Why the H*#4@ did I sign a mineral lease?

Being part of a 640 unit is crap for the folks with small acreage. Its all a pyramid scheme. We all joined in this thing together to make money together...at least that's what the feeling WAS. I remember when the first checks were given out, many Shreveport natives boosted the economy for this area by shopping for big ticket items like cars, houses, etc. in hopes of getting more and better checks. But what did Chesapeake do? Send out Div Orders with stupid decimal points in the writings, such as .00003 for example. A lease in the beginning stated that the mineral owners would receive 25% of monies made. The Div Order to be signed states different rhetoric with that decimal crap. When I asked Chesapeake where did they get those numbers from, they answered me back with, "It's something we made up."  Mineral owners are treated like the enemy. What if Walmart was in this situation? They own the merchandise, but the only folks who make the real money are everyone except Walmart, (except mineral owners). Doesn't make sense. Try doing the math with screwed up numbers such as .0003 and see what you come up with. A bunch of zeros after a decimal point adds up to horrific under payments made to the mineral owner, the ones who own the product. And where are the guys in my 640 unit who own tons of acres and made nearly a million dollars? would be nice if they shared their profits with us guys making 80 dollars to 500 dollars a year. I signed up because I knew it would benefit those with small acreage as well as those who own large acreage. My neighbors are in shock and most folks are embarrassed that their checks aren't more lucrative  after receiving their initial payments of thousands of dollars, now we all get hardly anything. So much for boosting the economy for Shreveport. 

Tags: 640, chesapeake, division, law, mineral, order, owners, payments, pyramid, rights, More…scam, scheme, suit, unit

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Replies to This Discussion

Permalink Reply by adubu on July 5, 2013 at 13:20
Jay-- I am with you and could not agree more but hope you stay around for truely educational oil & gas discussions where we need good geologist knowledge in put I know Keith and a lot of us appreciate you sharing information with us. I don't know why i posted on this topic but could not stand it any more so added the math of what Lee net mineral was about. Hope he understands.
Permalink Reply by G.L. Jenkins on July 9, 2013 at 14:25

I've 40 acres over the Tuscaloosa and have been approached by many an oil and gas company but just knowing how crooked they are I'm just not interested in dealing with a bunch of assholes. I've better things to do, my kids can deal with them when I'm gone....

Permalink Reply by adubu on July 9, 2013 at 15:49
GL---that is very sad to hear someone say about a Landman. In general believe it not they are simply doing their job and mostly are on your side. You can not get the money value of your minerals without a operator drilling a well for you.Your money is in the ground. Nothing wrong to avoid operators that you desire to have no dealing with but in my opinions they are very few that are not honest. You do not have to wait until death takes you from this world to transfer your mineral to your children. If they are unleased non producing they have very low value and could transfer without any gift tax due-- simple thing to do-- also you could then enjoy seeing what it could do for your kids now rather than never know after you die. 40 acres if in good location could be huge for your children.
Permalink Reply by Hopeful About Natural Gas on July 9, 2013 at 19:17

That's very good advice adubu - simply transfer the ownership to your children if you are unable or do not want to deal with it. Plus, send your kids to GHS for an advanced education in minerals.

There are many old blogs about leasing and they can track what is happening in your area. My personal experience with landmen has been positive but I know during the mania days of 2008 many, many untrained people jumped into the work. Most of the amateurs have been shaken out by the downturn in leasing.

PS: if you mistrust the big O&G corporations you will find plenty of company on GHS! However, we may need them. Again, GHS is a great place to learn how to negotiate a good lease with a company no matter what its size.

HANG

Permalink Reply by olddog573 on July 10, 2013 at 5:22

I consider myself a pretty good judge of character, well, ex-wife not included LOL.  You can pretty much tell a crook when you are approached by them whether they be landmen or used car salesman, and I shouldn't leave out some preachers.  With that being said, I see a lot of bashing on here of landmen and drilling companies CHK being one of them.  I can tell you the landmen I deal with have been very upfront and I have had no issues with them.  Very good experiences.  As far as drilling companies go, CHK gets a lot of bashing on GHS, I have my issues with them as well, but I can tell you I have three wells with them and I am waiting for them to drill more because last time I checked my checking account didn't have 9 million dollars in it for me to do the drilling.  Come on back landmen and CHK, I got some land for ya if old G.L. doesn't want you on his!

Permalink Reply by Skip Peel - Mineral Consultant on July 10, 2013 at 5:39

A decided majority of company and independent landmen with whom I have dealt have impressed me as professional and forthright.  I do understand better than most the limitations of what they know or may be able to divulge.  I am constantly concerned that site discussions are dominated by negative comments some of which I am sure are justified while most are misunderstandings and misconceptions of those with little or no understanding of minerals and leasing.  GHS has always been a place for the dissatisfied to come and vent.  And there are plenty of members willing and ready to pile on.  In my experience this has led to a number of individuals who are too afraid to consider or negotiate a lease and others who are just mad and think they can punish the industry.  Both attitudes are ultimately counter productive for mineral owners.  I have heard from far too many members who have passed along personal instances of poor outcomes attributed to inaccurate perceptions and invective picked up on GHS.  As with life there are a myriad of opinions represented here and everyone must decide for themselves what and who to believe and how to use the information posted to the site.

I will gladly overlook the ex-wife, old dog.  I agree with your reply.

Permalink Reply by Bobi Carr ("parker") on July 10, 2013 at 5:55

Most of the landmen that I have dealt with are knowledgeable and trustworthy. I did deal with one that wasn't.  When that is the case, more up the ladder.  The person that I dealt with was young inexperienced and was trying to do his job during the frenzy.  

The most important thing is for land owners to educate themselves or seek professional advice.

Permalink Reply by G.L. Jenkins on July 10, 2013 at 5:53

I made my money in business and in real estate something I understand. I don't play the stock market nor will I allow drilling on my land which would involve me in having to deal with oil companies. I fully believe there are honest Land-men in the business and I also fully believe there isn't an honest oil or gas company on this earth. Mine is a piddling 40 acres so I am sure those corporations that own thousands of acres are in a much better position to get an honest deal than I am. To enter into any contract with a company requires the use of attorneys, anybody know where one can find an honest attorney ? LOL

Permalink Reply by Skip Peel - Mineral Consultant on July 10, 2013 at 5:55

A number of them, G.L.  And they are experienced O&G attorneys to boot.

Permalink Reply by Bobi Carr ("parker") on July 10, 2013 at 6:00

Randall Davidson with Davidson, Jones and Summers.

http://www.djslawfirm.com/

You can't find better or more honest representation.

Permalink Reply by tc on July 10, 2013 at 6:07

You make no sense!  How do you do real estate with out an attorney?  In MI, PA, & NJ some form of attorney was involved in the transaction.  You are also the poster child of why forced pooling is necessary, so young Americans don't have to go to the Middle East to protect our oil supply because you won't allow America to use its natural resources.

Permalink Reply by G.L. Jenkins on July 10, 2013 at 14:15

Act of Sale and closing attorneys are a dime a dozen. Young Americans don't go to the Middle East to protect our oil supply, they go there at the behest of our crooked politicians both right and left who sit on the boards of the many corporations who make money from War.

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