What Price Are You Getting for Gas? Last Update: March 25, 2011

Hello Everyone,

 

Here are the latest numbers.  If anyone else wishes to participate and provide data for my survey, please follow the instructions below.  I welcome all data.

I am now asking each respondent to provide me the following:

Section/Township/Range -- everyone (if you are in Texas, tell me your county, and the survey)

If you get your check from Chesapeake, please tell me:
Price received (before severence tax)
Does your lease entitle you to cost-free royalties?

If you get your check from one of the others,  please tell me:
Company you leased to
Company who is operating the well
Gross price
Please tell me each deduction, and the amount.
Net amount (before severence tax).  [I know, gross minus deductions ought to equal net, but I just want to make sure.]
Does your lease entitle you to cost-free royalties?

If you are WI or UMO:
Company operating the well
Gross price
Please tell me each deduction, and the amount.
Net amount (before severence tax).  [I know, gross minus deductions ought to equal net, but I just want to make sure.]

Please send me the information via GHS email.  This discussion is getting too large, and sometimes a post gets lost if I don't check in for 24 hours.  All info will be kept confidential. I will continue to post back what I learn periodically. Thanks in advance.

Tags: Are, Gas?, Getting, Price, What, You, for, payments, royalty

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Permalink Reply by DrWAVeSport Cd1 on August 17, 2011 at 12:43

RAS,

Thanks for your info.  It is important to all royalty owners to contribute to this database.  Pass the word along to all royalty owners you know.   It is the easiest way to get the information needed to fight for just prices. 

 

Henry,  I checked postmark on 1st Qtr. 2011 statements from Chesapeake:  Postmarked May 31, 2011...  Didn't sign for till June 2, 2011.  Don't expect to see 2nd Qtr. till after Sept. 1st.  Guess 3rd Qtr. will almost be over before I'll know more about payout status.  Will update ASAP. 

Permalink Reply by Bacon on August 20, 2011 at 14:55
I'll post prices shortly.
Permalink Reply by Henry on August 21, 2011 at 0:03

Bacon,

Please send me your prices via GHS email.  I might accidentally miss them if you post them in a discussion.

Permalink Reply by DrWAVeSport Cd1 on September 7, 2011 at 10:16

Henry,

The CHK Pony Express finally arrived!  LOL 

Here you go:

CHK/Cedar Grove Field/Caddo Parish/Louisiana  Mayo 13-16-14 H-1: UMO prices: From CHK 2nd Qtr. Reports ending June 2011:

April 2011:  $3.180    (U.S. EIA wellhead price $3.98)

May 2011:   $3.279    (U.S. EIA wellhead price $4.12)

June 2011:  $3.342    (U.S. EIA wellhead price $4.19)

 

 

Note:  2nd Qtr. June 2011 total expenses $84,330 broken out as:

Drilling and Completion costs @ <$3,026>  (down from 1st Qtr. March 2011 of $79,741)

Equipment costs @ $14,542 (up from 1st Qtr. March 2011 of <$29,609>

Lease Operating Costs @ $72, 814  (up from 1st Qtr. March 2011 of $52,577)

(Total expenses for 1st Qtr. March 2011:  $102,709)

 

DrWAVeSport Cd1  9/7/2011    A GHS Thank You to you Henry!

 

 

Permalink Reply by Henry on September 7, 2011 at 13:33

DrWAVeSport,

Thanks for the numbers.  I'll add them into the survey.

Permalink Reply by DrWAVeSport Cd1 on December 5, 2011 at 7:00

Hello Henry, and Happy Holidays to You and Yours,

Finally saw the Chesapeake Energy Pony Express ride up on Dec. 2nd, carrying my CHK 3rd Quarter 2011 well reports/statements.  (Actually these aren't real financial "quarterly" reports, as they are "cumulative" numbers from the first day of well production to the most recent ending quarter, in this case, June 9, 2010 thru Sept. 30, 2011.  You have to work out the "quarter" numbers for yourself.)  I digress... 

Here are the 3rd Quarter numbers:

July 2011    104,410mmcf @ $3.362/mcf  (Gas Purchaser:  CEMI)

Aug. 2011    91,732mmcf @ $3.285/mcf  (Gas Purchaser:  CEMI)

Sept.2011    85,228mmcf @ $2.920/mcf  (Gas Purchaser:  CEMI)

CHK Statments report well payout is  -13.7K  @ Sept. 30, 2011...  

At Dec. 5, 2011...   Still waiting on a CHK check...

My e-mails to CHK demanding "check," were met with the following explanation: 

 "...If at that time we determine that the well has in fact paid out there will be a brief period for our division order analysts to verify ownership before the APO decks are invoked.  I verified that your correct address is in our system and I can assure you that when your check is issued it will be retroactive of the actual pay out date of the well."

LOL!  CHK Divison Order Analysts can "verify" my address and decided to withhold thousands of dollars of my mineral moneys for the past 17 months...and, it didn't take any "brief period" for CHK's Divison Order Analysts to "decided" to WITHHOLD AND COLLECT AND SELL TO CEMI - MY mineral estate MONEYS - in MY NAME - from MY ADDRESS/PROPERTY.   CHK Divison Order Analysts decided to do so on DAY 1, (17 MONTHS AGO), from first day gas was sold from said well! 

Brief waiting period?  Sure! 

And so it goes... 

I suppose I will eventually have to "Hold-Up"  the CHK Pony Express, like they did in the good ole' days, and just "rob" my mineral moneys back from those low-life CHK Robber Barrons!  LOL

Maybe I need to wait till after the Holidays?  Tis the Season, you know...

Have a Great One Henry.   Thanks for your GHS help, as always.

DrWAVeSport Cd1 12/5/2011

Permalink Reply by Pam on December 5, 2011 at 8:51

Get 'em Doc!  Good luck with them dad-burn, low-life, yeller-bellies!

Pam

Permalink Reply by DrWAVeSport Cd1 on December 5, 2011 at 9:58

Pam,

LOL!!!  Thanks. 

A Great GHS Happy Holiday Season to You and Yours, Pam.

P.S. I'm a great "shot".  LOL

Permalink Reply by Pam on December 5, 2011 at 11:09

and Merry Christmas to you!

Permalink Reply by The_Baron on December 5, 2011 at 9:57

The question is, haw do you feel about being UMI?

Permalink Reply by DrWAVeSport Cd1 on December 5, 2011 at 11:01

Baron,

Good ?    I imagine I would be equally as frustrated with CHK's treatment of royalty owners as I am with their treatment of UMI.  Just one thing (IMO) really separates CHK royalty owners and UMIs, i.e., UMIs wait a long wait til payday.  Both have plus and minus signs.  

UMIs don't get bonus moneys, but do get to capitalize expenses and get 100% of their share of proceeds minus expenses over the long haul.  What the "long haul" will be is yet to be see by both HS royalty owners and UMIs. 

If HS wells produce 20 years, ng prices go up over the years, wells per section increase along the way, and "drilling, completion, equipping, lease operating costs" go down...then

If HS wells don't produce for 20 years (economically speaking), ng prices keep going South or remain flat, wells don't increase per section and most HS sections remain HBP by one well, and costs continue to go up...then

I know my CHK royalty owner neighbors are just as unhappy with CHK as I am.  And, I share what information I do get with them.  CHK information they don't get. 

Baron, your question is the $64K question.  Going CHK UMI has been an "experience," to say the very least. LOL   I guess I would answer your question with: I enjoy a challenge.  And my signing of the presented CHK lease that my friends and neighbors signed would have been a travesty, IMO. That CHK lease wasn't worth the paper it was written on.  Again, IMO. 

Let's just say, Baron...If a legal "fight" is comin' then I want to fight'em wearin' my CHK UMI hat...not a CHK RO hat.   I have more ammo to shoot with!   LOL

DrWAVeSport Cd1 12/5/2011


 

 

 

 

Permalink Reply by w.r. frank on December 5, 2011 at 17:17

Any working interest owner (you are effectively a non-consenting working interest owner) with CHK is being systematically screwed. It is like a "net profits after payback" movie deal. Even with a % of gross, you will be screwed by CHK because you never know the "gross."

Sales to CEMI (a wholly-owned subsidiary) are not a sale. It just disguises a 3% marketing fee to CHK.

Everybody in the NG business in NW LA. knows that the NG at the wellhead is not marketable to anybody. The NG is only salable to the interstate and intrastate pipelines that maintain sales entry points into their system (and only after gathering, dehydration, treating and, in some cases, compression).

Why don't you redact you name and other identifying data on your quarterly report and publish the stuff on gohaynesville.

Royalty owners are going to get the information on discovery after filing suit against CHK.

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