The 750 people who signed and thereby executed leases with JPD (ie Chesapeake) in the group from Greenwood will know if Chesapeake "honors all executed leases" (according their spokesman Kevin McCotter). At the Oct 4 signing event they were issued a 25 day bank draft. Based on when the draft was processed the first drafts need to be funded before 4 pm on Monday Nov 10th.

With all the bad press that Chesapeake gets we have invite Mr. McCotter to Mondays "revealing event". At exactly 4 pm we will know whether the first drafts will expire (and be returned with the lease) or be funded as promised.

We as a group will assembly in front of Community Bank 400 Travis starting at 3:45 PM. We have invited Mr. McCotter (or a representative) to join us at that time and give him the opportunity to be thanked by members of our group in appreciation for demonstrating to us that Chesapeake "honors all executed leases".

If you are in the neighborhood please join us!

It will look like this....

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When we use a broker,
The broker issues a draft that come directly to our bank, not the brokers.
We pay the draft at our bank, which then sends the funds to the lessors bank (may take an extra day or two depending on the bank involved, if its in another state, etc..)

I do not know if the brokers for CHK are paying the drafts or if its CHK themselves. It sounds like there may be a cloud on your title. If you are already covered by another lease being held by production by another well in another section, sit tight. They will form a unit and you will receive royalties from any well in your unit if you own your minerals. The royalty would be determined by the old lease.

If you are unhappy with the lease, you will have to break it. This means going to Court. You would probally argue that the lessee has not acted in the intrest of the mineral owners by not exploring for oil or gas under your land. You will of course need a good oil and gas Attorney.
I run into several cases of areas that are HBP by old leases. I was doing a favor for a friend of mine in town south and found he was HBP by a well two sections away. The lease was forty years old!
what do you mean by a cloud on my title?????????????????????????????????????????????????????
A title company would have checked the surface ownershipwhen you purchased your land, but many title co. do not routinly check mineral title. This would be in your title policy. I am of course making an assumption that you are talking about land you bought. You may have inheirited the land, etc..
I can not give a better answer without more information.

There could be an old lease or even a mineral deed in the past. Say for example that in 1920 farmer Bob owned 1000 acres in five diffrent sections. He signs a lease for all of his land. Many old leases including farmer Bobs do not have a horz. pugh clause. Then Oil Company XYZ drills a succesful well. Farmer Bob sells of pieces of land. Lets say your land is a part of Farmer Bobs old tract, but not in the unit for that old well. You would not have any royalties because you are not in the Unit. However, you are held by production (HBP) by that well because farmer bob did not have a horizontal pugh.

There could be a tax deed to the state in the 1930's....minerals go to the state with the land, but when the tax deed is redeemed the minerals do not come back to the surface owner. Prescription does not run against the sovereign, therefore the state still owns the minerals.

Start by asking the landman why you where not paid. They should be able to give you an explanation if there is a problem with the title or if they just pulled out.
I received my signed Chase form "Non Disturbance and Attornment agreement." from JPD Energy
Chase will not accept the generic form. So JPD /Pedro & Chase have created a specific form just for Chase

I then went to Monroe and paid $300 to get Chase to fill out their section of the Form
$300 for 5 minutes of work and 2 Notarized signatures _ No wonder the Banks need a Federal Bailout they are not making enough $ of the little guy!!

I then dropped my Completed forms off with Pedro @ JPD Friday afternoon.
At that time Pedro told me my Draft will expire 11/17/08 but I will instead receive a check in the mail next week

So we shall wait and see
Again it demonstrates JPD's willingness to assist our Greenwood Group.
As I see it, the issue is with their client, Chesapeake Energy.
You were one of the fortunate ones to be able to run this marathon "paper chase" in the alloted time.
For some it has become even more entangled. As we all know WaMu customers are now JPMorgan Chase customers. However, not all WaMu departments have made the transition. WaMu will not accept the JPD/Chase form!!
Therefore if this non disturbance form is not returned by a deadline then the executed lease will be rendered as "unmarketable". If Chesapeake requires this form then Chesapeake should allow the time required by the lender to work through their legal departments and process it. No deadline should be imposed!!! The lessor is simply the "messenger" for an agreement between JPD/Chesapeake and the lender.

One frustrated group member said it this way...If it is a "non-disturbance" form why am I so disturbed??
I have seen this in some Barnett Shale lease agreements. Wouldn't having this clause in a lease prevent all of the above problems and expense?

SUBORDINATION AGREEMENT FEES. Notwithstanding anything contained herein to the contrary, neither Lessee nor Lessee’s assigns shall ever require a subordination, partial release of lien, release of lien, consent or other documentation from any lender or tenant of Lessor that has a lien on Said Land as a condition to Lessor receiving the agreed signing bonus or any subsequent royalty payment. However, Lessor will cooperate with any reasonable effort of Lessee to obtain same from Lessor’s lender on behalf of Lessor. Any expense occurred to obtain a subordination agreement will be paid by the Lessee.
"As I see it, the issue is with their client, Chesapeake Energy."

Why did Chase and JDP create their own form? If Chesapeake was the one to demand such instrument, then Chesapeake and Chase would more likely have been the ones to create the form.

From the Chesapeake leases that I have reviewed, paragraph 16 resolves the issue of potential property foreclosures. Being as such, I see the demand coming from someone other than Chesapeake.
The lease cannot protect the oil and gas company fromlosing its rights in foreclosure. The fact that the property is encumbered with a mortgage reduces the rights of the property owner. just as the property owner can not sell the land without resolving the mortgage, the transfer or leaseing of mineral rights would also be subject to the mortgage, unless the bank agrees to subordinate the mortgage to the lease.
Dropped my Non Disturbance form off to Pedro @ JPD Energy 11/14/08
Draft expired 11/17/08---- "I was told it would"
Pedro @ JPD Energy called 11/19/08 and said they had my check ready
I went downtown got my Check and Deposted it into Capital One same day 11/19/08.
Check cleared this morning 11/21/08

Going to try to spend it all by this afternoon
Be sure to save the IRS their share.


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