My investors finally got put in as unleased mineral owners on 5 wells in one section with Chesapeake. They get their first check this week ( after owning the property 20 months). First check has 10 spots and each say January 2019 Cutback and an amt. They get the total of the amount which is certainly no where near what they are due. A day later they get a copy of well EXPENSES but not well production but we can look that up on Sonris. The only thing the report says is PERIOD 1. It doesn't have ANY dates. I have been in touch with their legal dept. and they don't know what it means. Said they have to wait until revenue tells them. Has anyone experienced this. Does anyone know how Chesapeake defines Periods 1, 2 etc without any chronological data.
You are being snowed with BS. Pure run-around. You aren't their first rodeo, but based on what you've said it's yours. Get a qualified attorney.
No offense intended with my tone, but if you don't get it in gear, they will skin you alive.
Experienced mineral investors should know how to deal with this without asking questions on a website.
I thought this website was to help people and I needed help. I can assure you I won't ask for help again
This website is not a substitute for an O&G attorney. Some questions are sufficiently simple and straight forward for industry members or even knowledgeable mineral owners to answer. Your question does not fall into that category. If mineral investors do not have competent legal counsel, they are playing with fire. Especially in Louisiana.
This website used to be about helping the uninformed land or mineral owner and was full of professionals who were willing to help educate. Sadly most of those professionals do not post or respond anymore. For me personally, the compilation of recent posts that have zero to do with the Haynesville cause me to rarely visit. If I wanted to hear about a liberal agenda, I would just turn on CNN.
I can't speak to the direct question of this thread, and do not intend to hijack it. That said, its my opinion that the "liberal agenda" posts you are referring to are important to understanding the future of Natural Gas, regardless of the political winds in the US. The continued growing importance of LNG and natural gas export to build demand for natural gas brings the world wide political landscape into play. As such the climate/energy source decisions made in other countries (and here) ultimately affect the pricing and ultimate development that we can expect to see in the Haynesville and most other shale plays.
Having grown up poor in Louisiana, with parents and grandparents having been landowning farmers, I never held someone's politics again 'em. What mattered to me was if they told me the truth and didn't lie to my face. That's what was most important, not their darn politics. But as the years have come and gone and now that I'm not as spry as I once was back in the '50s, there seems to be fewer and fewer people of honor, integrity, and character. Those are the traits that mean the most to a guy like me, like I suspect they do to most hardworking/honest landowners who live out in the country in our fine state.
So that's why I always like reading posts by a pro like Jay. His honesty seems to be undeniable. And Skip and dbob are also known to be quite truthful with their intel. Of course, I know when it comes to making money and bringing home the bacon, some folks have to manipulate things a bit to line their pockets. But that's just business. It's not politics. It's nothing personal.
So coming from a family known for its military service, with a nephew of mine presently risking his life everyday to serve and protect, I know when guys like him put their lives on the line to protect our country, whether liberal or conservative or libertarian, Uncle Sam and those in foxholes don't care one iota what brand of politics someone is affiliated with. A good American is a good American. Dying for your country makes you a patriot, not a member of whatever political party.
well, we are clearly in the 'Hijacked" territory on this post, and we are about to make this more like a typical blog than the place we have all been following for many years now.
If there is a post that doesn't interest me, I just pass it by. It's just like one of my friends from years ago who can't seen to resist posting something political every single day on his facebook page. He and I are on opposite sides of politics, so I just pass them by and don't get into an argument with him.
I'm now retired, and my declining "mail box money" is more important to me than before, so I'm interested in reading about all topics that may affect the future of natural gas. I don't necessarily look to read about them here, but don't mind that either. Many of the re-posts are information I would not have otherwise seen.
And if I don't want to read them, then I won't. Maybe something will rile me up enough to object or debate some days, but not likely. Seems to me that this blog is slowing down so much that interesting posts should be welcome. In any regard, we should all try and keep our posts civil.
Well casingpoint I still have my skin and it was Chesapeake who ended up helping me. I came to this site to find out if anyone had a concept of Chesapeake's "period" in defining payment. Obviously no one knew because no one ventured to even guess but referred me to an O&G Attorney. Well guess what, the O&G attorney I know didn't know what Chesapeake's time periods for payment were. Each company defines its time periods for back payments and I found out from Chesapeake what their time periods were and no they didn't skin me alive. They DID pay my investors the back pay due and it was very close to the calculations that I and a friend who is a landman had calculated from the expense sheets they provided against the productions we were able to pull from Sonris. I have to say Chesapeake was more helpful than this forum was.
This forum is not meant to take the place of experienced landmen or O&G attorneys. And specific situations as complicated as yours ( or your "investors") should not be something that we attempt to cover. GHS should never be used in such a manner. The Internet has its limitations.
Good luck. I became an unreleased owner when Chesapeake "found" an acre in adjacent section and included it with their section. It took over two years for them to tell me (I got a request for a TIN number addressed to the previous owner). I contacted them several times and they denied that they had and production under my name. Only after I threatened to send a demand letter did they confirm that the acre was in their unit.
I have a copy of the survey so I know the interest is correct but there is no way back into their numbers. They show both a decimal interest and an owners interest (they say it is because there are several companies that participate in the well). I have a PE and a background in finance but I can not back into their production numbers. I have used SONRIS and even used the severance tax to back into production. They are always about 10% low.
I have placed numerous calls to them but can never get an actual person that can answer my questions. No one ever calls back. It is only one acre and legal help costs more than it is worth.
To answer your question. I currently get a monthly production report which looks like most other companies reports (I get it online) I also get a "netting report" which takes out an additional amount for other expenses (about 10%) in the mail. When they first "found" me I got several reports and checks that covered numerous months.
One general question -- I live in Texas the well is in Louisiana. Can I file a claim in Texas small claims court against them?
Full name I can give you direct numbers to talk to people. Message me