Oil & Gas Pro

CHK to appeal fine for underpayment of royalties

"

Companies with federal oil and gas leases pay royalties on the minerals they recover. The Department of the Interior's Office of Natural Resources Revenue says that during an audit that started in late 2009, Chesapeake was ordered to report additional volumes on royalty reports for a lease in Oklahoma.

Agency officials say that after the issue was eventually corrected, the inaccurate reporting resumed, despite repeated warnings."

Not usually my cup of tea, as I don't have a dog in this fight but I thought it might be of interest.   If anyone is really interested, i suspect you can either find or FOIA the information related to his one.  

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landownerPermalink Reply by JHH on April 4, 2013 at 0:27

When i saw the first sports arena named for... and trucks given away to local communities in the name of the company that will not be mentioned... i knew this wouldn't end well.  i no longer have a dog in the fight... at least i don't think i do.  but i still own less than 200 shares of the company that will not be mentioned... just so i can have a small say in how they do business.

And to this day... most oil/gas companies complain wildly when royalty owners seek extreme protections when negotiating leases.  It's nice to trust... but get it on paper and signed by all parties... even the attachments and amendments!


landownerPermalink Reply by Max on April 4, 2013 at 2:55

Maybe Chesapeake, like many other O&G companies, are using the DWRRA Act of 1995 and it's amendments to avoid paying royalties to the Fed's. 


landownerPermalink Reply by mickiebyrd on April 9, 2013 at 12:37

Chesapeake got into financial trouble and told its staff to screw everyone possible until they sue and then appeal it.  I would bet the number of lawsuits is in the hundreds one including me.

 

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