Replies to This Discussion

Permalink Reply by Two Dogs, Pirate on May 3, 2016 at 9:51

Are you in the unit?

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Permalink Reply by Gregg Hosey on May 3, 2016 at 10:46

Yes I am

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Permalink Reply by Skip Peel - Mineral Consultant on May 3, 2016 at 11:00

Do you have a lease?  What section are you in?

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Permalink Reply by Gregg Hosey on May 4, 2016 at 5:21

I do have a lease, in sect 5

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Permalink Reply by Gregg Hosey on May 4, 2016 at 5:24

Is there a generic demand letter, just fill in the blanks, or would i need a lawyer?

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Permalink Reply by Skip Peel - Mineral Consultant on May 4, 2016 at 5:41

Demand letters are often ignored as far as a response unless it comes from a recognized O&G attorney/firm that has a reputation for following up with litigation.  Most of those top notch attorneys do not send demand letters unless the client promises to file suit if there is no acceptable response.  To do so would undercut their professional reputation with the industry. Do it yourself demand letters can sometimes be effective but are not the best place to start IMO.

Here is what I suggest:  Contact Chesapeake by email so you have a record of the communication.  Provide the name that appears on the lease.  Are you that person?  If you have a copy of the recorded lease, send the instrument number, book and page and parish where recorded.  Explain that you have not received payment of royalties as required under the lease and ask for an explanation.  The response you receive will help you know how to proceed going forward.

http://www.chk.com/contact

This well is the unit well for Section 5.  Did you ever receive royalty payment on this well completed in March 2011.

http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo2...

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Permalink Reply by Gregg Hosey on May 4, 2016 at 5:56

Thank You Skip for the info. Yes my name is on the lease, and I do receive royalties on that well #241785

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Permalink Reply by Skip Peel - Mineral Consultant on May 4, 2016 at 6:09

You're welcome, Gregg.  I think your chances of receiving an explanation are good.  HC or Cross Unit Wells have created compelling reasons to get the allocation of production and the proper interest percentage per royalty recipient correct which can sometimes take extra time.  CHK is a good example of less than stellar title due diligence in the original formation of their units and lack of or less than accurate on-the-ground unit surveys including each individual unit tract.  Don't forget to provide CHK with your owner number. Good luck.

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Permalink Reply by William W. Waring III on May 10, 2016 at 10:06

Both Nguyen wells, the 1 and 2, surfaced in 32-16-14 and producing from 5 and 8-15-14 have been producing strongly for a year, but no one in either unit (5 or 8) is being paid for the Nguyen wells because the division of interest / land work is being adjusted, it is taking forever. If you are being paid for the original unit well, the Morrell 5, you are probably ok and will likely be paid for the cross unit lateral wells...eventually, CHK has said division orders for the Nguyen wells will be distributed at the end of May or early June. I doubt you "fell through the cracks." 

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Permalink Reply by Gregg Hosey on May 11, 2016 at 5:11

Thanks William, I just got an e-mail back from CHK saying the same thing.

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Permalink Reply by William W. Waring III on May 11, 2016 at 6:19

No problem. 

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