Petrohawk won't pay royalties to CHK

Even though my lease is with CHK, Petrohawk drilled the well.  The well went into production in Sept of 2011. Petrohawk has not paid CHK royalties since Dec of 2011.  Therefore, as CHK informed me, if we don't get paid, you don't get paid.  What can I do?

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Permalink Reply by Milton Bernos III on July 12, 2012 at 5:23

The operator is ultimately responsible for the royalty payments. They have contracts in place to sell all of the production and all of the money goes to them. The operator then disperses the money to the participants and royalty owners. The other companies who participate have no say in who or where the production is sold to. They are just along for the ride with no say in the operator's decisions. Some contracts on the sale of production can vary quite a bit. You can see why they are at each others throat.

Permalink Reply by G.L. Jenkins on July 12, 2012 at 5:29

Wouldn't you just go to court, sue them, get a Judgement and then shut the well down ?

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