Non Payment Of Royalties From Chesapeake In Hayensville Play

We have interest in S30 15w 11n I think thats the numbers and we have not had a payment since September 2013. Chesapeake will not talk to us or tell us why they haven't payed us and it's so stressful and infuriating!!! Is anyone else having this problem? Also what can I do? It seems that Chesapeake can do what ever they want with impunity!!! Chesapeakk is the worst company ever!! the've held back payment claiming that they have "Over Paid Us" which i find hard to believe. They've done this 3 times!! How a large compant like their's can be so bad at accounting is hard to believe. I have a feeling we've be ripped off.

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Send a certified letter of request for an explaination.

Letter sent, still no word.

Welcome, may I ask how large is your interest? If it is under a certain amount each month companies can hold checks.

I think they have to pay if it is over $100 in one month or a total of $100 (is that right?) If you have a small interest that may be the issue. I am not certain of the $100 figure, but there is a limit they can hold on to.

Get your paperwork out and see which section/well number you have. Someone here can probably look up the production report and that will tell how the well is doing - your actual payment would be based on your working interest.

With CHK, the amount is $100.  You are right, HANG.  They will hold the checks until they owe you $100.  If the total for the year is less than $100, they will send one check for that entire year's royalties in December.

Our interest nets us $1200+ per month. The first couple of months it was $33,000 per month ten down to $8,000 per now $1200 Per. Or well is in S30 15N 11W i believe. Also this is thethird time they have done this in under 3 years.

Have you talked to others in your unit?  

Very informative article on "charges" and "self-dealing" in the NYTimes today concerning CHK and the City of Ft. Worth:

http://www.nytimes.com/2013/12/22/us/fort-worth-sues-driller-citing...

Don't recall if it has been mentioned already. A copy is also available here:

http://www.texastribune.org/2013/12/22/north-texans-challenge-drill...

Yes, this type of arrogance makes its ways known to various trade organizations and municipal associations. When they go from nickel and dime pettifogging of landowners to arrogant disregard of municipalities, it leads to the 12/11/13 debacle in Dallas, Why deal with thieves? Great PR for the industry. 

Someone here would probably be glad to look at numbers for your unit - get your paperwork and post your exact section & township #. In two posts you have said "I think" for it's number. Your paperwork (or checks) will have it and folks can look up production records.

While I know nothing about your well, big starting payments are/were common several years ago but the price of gas was higher and these wells decline quickly. Lots of people are looking at the life of a HS well.

THis can be confusing (it has been for me, I am a minerals owner, like you) But, let us know your exact well # or township and range and people could look up production numbers from the state's database.

The Supreme Court of Texas seems to have the matter of royalty payments downstream of the wellhead reasoned out:

http://www.leagle.com/decision/19961057939SW2d118_11057

If they overpaid you, they should be able to explain when, why, and by how much. They should give you all of this information along with a complete history of production/royalty for your interest upon request. Don't waste your time with phone calls, email, or snail mail. Go ahead and contact them by certified mail so you know the date and time they receive your letter.

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