12:44

Sam, can you be more specific?  Are you concerned about CHK choking back or shutting in production in the Johnson Branch Field?

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Permalink Reply by Sam on July 12, 2012 at 9:19

Yes, either one....it's been producing since 2008 & slowly lessened as expected with low prices.  I don't trust Chk and their tactics.  Have had several things we had to call them on like: giving us less percentage (they had some lame excuse about satisfying another entity), and charging transp chgs when we were not to bear that burden (they reimbursed us best we can tell!), and who knows what other hidden costs, but production has decreased.  Wonder if it would be beneficial for them to shut in prod completely. Thanks.

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Permalink Reply by Skip Peel - Mineral Consultant on July 12, 2012 at 16:21

Sam, CHK could very well shut in or restrict some production in the Johnson Branch Field.  I don't have any specific knowledge of that.  I do know that many of CHK's earliest HA wells were in the Johnson Branch Field and therefore having been flowing for three or more years.  With the natural decline rate for those wells the current flow rates would be about 12 - 15% of the initial production.  That and low current prices would make for a much smaller royalty check.

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