Replies to This Discussion

Permalink Reply by JD on August 18, 2010 at 7:09

Henry,

As I mentioned previously and mentioned by LesB, they should also ask who the transporter was. If transportation costs were high and the transporter was an affiliated company, wouldn't that be beneficial to know? It might also be beneficial to know who the other deduction amounts were paid to as well.

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Permalink Reply by Henry on August 18, 2010 at 5:22

Layla,

By my numbers, a landowner who receives $1 less for his gas, relative to other landowners, will receive almost $2,000 less, per acre, over the life of the well.

(My assumptions: UER = 5 Bcf per well, 25% royalty)

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Permalink Reply by layla on August 18, 2010 at 6:37

I accept any and all corrections to my math as well as my speculations on the amount of money at stake, regardless of where the extra vig/deductions/whatever might be going. I was using my recollection as I was not particularly successful in finding where some of the data about speculative EURs had been listed. I think it was on this site, but it has been 1.5 years or so-sorry for my errors/poor memory. If Henry is correct in his calculations, then that comes to $800,000,000.00 (eight hundred million dollars) for CHK's interest of 400,000 acres alone, which is a pantload of royalty loss. It will be extremely interesting to find out where this money is actually ending up depending on the reason(s) for the discrepancy in CHK's pricing and market price. We leased just over 3 years ago at a pittance per acre and have yet to see a penny of royalties. And I'm not betting the farm on when we will-just hope it is in my lifetime so I can enjoy some of it. Thanks to everyone for their feedback!

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Permalink Reply by G-Dawg on August 18, 2010 at 17:32

Henry, I ran a simulation adding $1 more to the existing price CHK paid from Dec. through Mar. and it was a difference of $8658 just over 4 months. That for approx. 50 acres.

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Permalink Reply by Henry on August 20, 2010 at 23:15

BUMP! Good morning everyone... I've only received info from one landowner in the last few days. Please take the time and send me the info from your royalty statement. You don't need to include your name. I will keep your identity confidential, if you wish. I NEED MORE DATA!

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Permalink Reply by Jeff on August 21, 2010 at 7:13

Henry,
I have June's numbers now. Well #12 on your list JW is 3.75. Well #13 JW is 4.05
Can you post your spreadsheet on the main post so it will show on top of every page? I had to search through the pages to find it. You're doing good work, keep it up.

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Permalink Reply by Henry on August 21, 2010 at 7:33

Jeff,
Thanks. Yes, that's a good idea to add it to the main post. I'll try to do that.

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Permalink Reply by Henry on August 21, 2010 at 13:55

I have updated my information, and am now posting it in the initial discussion. You will see that for a couple of people I have posted gross and net. If anyone wants to update me with their net info, I'll include it.

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Permalink Reply by skipcrawford on August 22, 2010 at 18:04

i just saw this discussion we have 2 wells producing at this time the first is #623708 1-14-15 H-1 with production starting in 6/09 with gross payments of 6/9-3.04 7/9-3.08 8/9-2.45 9/9-1.90 10/9-2.74 11/9-3.14 12/9-3.27 1/10-4.83 2/10-4.51 3/10-3.74 4/10-3.05 5/10-3.38 well #629401 12-14-15 H-1 starting 12/9-3.32 1/10-4.81 2/10-4.50 3/10-3.73 4/10-3.06 5/10-3.39 I called the revenue department at chk and was told they sold on last 3 days of month to highest bidder. if only one bidder you do the math. every time i have called chk they have handled my call very professonially. they seem to be very compartmentilized, information was very limited. they would simply tell you what they said they knew and forward you to another department. i would be very interested in your results as friends that have leases other than chk are recieving much higher prices. this could be due to other factors such as much smaller companies having to get more since there gross production smaller every penney has to count . also we compared btu and usually only 1 or 2 different. thanks for taking time to do this. skip

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Permalink Reply by Les Bamburg on August 22, 2010 at 18:15

Skip, what Chesapeake described is selling gas during "Bid Week" and it would cover baseload gas for the following month. So gas sold during the last week of August would be for September production and delivery.

By the way, a bigger company should get better prices - not worse.

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Permalink Reply by Henry on August 23, 2010 at 0:01

skipcrawford,

Thanks so much for posting... Can you tell me if you have cost-free royalties?

Also, you could help all of us out by calling Chesapeake, and asking, for say March, April, May of 2010, what was the gross price they received when they sold your gas. Also, ask them who they sold the gas to (was it one of their affiliates?) The number on your monthly statement may not be the gross price (see Chesapeake's sample monthly statement on their web site). Please get them to tell you the gross price, as well as any deductions they took that reduced that number down to the number you see on your statement. And then please explain that back to us. Many on this site would like an understanding. This may take a bit of pestering on your part, but you and we will be happy you did, if we are ever going to get to the bottom of this.

Also, if you could get your friends' data and report that, I'd appreciate it. I need data from other producers, so I can compare Chesapeake's prices to theirs. The more data I get, the more meaningful are the comparisons.

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Permalink Reply by adubu on August 23, 2010 at 5:46

henry-- if you want this data for month of June 2010-- gross 3.77 includes BTU factor of 1.056--- in the CV field Minden --Rusk County, Texas-- SD operator--goes with prior data I gave you.

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