Expert Info Please: Long Wait for Division Orders

I am leased to Chesapeake and they have drilled a well in my section. The serial number for my well is 240766. It is in S12-T16N-R14W in Caddo Parish. Sonrise hasnt been updated since 01/03/2011 at which time this is posted; "RIG UP COIL TUBING UNIT; COMPLETION OPS". Since I can tell that they are connected to their gathering system and am relatively sure that it is turned to sales, I called Chesapeake and requested info. The young lady was very polite and checked for data on the well. She then told me that it was indeed "turned to sales" as of 01/12/2011. Then she went on to tell me that "division orders" would be sent within 4 to 6 months. Is this timeline normal/ordinary or is there something I should/could do to expedite. It just seems like an inordinate amount of time for the company to delay and use money that should be being paid to the mineral owners leased to them. Any help or info will be appreciated.

Views: 407

▶ Reply to This

Replies to This Discussion

Permalink Reply by JHH on February 10, 2011 at 12:44

I've heard the same happening to a lot of people. Hopefully your division order will be correct when it arrives because it takes many more months to correct if there's something wrong with it.  Your lease should/could state how long the producer has to pay after first date of production,  Some leases require the producer to pay interest in addition to the actual royalty.  Good luck.  It's very frustrating but eventually you will be paid.  Keep on them.

 

Permalink Reply by John Smith on February 10, 2011 at 14:17
JHH

What is the best plan of action if division order is not right from CHK?

Thanks
Permalink Reply by JHH on February 10, 2011 at 14:33

You have to call their division order division.  HA!  sorry... feels like the office of silly steps.  If you get someone, explain what makes it wrong.  Then you need to send documentation.  How many acres you own and how it's divided if there's more than one owner.  At some point in all of that... it gets sorted out.  Just takes time and it's very frustrating.  Someone on this site had a good explanation of how this is done.  forgot who posted it but they know more than i do.  best of luck.  i hope i never have to go through it again.  I was lucky because relatives knew better.

 

Permalink Reply by Linda Whatley on February 15, 2011 at 15:23

I got my Chesapeake division order corrected in less than a week! 

Permalink Reply by Keith Mauck (Site Publisher) on February 17, 2011 at 4:22

What's your secret?

 

Permalink Reply by John Denison on February 10, 2011 at 14:50

With CHK, it is reasonable to expect a 3-6 month delay between completion and royalties.

 

FWIW, I have rung up the CHK Call Center on several occasions over the last 18 months.  I have always found their CSR staff to be courteous and knowledgable.

 

When you get an owner number, do sign up at CHK's "Owner Relations" page. There, you can request direct deposit of royalties, look up past check stubs and more. 

 

Finally, when those division orders do come in, I would suggest having an experienced O&G attorney look them over. Louisiana law does not require you to sign a division order to receive royalties due you. 

 

Good luck - especially with being patient!

Permalink Reply by Bro Tommy on February 10, 2011 at 15:10
Thanks to ALL who replied. As always the members of GHS are helpful and gracious. God Bless You and those YOU CARE FOR.
Permalink Reply by Frank on February 10, 2011 at 16:10
Their DO office needs to process the lease.  A DO signed by you is not required in the state of Louisiana.  I got back royalties yesterday.  The lease was signed in late July and I deffered the check one month to get it out of 2010.  My blank original DO is still here at the house.  It's not required!
Permalink Reply by Bro Tommy on February 15, 2011 at 14:38
Another question please... Since the well was turned to sales on 01/12/2011 and it is now 30+ days after... and still no info on SONRIS as to scout or test results, choke etc... is there another source where I may can obtain more information Re: the daily output etc.? Still talking about ser # 240766 in 12-T16N-R14W.
Permalink Reply by Skip Peel - Mineral Consultant on February 15, 2011 at 14:52
No.  The SONRIS Lite Well File is the first place to show the IP data.
Permalink Reply by Les Bamburg on February 15, 2011 at 15:28
BT, there are various places the test rate may appear first including the Sonris Well Information, Sonris Potential Report and the Shreveport Times.
Permalink Reply by w.r. frank on February 15, 2011 at 15:52

Yes!!! You can sign up on CHK website to get daily production reports on your well by email. There is about a four day delay on reporting date, but every morning I get up and get production for four days earlier (this am I got my report for production on two wells for Feb. 11). I enter the daily data into an excel spread sheet and get an updated graph of decline curve and another of cumulative production vs. time.

 

Only works on CHK operated wells. No ability to get daily data if XCO, SWEPI or HK operate the unit. You are stuck with Sonris which, with rare exception, currently is November production reports in the middle of Feb. No excuse with internet and web reporting, but it is your tax $ not at work. In defense, Sonris is light years ahead of Texas RRC.

RSS

Support GoHaynesvilleShale.com

Top Content 

1 Looking Back At The Haynesville Shale - A Retrospective

Looking Back At The Haynesville Shale - A Retrospective
2 Pending Public Oil and Gas Hearings

Pending Public Oil and Gas Hearings
3 Arkansas Smackover Lithium Play

Arkansas Smackover Lithium Play
4 Aethon looks for Buyers of its Haynesville Assets

Aethon looks for Buyers of its Haynesville Assets
5 Notice Emails Are Back! Please review how they work.

Notice Emails Are Back! Please review how they work.
6 Comstock October Presentation

Comstock October Presentation
7 Haynesville Has 12.5 Years of Sub-$3 NatGas Inventory - Enverus

Haynesville Has 12.5 Years of Sub-$3 NatGas Inventory - Enverus

Blog Posts

The Lithium Connection to Shale Drilling

Shale drilling and lithium extraction are seemingly distinct activities, but there is a growing connection between the two as the world moves towards cleaner energy solutions. While shale drilling primarily targets…

Continue

Posted by Keith Mauck (Site Publisher) on November 20, 2024 at 12:40

Not a member? Get our email.

Groups



© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service