Group Leaders Beware JPD Energy / CHK New Group Splitting Tactic they are using in Greenwood
Oct 4th 2008 -- After months of negotiations, the Greenwood Hills Group (over 350 landowners) signed with JPD Energy on behalf of CHK. We were given a 25 day Draft and a Pat on the back.
Oct 10th 2008 -- After reading on this board about CHK $ problems (Not paying until Jan) I called and talked to Pedro @ JPD. He told me the Drafts would be paid on time and everything was moving forward as expected.
I posted it here
Oct 20th 2008 -- I received a phone call from Pedro @ JPD Energy telling me that the landowners without Mortgages would be paid with the Drafts. Anyone with a Mortgagee would be required to have their Lender complete a non-disturbance form and mail it to JPD Energy . The Bank Draft would be paid if the non-disturbance form was received before the draft expired. If the non-disturbance form was received after the Draft expired the Landowner would be paid by check.
I asked Pedro about contatcting the other members of the Greenwood Hills Group explaigning this.
He stated that he was going to call everyone that he had a phone # for which I thought was strange (over 350 members)
Nov 5th 2008 -- (3 Business days before the Drafts come due) I received the non-disturbance form and a copy of my Signature page from JPD Energy in the mail. The letter was dated Nov. 4th
Along with the forms was a letter from JPD Energy stating
"The first set of drafts is scheduled to be funded Nov. 10, according to our bank. If we do not receive the completed forms from your lender, the draft will lapse, you will not be paid and your signature page(s) and W-9 form(s) will be returned to you"
Even though JPD Energy told me on Oct 20th that the forms would be required they took 17 days - 12 Business days to mail me the required forms
I have contacted my Lender (Chase Home Mortgage) and they have their own non-disturbance form that they require JPD Energy to fill out along with a few other things and $300
The $300 is a part of doing business but I cannot get the forms filled out and submitted in the 3 Business days that JPD Energy has allowed me. This is an Impossible Task in 3 days
Therefore according to the letter I will not get paid for my lease
I probably could have gotten it done if JPD Energy would have mailed me the forms within a reasonable amount of time. That and not told me that I would get paid by Check if the Draft expired
(Note: Faxed or Emailed forms are not accepted only Originals)
I feel that JPD Energy/CHK is using this Tactic to split up the Greenwood Hills group into 2 parts.
They will signup and pay the None Mortgaged and reject the Mortgaged landowners.
By doing this they will have successfully split our group into 2 groups and may have enough of our section signed up to Force Pool the Mortgaged Landowners.
I think JPD/CHK will then offer the Mortgaged Landowners a ridiculously low singing bonus or Force Pooling therefore Screwing us
I hear they have done that in Keithville after dropping their leases
I know that the Southern Hills group has not signed but have already been sent (well in advance) a Letter from JPD Energy explaining they will be required to complete a non-disturbance form
I also know that they are going to sign for Thousands less that the Greenwood Hills Group signed for..
I find it hard to beleive that JPD/CHK has leased Thousands of Mortgaged Landowners in the Past and has never asked for a non-disturbance form but now they are requiring one from the Greenwood Hills Group at the last minute (An Impossible Task)
Something Smells Funny
Bottom line is Beware of the New Group Splitting Tactic of JPD Energy/CHK
Oct 10th 2008 -- After reading on this board about CHK $ problems (Not paying until Jan) I called and talked to Pedro @ JPD. He told me the Drafts would be paid on time and everything was moving forward as expected.
I posted it here
Oct 20th 2008 -- I received a phone call from Pedro @ JPD Energy telling me that the landowners without Mortgages would be paid with the Drafts. Anyone with a Mortgagee would be required to have their Lender complete a non-disturbance form and mail it to JPD Energy . The Bank Draft would be paid if the non-disturbance form was received before the draft expired. If the non-disturbance form was received after the Draft expired the Landowner would be paid by check.
I asked Pedro about contatcting the other members of the Greenwood Hills Group explaigning this.
He stated that he was going to call everyone that he had a phone # for which I thought was strange (over 350 members)
Nov 5th 2008 -- (3 Business days before the Drafts come due) I received the non-disturbance form and a copy of my Signature page from JPD Energy in the mail. The letter was dated Nov. 4th
Along with the forms was a letter from JPD Energy stating
"The first set of drafts is scheduled to be funded Nov. 10, according to our bank. If we do not receive the completed forms from your lender, the draft will lapse, you will not be paid and your signature page(s) and W-9 form(s) will be returned to you"
Even though JPD Energy told me on Oct 20th that the forms would be required they took 17 days - 12 Business days to mail me the required forms
I have contacted my Lender (Chase Home Mortgage) and they have their own non-disturbance form that they require JPD Energy to fill out along with a few other things and $300
The $300 is a part of doing business but I cannot get the forms filled out and submitted in the 3 Business days that JPD Energy has allowed me. This is an Impossible Task in 3 days
Therefore according to the letter I will not get paid for my lease
I probably could have gotten it done if JPD Energy would have mailed me the forms within a reasonable amount of time. That and not told me that I would get paid by Check if the Draft expired
(Note: Faxed or Emailed forms are not accepted only Originals)
I feel that JPD Energy/CHK is using this Tactic to split up the Greenwood Hills group into 2 parts.
They will signup and pay the None Mortgaged and reject the Mortgaged landowners.
By doing this they will have successfully split our group into 2 groups and may have enough of our section signed up to Force Pool the Mortgaged Landowners.
I think JPD/CHK will then offer the Mortgaged Landowners a ridiculously low singing bonus or Force Pooling therefore Screwing us
I hear they have done that in Keithville after dropping their leases
I know that the Southern Hills group has not signed but have already been sent (well in advance) a Letter from JPD Energy explaining they will be required to complete a non-disturbance form
I also know that they are going to sign for Thousands less that the Greenwood Hills Group signed for..
I find it hard to beleive that JPD/CHK has leased Thousands of Mortgaged Landowners in the Past and has never asked for a non-disturbance form but now they are requiring one from the Greenwood Hills Group at the last minute (An Impossible Task)
Something Smells Funny
Bottom line is Beware of the New Group Splitting Tactic of JPD Energy/CHK
Views: 364
Replies to This Discussion
-
Permalink Reply by The_Baron on -
It's pretty standard to require some type of subordination for the mortgage. I guess thats what they are requiring from you. I do find it odd that they waited so long to send out the forms. My experiance with the larger banks (big nationwide banks) is that they are slow to approve any subordination which the Broker would also know. It is possible that they are boged down in title work.
Try contacting your landman. See if you can still be paid by check once your paperwork is complete.
-
Permalink Reply by Grice on
-
Can you detail the differences between subordination and nondisturbance? Also, can a lessee place demand upon a nondisturbance, if such actions are not protected by the lease? Accordingly, Is there a determination for consent of both the lessor and lessee, prior to any amendments of the lease, be it either subordination, nondisturbance, or any other separation of duty? If so, is that determination subject to inscription within the lease?
-
Permalink Reply by Meredith Ashworth on
-
The answer is no they are trying to get out of paying I have been working on this issue my self if anyone would like to please feel free to call me 318-762-9390 or email mlashworth31@gmail.com timing is very important
-
Permalink Reply by Two Dogs, Pirate on
-
I don't know a lot about all the wording that mortgage companies put into the mortgage but a lot of them say that the bonus money will be paid to the loan. You could maybe have the bonus money paid against your home loan.
-
Permalink Reply by Gas Baron on
-
KB
Our Group Leaders are doing as you stated.
They have bent over backwords for JPD Energy/CHK in the past and are working hard to get this done in an agreeable fashion.
I for one do not have the patiance that they have. I feel that we have done everthing that JPD Energy/CHK has asked, but JPD Energy/CHK continually ask for more with unacheivable time limits.
If JPD Energy/CHK wants to back out of the Leases-- then Backout-- don't lead us along.
If they do not get this lease done. I for one will not sign for anything less than 30 thousand per acre and 30% Royalites in the future they will just have to force pool me and pay me my 100% Royalties
Sorry but this is not a game to me. This is peoples Lives and Dreams being jerked around by JPD Energy/CHK
-
Permalink Reply by Rachel A. Hassell on
-
This is NOT standard for this non disturbance form to be done, in fact, if the greenwood group would look at the exhibit A---paragraphs 2.1 and 2.2 it is very clear---IF your current or future mortgage company asks for the subordination, then we will make them do the non disturbance. This was absolutely a way to get out of these. Meredith Ashworth and myself were contacted immediately when this came about--started on Halloween with the first email from one of our mortgagors (H & H Mortgage, LLC) and my husband is a landman with Cypress Energy. I have had all of the leases, exhibits, drafts, and the numerous revisions of these forms looked at by Cypress Energy's attorney--sure...a class action suit could be brought--but this is very timely, expensive and usually not favorable to the landowner. On Friday the 31st, we immediately started contacting the neighborhood and attended the town meeting last nite. Only a handful of people have been able to get this done--anyone of mine that I was able to sign right then and there---a few local companies, and the rest--?? at this point--i think everyone is questioning if the money will come. We have offered and have been successful with completing refinances so I can personally sign this form. We will be working all weekend to get any remaining landowners done. Not only to get this very serious amount of money--but with rates being so low--not only have we been able to satisfy this requirment that JPD has given, but at the same time on avg lowering current mtg rate by 1.5% or better!!
-
Permalink Reply by Gas Baron on
-
Reply by The_Baron
It's pretty standard to require some type of subordination for the mortgage.
I have no problem filling out this form and paying my Lendor.
My problem is with JPD Energy/CHK
They know that the Greenwood Hills Group is mainly comprised of Subdivisions with most Landowners having a minimum of 1 acre and a home on it and atleast 1/2 with a Mortgage
They could have told everyone at the signing party on Oct 6th that this was a requirement and passed out the forms along with the all the other paper work we were given at that time
That would have given everyone a Month to get it done.
Or even mailed out the forms around Oct 20th when I was informed that it was a requirement.
Not 3 Business days before the Drafts expire.
Try contacting your landman.
JPD Energy went from a Receptionist answering the phone as JPD Energy to Voice Mail answering as James Dodson's office (James Dodson's = JPD) obviously not taking calls anymore.
Reply by Two Dogs
I don't know a lot about all the wording that mortgage companies put into the mortgage but a lot of them say that the bonus money will be paid to the loan. You could maybe have the bonus money paid against your home loan.
No I would get the Bonus Money. The non-disturbance form has to do with the payment of Royalties in case of Foreclosure
Again I have no problem with getting the forms done. But not in JPD Energy/CHK 3 Business Days time frame
Impossible.
I personally do not need the Money. Of course I would like to have it but I am sure there are others that may need it. They may have even spent part of it thinking that it was a done deal. That is what we where lead to believe
Happy Holidays from the Grinch (JPD Energy/CHK)
-
Permalink Reply by Two Dogs, Pirate on
-
I was thinking of beating them at their own game. If what they are trying to do is get out of the deal or lowering the bonus amount by putting the mineral owner in a trick bag of a short time period in having to deal with their mortgage lender. I am like you GB, I don't need the money, but money is money, be it going toward a mortgage or in my bank account.
-
Permalink Reply by ETOilman on
-
Sounds unfair to me with the time frame given, obviously. We have tackled this problem with a ratification of the lease from the mortgagor in lieu of a subordination. It sounds like CHK is trying to do the same with the non disturbance form. Did the leases not have a no drill clause? Cheasapeake has done more to ruin my industry in the last year than any operator I have ever known. We will not work for them.
-
-
Gas Baron, are you one of the greenwood/waterwood estates landowners? we've been talking to everyone we can....we have dropped everything to do what we could for as many homeowners possible. Very very few have succeeded in this, so just trying to gauge where everyone stands...
Support GoHaynesvilleShale.com
Top Content
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…
ContinuePosted by Keith Mauck (Site Publisher) on November 20, 2024 at 12:40
Not a member? Get our email.
Groups
-
Franklin County, Texas
9 members
-
Cass County, TX
120 members
-
Rusk County
97 members
-
Livingston Parish, LA
34 members
-
San Augustine, TX
386 members
-
Miller County, Arkansas
27 members
-
Sabine Parish, LA
455 members
-
South Caddo Parish Group
440 members
-
Natchitoches Parish
400 members
-
Bienville Parish, LA
244 members
© 2024 Created by Keith Mauck (Site Publisher).
Powered by
