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Permalink Reply by adubu on July 3, 2012 at 11:13

need good cold winter that will do it

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Permalink Reply by adubu on July 4, 2012 at 8:18

Jay--- is that due to fact the decline in production of about 80% in these wells just now begining to show up in supplies without maintaning enough drilling of new wells to offset decline

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Permalink Reply by Roy Austin Smith on July 4, 2012 at 5:49

1.08 to 1.15 In Louisiana for month of JUly 2012. Chesapeake.

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Permalink Reply by adubu on July 4, 2012 at 6:10

Roy-- what and where are these prices?? you will not see July prices on your royalty check untill Sept at the earliest. Spot Nat gas prices HH futures closed at $2.89 tuesday 7/3/2012. Presently trading today at $2.94

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Permalink Reply by Roy Austin Smith on July 4, 2012 at 6:18

These prices are from Desoto parish Louisiana. paid july 2-- for month of may . one well has not paid off in two months. Cheaspeake is always lower than other companies. Does not matter what the futures close at. Chesapeak employee very rudely told me that they establish their own prices, which is very opposite. They are about Bankrupt.  The ceo  is trying his best to get all the money and let the company go. Hope, they will sell everything to someone.

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Permalink Reply by adubu on July 4, 2012 at 6:37

OK you quoting May prices not July prices. I agree CHK screwing people on their gas. My one royalty production in east texas May was $ 1. 84 ( This was gross and after all deduction of sev tax comp trans etc net was about 1.52)paid by SD which was lowest month prices to date in 2012. You received almost 40% lower than what most Brokers paid the Operator for their Gas. CHK got aroung the R Free clause by selling gas to the owners of pipeline near well and the gross received was net after transportation of pipeline included. In most cases the Pipeline was owned by CHK. Henry a member this site spend many of hours of his time collecting data and posted spead sheets to prove this.

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Permalink Reply by Roy Austin Smith on July 4, 2012 at 7:42

Yes , they hold two months back.  they are drawing interests on millions of dollars of the land owners money, instead of paying them. I don't know the laws in TX and La, but in Oklahoma , it was strickly against the law to hold back wages. Well you come out better than i did. good luck. Cheaspeake is selling gas back to Chesapeke at the prices they make up . Ocassionaly, you can get someone on the phone, that talks decent to you, but most of the time they are very rude and they are lying, but it is not their fault. they have to lie or lose their job. Unless you have well head price, and you will need to check that out too, they are holding out hiden expenses.  a lawyer told me that they hold out about 20 percent more than other companies. Maybe, i hope they will sell out. Yes, i sent Henry a good many prices for a while. he was doing a great job. I paid a lawyer about one thousand to write a letter.  He got the same BS that i was getting from them. the hiden expense come out of your income before you are paid.  you and I should be able to deduct the expenses off our income tax, but Cheaspeake is using it for their own benfit. Expenses should be handled like the taxes they hold out. good luck

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Permalink Reply by adubu on July 4, 2012 at 8:04

Roy--- not getting paid for May gas until July is the Norm for all since they pay us for the complete month of May then total production not calculated until end of month then they have to get paid by receiver then the accounting department has to receive all the data and then calculate all owners decimal % amount due so that just takes few weeks to get done and getting checks cut and out. So getting paid about 6 weeks after that months is completed is fair and the Norm. However the way they sell the gas on contracts with Independed  Broker or themselves is a different manner and with CHK that's where the conflict and problem with royalty owners is . As far as deduction on your taxes it is same to us where deduction taken before or afterwards we get net for reportable income we still get 15% depletion allowance. If we get gross and deduc expensive to get same net no different in taxable income. Yes best thing that could happen is CHK sell your unit and that's possible since they are selling assets.

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Permalink Reply by The Shadow on July 4, 2012 at 8:54

Approximately three (3) years ago I had the wonderful pleasure to meet Mr. McClendon, and I wish I could just tell him how thankful I am of the huge favor he did for me and my family.  You see, I ask Mr. McClendon, at that time, what his company was going to do in the area where we have property, since CHK had just 3D Seisemographed our land.  Mr. McClendon politely told me "look we (CHK) has enough  land leased to drill for the next sixteen (16) years.  CHK is not interested in your area", and quickly brushed me off.  At first I was a bit upset about his cordial reply, but now I am very glad he has followed through and we are not leased to CHK.  What goes around comes around.  Lots of luck Mr. McClendon, I think you will need it.  Like most wheeler dealers I am sure there will be many more opportunities for you.  Just had to vent, thanks everyone for listening, and have a good 4th of July celebration.

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