Replies to This Discussion

Permalink Reply by JHH on March 23, 2011 at 14:19

Very good.  I won't give up.  jhh

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Permalink Reply by layla on March 23, 2011 at 3:23

Has Chesapeake ever started sending any information at all on checkstubs?  I am anticipating an initial check soon and seem to remember someone (maybe Katie-can't remember exactly) saying that Chesapeake had indicated they would start doing this but I haven't seen anyone mention it for several months.  I monitor the production, price per MCF, (and especially deductions as my lease specifies cost free royalties) etc. and would like to have information on my checkstub without having to start with the emails, voicemails, certified letters, etc.

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Permalink Reply by Judy McDaniel on March 23, 2011 at 16:35

layla:

CHK's checkstubs give info but certainly not enough because they start with the net price.  I wrote, some months ago, asking for a detailed expense breakdown and here is what I got for the month of January 2010:

VOLUME COMPONENTS

Gross MCF (14.65) 91,240

Gross MMBTU (14.65) 93,700

System Fuel Deduct MCF       665

System Fuel Deduct MMBTU      701

Allocated Sales MCF (14.65) 90,575

Allocated Sales MMBTU 92,999  BTUFCT

3rd Party Fuel Deduct           283    1.0268

Net Delivered MMBTU 92,716

 

VALUE COMPONENTS

Allocated Residue MMBTU 92,999

Gross Sales Price   5.7510

Gross Sales     $543,837.14

3rd Party Fuel Deduct (1,628.91)      -0.30%

System Fuel Deduct (4,029.26)      -0.75%

3rd Party Fees        (36,814.26)      (0.3929) Per MMBTU

CMP Gathering       (39,377.25)      (0.4203) Per MMBTU

Rev Paid to COI from

   CEMI for Distribution      457,016.71       (0.8131

Gross Value Paid before

   Taxes      457,016.71

Net Price MCF         5.009

 

So, as you can see the gross price dropped from 5.7510 to 5.009 net price due to deductions, a 12.9% cost to me. The first month I was paid royalty, 33% was deducted for expenses, the second month 22%, third month 18%, fourth month 17% and the fifth month the 12.9%.  Interesting huh?

 

 

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Permalink Reply by Henry on March 24, 2011 at 0:01

I have no idea what you are paying 39 cents for as "3rd party fees."

 

Most people in my survey who pay gathering fees pay about 25 cents.  Your 42 cents seems high.

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Permalink Reply by Judy McDaniel on March 24, 2011 at 1:44

Henry:

Are you telling me from the data you have collected no one is paying 3rd party fees?  I have been charged from a high of 57 cents to the 39 cents for this expense.

 

And, CHK has consistently charged me 41 to 42 cents for gathering fees.  Do you know if "gathering fees" is a euphemism for pipelines?  Because I thought the courts had already held that the cost of pipelines could not be charged to mineral owners.

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Permalink Reply by RONNY on March 24, 2011 at 4:35

Judy's post appears to be more evidence of CHK gouging it's royalty recipients for unjust fees and expenses.  I really hate to see them doing this as I am awaiting royalties from Chesapeake and don't cotton to being "gouged".  Good Luck to you Judy.

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Permalink Reply by Henry on March 24, 2011 at 5:19

Judy,

I've never heard of a "third party fee."  None of my survey respondents have reported anything like it.  That might be something that CHK pays Questar, but I have no clue.  I assume "gathering fee" is the price they charge you to transport the gas (in a gathering line) from the wellhead (which I'm defining as the place where the gas leaves your well) to the point further down the line where the gas is sold to the market.

 

 

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Permalink Reply by JHH on March 24, 2011 at 7:33

did you sign a lease?  where is your property?  Hope much % royalty?  how much bonus/acre? how any years in the term?  drilling commitment?

 

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Permalink Reply by JHH on March 24, 2011 at 10:18

Gosh Darn,  I agree.  I think Katie is working hard to do the right thing.  Just has a tough job.  Hopefully all of the problems will be resolved while we're still alive.  Oil/Gas companies can outlast almost anything and anybody.  jhh

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Permalink Reply by Henry on March 24, 2011 at 13:07

I think there's no doubt that Katie has helped many GHS.com people move to the front of the line in getting a response from the people in Oklahoma.   That's very valuable aid.

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