Oil & Gas Pro

Royalty Owners Lawsuit - Chesapeake

On page 2B of Dallas Morning News, Friday, October 1, 2010.  Tarrant County woman files class-action lawsuit against subsidiaries of Chesapeake saying they shortchanged royalty owners in the Barnett Shale.  Lawsuit filed in U.S. District Court in Oklahoma City.

 

Lawsuit says Chesapeake should base royalties on the full market value of nat gas instead of 'fictitious' price it gets from a Chesapeake entity.

 

This is one to case to look at for you HS royalty owners who feel shortchanged!

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Permalink Reply by Linda Whatley on October 1, 2010 at 3:28
Not only are they short changing on the price of gas, but they are also mis-calculating lessors interest. Be sure to check your Division Order before signing!

landownerPermalink Reply by Spring Branch,mineral owner on October 1, 2010 at 3:58
Linda, give us some specific facts to back up your accusation. I thought they were mis-calculating my interest in a section until I discovered there was 641.7 acres in the section rather than 640.
Permalink Reply by Linda Whatley on October 1, 2010 at 4:10
Yes, I know some sections have more or less than 640 acres. My division order shows 633.59 as the unit size. However, they took the difference out of my 200 acres instead of pro-rating it between me and the other mineral owner (there are only two owners in the section). According to my lease, I own 31.25% of the minerals in the entire section, but they show me as only having 30.56%. My ownership percentage should remain the same no matter what base they use.
Permalink Reply by Linda Whatley on October 1, 2010 at 4:16
Based upon a 640 acre section I have 200 acres. But since the unit size is 633.59 instead of 640, I would have 197.996 acres. My division order shows 193.63.

Oil & Gas ProPermalink Reply by Katie McCullin on October 1, 2010 at 4:20
Hey Linda -

Have you tried our Contact Center at 1-877-CHK-1GAS? If you don't feel that would be effective, I'm happy to have a representative contact you directly in order to review your division orders.

Thanks!
Katie
Permalink Reply by Linda Whatley on October 1, 2010 at 4:24
Katie,

Yes, I have left several messages with no response. I also sent an email and have not received a response from that either. I would like to get this matter resolved as quickly as possible, so any help you can give will be appreciated.

Thanks,
Linda

Oil & Gas ProPermalink Reply by The_Baron on October 1, 2010 at 4:23
Linda, you need to look at the offical plat. The acreage can not be pro-rated. There are few perfect 640 acre sections, the originalk survey will show what each section is.

I will be happy to help, send me a private message with your location and i will pull your plat, if you are in LA. Or, you can just post here if you want.

Oil & Gas ProPermalink Reply by The_Baron on October 1, 2010 at 4:24
Also, what is the description of your property.
Permalink Reply by Linda Whatley on October 1, 2010 at 4:38
Baron,

Thanks for your offer to help. I don't know if I'm figuring things right or not, but with all the warnings I've seen about mis-calculations, I want to make sure the percentages are correct.

My property description is as follows:

THe West 1/2 of the West 1/2 and the West 1/2 of the East 1/2 of the NW Quarter of Section 6 T12North R11West, DeSoto Parish, Louisiana.

The Division Order shows the unit acres as 633.59. It shows me with 193.63 acres and a unit interest of .07640193. My lease is for 25% royalties.

I may be wrong in my calculations, but I figure I have 197.9968 acres in the section, and a .078126 BPO Unit Interest.

Thanks for your help.

Linda

Oil & Gas ProPermalink Reply by The_Baron on October 1, 2010 at 5:22
state land office has a new documant viewer that is a little buggy, I am not able to down load the plat. However, here is a screenshot of your section


Notice your section is not broken down by 1/4's.

Officially is it listed on the plats section list as 630.80 acres. The section is not square, it is 80 chains on the north, 80 on the west, 78.3 on the east, and 79.4 on the south.

a chain is = 66 feet

Because the section is not square, and the 1/4's are not listed on the plat (One of four sections in the Township that is not) you need to do a little more geometry to figure the size of your tract.

I am a little disturbed that CHK has the incorrect acreage on the Division order.

I would ask CHK if they have conducted a survey. Also, you may want to consider a survey of your own property.
Permalink Reply by Linda Whatley on October 1, 2010 at 5:50
Barron,

I have a very old map (with no date) that shows the section as divided into quarters. It was prepared by Globe Map Co in Shreveport. I understand the company is no longer in business. Anyway, I think the map covers all of the Bull Bayou field.

Thanks again for your help.

Linda

Oil & Gas ProPermalink Reply by Two Dogs, Pirate on October 1, 2010 at 5:56
Baron I checked SLO last night for Linda bunch of maps for that Township and Range with most of them having to do with the Dolet claim. Nearly all the maps show 630.80 but one showed 633.30 acres.

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