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

I got one yesterday

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Glad to hear CHK is now showing deducts on their stubs.  Didn't mean to imply you were a turnip Ronny.  :)

Here Is Chespeake's response.  It's embedded.  Who knew?

Chesapeake pays the net price whereas most other oil and gas companieses pay
the gross. We embed the deductions in our price we pay the owners.

So per your lease, we are allowed to take compression, fuel, gathering,
processing, treating and third party deductions in order to move the gas to
a sales point down the pipeline. So that is why the price is so low
compared to other companies/reports.

I would make sure they are not doubble-dipping.  You mentioned that your check stub sets out deducts for gathering and fuel.  I would confirm gathering and fuel are not embedded in the net price. 

Chesapeake has a FB page and ifUOP comment on it someone will reply to you, maybe they will answer this for us all :)

I've always had a concern about CHK double dipping, since they show a net price and then apply the other deductions on the stub. 

Other questions will hinge on the Magnolia Lease suit that has been appealed and I also heard that there was a motion to reconsider on this also.

I also wonder why these attorney's would not go after CHK via Clayton Act!


Some landowners are claiming leasing collusion (in court) per CHK's seemingly double-dealing shenanigans.

Yet since I'm not a lawyer, I'm unsure if such an anti-competitive conspiracy would rise to the level of anti-trust (or not).


Not sure what Clayton Act  is but glad for the appeal in LA. 

Our problem is same as Magnola case only our clause is a gross royalty clause and specifies they can not deduct gathering, transportation, etc.  which I believe the judge in La. case said they would have won if theirs had stated such. 

They are still charging us deducts, and ignoring our demands.

If there is any good lawyer out there that wants to take this on let me know.  It is in Texas.

The Judge vacated his ruling in Magnolia Point.  Mickie, I sent you a friend request to discuss if you would like.

Didn't get that letter but did see tax notice from Johnson County. 

It was wrong..at least I thought so. The statement was for 13 wells there.  That's 11 more then on the land.

The tax office checked and said no we have 13 wells on that lease according to the tax records.

Chesapeake of course got a call.  Seems there are these wells..but as they are drilled they are being capped off ...that division orders won't be sent til all wells are complete.

Here are the reasons I have thought of of why they have done this.

a) they drilling as many as they can there before fraking is halted

b) they spending capital to drill and not produce to avoid paying dividends to stock holders

c) they capping wells to keep gas from the market for ? reasons

Whatever is going on..there are 13 wells there or will be soon and no division orders but being taxed for the wells as a royalty owner.

Anybody else know what is going on here?

Ben will post the well numbers soon as I can get them together ..but tonight its debate time.

I recieved this letter and believe they send it out every year as a requirement from the state. I have also recieved the same from devon energy, once a year.

 I too have received a letter from them but our well in Shelby county Tx was bought out by Unit petroleum so the only checks we got from Chesapeake were for the first year and a half of production  that caught up with us after my father's passing.  I really am not sure what I am looking for on the stubs but the price we got from CHK and the price we got from Unit are different.


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