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Permalink Reply by HBP on July 8, 2012 at 13:36

make demand under the mineral code.  CHK has a duty to you under your lease with them.  (In most cases) Their issues getting paid by Petrohawk are ultimately their issues, but they still have to administer your royalty (In most cases).

There are some other threads on the site that help address the process, but feel free to send me a message if you need assistance or specific details.

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Permalink Reply by nrp61 on July 8, 2012 at 14:09

Thanks HBP.  I'll call CHK and mention the mineral code.  But I would love to learn more about the process.  It's the "In most cases" that are worrying me.  Would you point me in the right direction please?

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Permalink Reply by HBP on July 8, 2012 at 15:42

if you've already tried calls and emails.  you need to send a letter.  Certified/ Return Receipt Requested for it to qualify under the mineral code. 

I would always suggest trying to reach them and inform them of any underpayment by phone or email first.  But if that does not prove helpful, then demand by letter is best to create the documentation.

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Permalink Reply by w.r. frank on July 8, 2012 at 19:02

CHK never pays on time. I have a well operated by HK. PXP pays promptly on its 20% interest with CHK within 45 days. CHK is always 90+ days and says its because HK doesn't pay them. BS! HK pays its royalty owner on the same well within 60 days! CHK is a broke, lousy company that does not honor it's written lease terms. The sooner CHK is out of the Haynesville Shale, the better all royalty owners will be.

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Permalink Reply by Krkyoldhag on July 9, 2012 at 0:24

Are royalty holders considered creditors?  

 

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Permalink Reply by Andrew on July 9, 2012 at 17:11

Royalty owners are obligees in Louisiana, or a person to whom something is owed, so they are a creditor in a sense, but they wouldn't be considered in the same league as a bank or lienholder in the case of a bankruptcy if that's what you mean.

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Permalink Reply by nrp61 on July 9, 2012 at 3:41

CHK also gave PXP 20% of this well.  I just received my division order from PXP.  I called and ask CHK why they were only responsible for 80% of the royalties and they gave me PXP's phone#.  PXP told me that Petrohawk is in an uproar because of the re-org.  They were unable to get the names of the current land owners and had to go to CHK's original division orders from 2006.

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Permalink Reply by Hopeful About Natural Gas on July 8, 2012 at 19:39

Have you gotten a division order letter yet? 

 

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Permalink Reply by nrp61 on July 9, 2012 at 3:30

Yes

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Permalink Reply by smith1 on July 9, 2012 at 1:47

Where is your well located?

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Permalink Reply by nrp61 on July 9, 2012 at 3:32

Sec13-16N-15W Caddo Parish

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Permalink Reply by Hopeful About Natural Gas on July 9, 2012 at 9:13

if it helps, my own was slowed down an extra couple of months because I was leased to Petrohawk but the well was drilled and operated by CHK (the opposite of your situation)

Mine eventually got all straightened out - but I think it took a month or so longer than if just one company were doing the whole thing.  Plus, my hunch is that the companies are so cash needy that they want to hold onto every dollar until they have to pay it out.

Hope this helps. I know how nerve-wracking the process can be with 2 companies.  However, other than getting a gouged on the expenses, everything has flowed OK. If you got a division order then your $$$ should be on its way.

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