landowner

Well Paid off - now what?

SCAN0096.JPG Just received the 3rd Quarter Payout Statement from Chesapeake on the well in my section.  I am an UMO.  The 2nd Quarter Payout Statement showed the well had an outstanding balance of $47,525.05.  The 3rd Quarter Payout Statement shows a Net Proceeds of $117,507,81 which put it in the black at $56,345,87. 

I was expecting to find something along with the Statement to indicate that they would be contacting in the near future, but alas - zilch.  Advice would be appreciated.

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on November 29, 2014 at 11:45

Unless the amount you are owed is below the minimum amount required for a monthly check, you should be receiving a check soon.  I wouldn't just wait to see if it arrives.  I would contact the Chesapeake Division Order Department (use the link at the end of this reply to find the phone number and email address) and confirm you decimal interest in well production.  Ask to speak to the staffer responsible for you well (629848/Bryan 9-16-15 H-1).  You should ask that staffer the number of acres in the unit and what your ownership interest in acres is calculated to be.  Your share of production is your acres owned divided by the acres in the unit.  For example, if you owned one acre in a 640 acre unit you decimal interest would be 0.0015625.  Be prepared to provide the staffer with you social security number for tax purposes.  They may want to send you a form to file out in that regard for documentation in the pay deck. 

http://www.chk.com/owners/owner-faqs


landownerPermalink Reply by Tommy Johnson on November 29, 2014 at 14:21

I returned signed Division Orders on 01/27/2011 and 08/29/2011 (Return Receipt was dated as Received September 10, 2011 Mailroom 7).  SSN was given at that time.  I'll give them a call Monday and check my status.  Thank you again for your timely advice.


landownerPermalink Reply by Tommy Johnson on December 1, 2014 at 10:56

called Chesapeake this morning about 10:00. Was told to e-mail the Payout department (payouts@chk.com). Gave them the well name, well number, and owner number. Asked them to confirm my decimal interest in the well and to avise as to when to expect receipt of any payments. No news to report as yet.


Oil & Gas ProPermalink Reply by Andrew on December 1, 2014 at 14:56

Tommy,

Keep in mind that if you are a UMO in Louisiana then the operator has 180 days from sale to pay you your share, so you may still be a few months away from payout+180 days. 


landownerPermalink Reply by Tommy Johnson on December 1, 2014 at 16:04

Thanks Andrew.  At the beginning of July the Payoff was $48,000.  The well actually reached payoff the middle of August.  Would that  be the start of the 180 days?


Oil & Gas ProPermalink Reply by Andrew on December 3, 2014 at 18:37
A sale happens every day with gas, so technically the day after payout would be the date, but since you probably don't have that information and they aggregate sales into monthly payments anyway, I'd take 180 days after the last day of the payout month to be safe. After your first check, you should receive monthly checks for the production from 6 months back (provided you're owed more than $100).

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