Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on February 26, 2024 at 11:19

Too early to be looking for royalty.  It usually takes about six months but I've seen it take longer.  I would expect to get a first payment in April or May.

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Permalink Reply by RONNY on February 27, 2024 at 5:42

Thanks Skip.

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Permalink Reply by Skip Peel - Mineral Consultant on February 27, 2024 at 9:51

You're welcome, Ronny.  I'll take this opportunity to remind you and the members that the first checks for new wells are the largest most mineral lessors will receive.  First, that check is for multiple months of production.  And secondly, those are almost always the highest producing months in the life of a well.  Both of those are increased when you have multiple wells which should go into pay at the same time.  For Louisiana Haynesville wells, severance tax will be deducted from your first checks but will be reimbursed to you at a later date after the operator has submitted the well report to the state for the first 24 months of production or until well payout which ever comes first.  Good luck.

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Permalink Reply by RONNY on June 25, 2024 at 3:57

Here we are 8 months since completion and still no revenue from the 2 wells I mentioned.  There is no reason to delay royalty payment for 8 months after turning to sales.  I have spent over 10 years chasing my money from Chesapeake Operating and trying to force them to follow lease terms.  I am at a point where I believe I'll entertain some of the many mineral purchase offers I constantly receive.  It will be a burden lifted to have Chesapeake out of my life.  I said it over 10 years ago and it still holds true today, they are an immoral and corrupt company. 

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Permalink Reply by Skip Peel - Mineral Consultant on June 25, 2024 at 5:00

Ronny, sorry to hear but you are joining a pretty big club of frustrated Chesapeake lessors.  For numerous reasons.  I have a client that is in the process of fielding offers for his minerals in a CHK HA unit.  He was so fed up, he sued CHK.  Unfortunately, he did not win.  Now he just wants to be rid of CHK.  It is a reasonably good time to pursue a sale.  Good luck if you decide to do that.

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