Replies to This Discussion

Permalink Reply by Parkdota on February 1, 2011 at 8:32

I thank God every day I don't have to deal with Chesapeake.  I would have rather leased my minerals for FREE than dealt with them for 20+ years.

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Permalink Reply by kittycatmama on February 1, 2011 at 16:10

I second that. Have dealt with Petrohawk and Encana and both have been great to deal with.

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Permalink Reply by Checkmateking on February 1, 2011 at 17:35

Lesson learned, when you deal with CHK make sure you get a certified check contract the day you sign any lease!

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Permalink Reply by Mac Davis on February 2, 2011 at 17:16

Heck, Checkmateking, require cash plus two forms of ID.

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Permalink Reply by CypressKnees on February 2, 2011 at 2:15

Did Chesapeake do this in Louisiana?

 

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Permalink Reply by Parkdota on February 2, 2011 at 6:11

CypressKnees, the answer to your question is YES.  Many folks wouldn't spit on them if they were on fire.

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Permalink Reply by Greedy Landowner on February 2, 2011 at 5:29

I would really like to see the decision on this one. CHK has proven by previous behavior that the only one bound to that lease is the property owner until money actually is paid 45 days later. But they also have to do the complete and exhaustive title work to make sure its all straight before they pay the bonus. It seems they only give the title a quick look before the lease is signed. Obviously they are not thorough initially because of cost and time involved. You cant necessarily blame them for setting it up this way because its smart business on their behalf but it does leave exposure to litigation. So does a court say the leases in question are not binding until paid and if so you open the same door out for the property owner?

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Permalink Reply by Max on February 2, 2011 at 9:17

"give the title a quick look before the lease is signed. Obviously they are not thorough initially"

 

?????    No, don't come with your papers for me to sign until you're ready to stand behind your word. 

 

If I were the man doing the record search and keeping my ducks in a row, while the guy next to me flashes through the filed deeds and then spreads out like fire ants to 'lock' in leases, that is not smart business.  

 

That is what I call dishonest and greedy.  That same guy would also entertain the ideal that maybe he should be the only one who is allowed in the clerk's door and then lock it behind him to keep everyone else out.  

 

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Permalink Reply by Henry on February 2, 2011 at 6:25

Another very good read on this entire topic is here:

http://blogs.forbes.com/christopherhelman/2011/01/31/chesapeake-ene...

It all starts at the top.

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Permalink Reply by Parkdota on February 2, 2011 at 7:08

Great read.....thanks.  You know, it's one thing to irritate a mom and pop land owner yet another to infuriate a big billionaire land owner.  These potential lawsuits will be interesting to watch.  I would imagine Chesapeake is use to pushing around the little guys but have made a mistake on this one....although the legal rangling will take years in court.

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Permalink Reply by P.G. on February 3, 2011 at 5:05

In real estate, offers are generally accompanied with a deposit, ernest or good faith money that is held in escrow..

Why shouldn't mineral lease offers be handled in a similar way?

 

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Permalink Reply by Linda Whatley on February 3, 2011 at 5:08

That's a great idea P.G.  Maybe if they had to do that, they'd think long and hard before trying to back out of a deal, and/or they'd think long and hard BEFORE they made the deal!!!

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