I have several leases on some property in Johnson County, Tx (Barnett shale) with Chesapeake Energy. Persuant to a revenue inquiry I made earlier this year to Chesapeake, they explained how the gross royalties (& subsequently my net) were figured. Chesapeake stated, "that post production costs were included in the gross royalties paid. Post production costs(3rd party deductions) were borne by their purchaser and were already figured into the price received by Chesapeake.

Recently I received a letter notify me & other royalty owners that"A recent indepth audit revealed that they were not deducting allowable post production cost and   commencing with our July checks "post production costs would be deducted from our royalties."

My inquiries to Chesapeake resulted in a written statement to the effect that "these deductions just sound the same as the others, but are NOT the same." "THESE deductions for post production costs are for post production costs closer to the wellhead."

I am NOT AT ALL convinced(by their explanations) that these "new" deductions & the "old" previously inclusive deductions are not one in the same & constitute double deduction.

Can you give me any insight or what to see/research about this?