Did anybody else get a letter about (Royalty Owner Rights) from Chesapeake?

I got one yesterday

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What did they have to say?

no not yet, what did it say? Very curious since they are 5 months behind in payments to us.

Section 91.504, Texas Natural Resours Code, gives an owner of a royalty interest in oil or gas produced in Texas the right to request from a payor information about itemized deductions, the heating value of the gas and the RRC ID number and it goes on!!

Sounds like one thing they are doing is trying to establish support for a statute of limitations defense in response to future potential claims for underpayment of royalties.  In Texas, such a claim must be brought within 4 years of the date of underpayment, or the date on which a person through the exercise of reasonable diligence would have discovered the underpayment.  You are now on notice as of the date of receipt of the letter that as part of your duty of due diligence, you can request additional information if you believe you are being underpaid, such that you cannot claim you did not discover you were underpaid because the deductions, etc... that result in your underpayment were not disclosed to you on your check stub. 


Thanks for the heads-up.  You truly are a GHS do-gooder pro.



So should we request the information from them or not?  Would it really tell me anything?  Would I be able to really tell if the itemized deductions were correct or not.....no.

Actually, what I would do is request the information and then post it on this website along with the other information they do provide on your check stub, along with the well name and location of each well youa re getting paid on, and see if any of the experts on here think there is something wrong.

The gathering and other deductions may very well look normal on the check stub.  It is the price that is out of line.  Always, always , always below every other operator in the prospective play.  June 2012-- Chesapeake  2.04 before deductions,  Petrohawk 2.37 before deductions.  May 2012--Chesapeake 1.68 before deductions,  Petrohawk 2.27 before deductions.  It is the same month after month.  The question that needs answering is "Why Chesapeake's pre-deduction price is so much lower than all of the other operators"  Thanks.

Are those prices for the same well, or wells near each other?  Send a letter to CHK setting out the differences and ask for an explanation.  I haven't heard of anyone on this site who has done that and shared what the response was. 


I have a royalty interest in a Chesapeake Haynesville unit in Desoto Parish Louisiana. I also have an interest in a Petrohawk unit within 1 mile of the Chesapeake unit. Each month I compare the mcf price for each unit and every time Chesapeake's price is lower than Petrohawk's. I am speaking of the pre-deduction price. There is a large group of Chesapeake royalty recipients in this same area who have also noticed this trend. We would all like an explanation from someone at Chesapeake as to why this is so. Please forward this message to someone who can help. I and many other Chesapeake royalty owners await your reply.

Thank You

I sent this message to revinquiry@chk.com tonight.  Odds are I will not receive a reply as they are large and I am but a piss ant.  However I will post any info I get.  Good luck to all.

Very good.  One question though... it is my understanding that the price CHK quotes on its royalty check stubs is a net price and not a "pre-deduction price."  That is why they also report zero deductions on their check stub.  Is that what you see on yours?  In other words, what you may be comparing price-wise is a "pre-deduction" price from Petrohawk and a "post-deduction" price from CHK.  Thus, the question to CHK is what deductions are being taken into account in coming to the net price reported on the stub. 

My check stub shows a "price" at the left side of the stub.  As you work your way to the right of the stub or "statement" there are deducts of GA and FA.  GA is the gathering charge and FA is a fuel charge.  Chesapeake began showing deducts on the "statement" in the last few months.  I can live with the deducts as dictated by my lease.  It is the ridiculously low starting price that has me baffled.  Why can every other operator get a better price?  I believe I know the answer, I just need to hear Chesapeake's explanation.  And yes I am comparing "pre-deduction" prices from both operators.  I rode in a turnip truck one time, but I didn't fall off.  LOL


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