Have any of you ever compared your volume of gas that CHK is paying in Royality checks to the amount of gas that is being reported to the State on Sonris?
Yes. Here is one of the discussions on the topic from the GHS archives.
It will be brought up in the other discussion I am sure. But, Chesapeake reports on a different psi (pressure per square inch) than Soris and all other o & g companies (that I know of). This is not illegal but it does help add some smoke & mirrors to their reporting. CHK uses 14.65 psi and Sonris uses 15.025. Here is the formula to convert CHK to compare to Sonris. An example is included. Hope this helps.
P(1)*Volume(1) = P(2)*Volume(2)
I got a simple explanation from a member (W.R. Frank) a while ago: "... the difference in volume is explained as follows: Volumes reported to LDNR and published on SONRIS are at the LDNR required pressure rate of 15.025 psi. Volumes reported by CHK on your royalty statement are at the Oklahoma pressure rate of 14.65 psi. To convert SONRIS volume to CHK reported volume, divide the SONRIS volume by .975. Small differences are decimal places differences."
I had been wondering why CHKs check stubs were always more than SONRIS, so I went back and checked a few using our friends formula
Here is a quick summary of what I found: 5 months from sep 12 to jan 13, the total volume reported on SONRIS was 379202. Applying the correction yields 388925. The total volume reported on our check stubs was 388855. Now, the difference in the pure correction was 70mcf and results in only around $210 short, and satisfied my curiosity for that part.
Now, hear this. Beginning in February, the reported volume declined by the expected amount, but the volume reported on our checks dropped around 28 percent. Come to find out, CHK sold 30% of their interest effective February a year ago to Enduro LLC. Of course its not CHKs policy to tell its royalty owners crap and certainly Enduro was not going to reveal that it was holding on to our money for a year interest free and also without telling us. I don't know how far this deal went, but seems to wells in DeSoto Parish that were drilled/owned by Camterra. You might investigate to find out if you are also in this boat. Enduro explained it away by saying that there were issues with 'title'.
The reference well is 239603 and others around the area are 238848, 239821, and 237524 to the best of my knowledge.
You might also check this thread: http://www.gohaynesvilleshale.com/forum/topics/chesapeake-discrepan...
One small additional note of interest: I was pleased and shocked with I received my check for 13 months. Enduro paid near or above the Henry Hub spot average and deducted around 10% for CGT and some Louisiana ORF. This does not include tax because tax should be tax. Since CHK lists no deductions the price compared to Enduro's and Henry Hub smooths out and results in something north of 22% deduction before tax. Enduro's price for 2/14 was $5.51. Now the bad news. Enduro does not adjust its volume for atmosphere. That battle is yet to be fought.
Bill, I have an ORRI in well # 237524, Hall 9 #1H. This is the result of assigning a lease to Exco Resources, who is a non-operator of this well. My Assignment calls for a cost free overriding royalty. My Jan., 2014 check stub indicated a volumn of 9,617 mcf @ $4.06. Sonris indicated that the production for Jan, 2014 was 12,402 mcf. In your opinion, should I be receiving a check from Enduro for their 30% interest in the well, as there was almost 3 million cubic ft of gas that I received no payment for in January???
Thanks in advance for your help.
Call this lady:
Division Order Analyst
777 Main Street, STE 800
Fort Worth, TX 76102
She can tell you if/when you'll be receiving your division order. I asked her to explain my order and she did, although incorrect. The division will stay exactly the same for Enduro proceeds as is CHK proceeds.
Here's what CHK should have shown: With a SONRIS 12402MCF, Adjusted for atmosphere would be 12720. 70% of that would be around 8904mcf which should be the total for January shown on the check report. You said the check report showed 9617, so I am at a loss to explain why. You said you personally were not paid for 3 million cu. ft. Do you really own 30% of the Hall well royalty? Maybe I know you. If you want to shoot me an email with your name, I'd be interested.
Let me know if anything else.
No I don't. What I meant to say was my pro-rata share of the 3 million cu ft.
I'd email you, Bill, but I'm not sure how to do it privately through the web site. Think I might be technologically constrained???