Chesapeake Claims My Lease is Invalid and Won't Pay Royalties

Hello,

My name is Maggie Bryant I am a landowner with 20.335 net mineral acres in Shelbyville, Texas (Shelby County) . The well is Jackson SLB 1H Property No. 639428, this well consists of 382.47 acres. Chesapeake signed a P-12 stating My brother and I had 19 acres pooled in the Jackson SLB 1H well however, they have lied to me on several occasions. I sent them certified letter  however, they informed me I did not have a lease by telephone nothing in writing, the people at Chesapeake would not respond to me in writing only by telephone. I hired an attorney to send a letter to Chesapeake on my behalf, they did respond in writing to the attorney however, they informed the attorney my lease was invalid and that my brother and I had conveyed our acrerage to our relatives which is a bunch of crock and bull. The attorney wrote a second letter to Chesapeake on 9-17-13 requesting they put me in a pay status due to the documentation he provided to them, as of today they have not replied. There was no reply by date on the 2nd letter. I have been going back and forth with Chesapeake since 3/13.  Any person who can read can look at property ID R27663  on the tax records or appraisal districts records and see who is being assessed the taxes and obtain a copy of the plat. The deed is also on file in the Shelby County Courthouse. Can anyone recommend an attorney who is willing to demand immediate payment within 30 days or  take these people to court, all they seem to do is stall and lie for more time. I believe they have paid landowners who were not entitled to payments. Any referrals are appreciated.

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Maggie, what leads you to think that CHK may have paid others for your mineral interest?  Has your attorney performed a search of the public records of Shelby County regarding your tract?  Since you are seeking referrals, what happened to your previous attorney who wrote the letters for you?

The copy of the letter I received from Chesapeake states My brother and I conveyed our land to our relatives on a deed dated 4/01 . The deed showing our ownership has a different legal description their information is incorrect. Yes a public search has been completed and this information has been sent to Chesapeake. I have not heard anything from the attorney who sent the last letter on 9-17-13.  I did notify him the last letter he sent for me had no respond by date ,this  give's Cheapeake the opportunity to take as long as they want to pay or respond. I have looked at the declarations, my brother and I and other relatives of mine are not included. These people are crooks or whoever does their title work is incompentent.  I need someone who will get Chesapeake corrected in a timely manner.

Before you run up any more legal bills I suggest that you contact the attorney who sent the last letter and request that he/she follow up.  Your frustration is obvious and you may have the facts on your side however it often takes longer that the time elapsed since the letter was sent to get a reply.  Particularly if CHK or the land company representing them need to perform additional title due diligence.  Hiring another attorney and writing more letters is unlikely to speed up the process. 

Skip,

Thanks for the information you sent me. My deceased uncle and aunt's heirs are having the same problem with Chesapeake. My lease will expire in 2014 I hope there is a law stating I do not have to allow them to lease my land ever again. 

Maggie~

There is no law compelling you to lease however you can be force pooled by unit application and approval of the TRRC.  I'm surprised that a TRRC staffer suggested you get an attorney and file suit.  I consider that very poor advise.  Litigation should be a last ditch measure.   One of our early GHS members has a suit against Exxon here in LA.  that has not made it to court in 4 years.  Litigating with energy companies can be very expensive and take years.   If the problem lies in inaccuracies in the public record and you can not get an adjustment from CHK your best course may be to correct the public record. 

Skip,

There are no inaccuracies in the records. Chris Spencer the representative from Chesapeake included our 19 acres on the P-12 which is a sworn statement  to the State of Texas acknowledging our 19 acres being pooled. Mr. Spencer is their Consultant and also the survey completed by Jeffery Elsworth Hudson for Chesapeake. They are stalling, there should be a law against their practices. The state of Texas does not file lawsuits on behalf of landowners they have no jurisdiction over the energy companies at least that's what I was told. I do not think it will take 4 years in Shelby County, Center,Texas is a small town.      

Yes, I am aware that the state does not file on behalf of mineral owners.  That's probably good since they don't appear to be adept at handing out legal advise.  You have no guarantee of being heard in state district court.  CHK will move to transfer the case to federal court.  Simply getting a ruling on jurisdiction took that GHS member two plus years.

Did the title search turn up this deed that Chesapeake says exists?

The title search records show my brother and I with 19 acres with the legal description for our property and 19 acres for my relatives with a different  legal description for their 19 acres.  There is no recorded deed on record showing my brother and I conveyed our 19 acres of land to our relatives. Our land is a few feet away from the gas pipline however, Marathon made a mistake and installed the pipeline on my neighbors land several years ago. The P-12 filed by Chesapeake has our 19 acres being pooled into this well signed by Chris Spencer from Chesapeake. I spoke with an attorney with TRRC her advice was to hire an attorney and take them to court. Thanks for responding. 

Maggie,

Before I write my advice to you, let me say that I hate CHK as much as anyone on this site.  But, having said that.....

Hiring an attorney to write a demand letter likely won't help you, unless you are seriously willing to back it up by going to trial if CHK won't meet your demand.  Given that you own only 20 acres, I think going to trial is a no-starter.  Just getting started will cost around $50k.  

Let's also remember that CHK just laid off hundreds of employees.  It may be that some of those laid off were in their Owner Relations department, i.e., the people on the other end of the phone line.  So it may, indeed, be difficult to get (and keep) their attention focused on your issue.

So, if at first (or 2nd or 3rd) you don't succeed, try, try again.  It doesn't cost you to call them again, get the name, number, and email address of the person at the other end of the line, and tell them your problem.  Then, while you are on the phone, email that person the documentation that backs up your claim. (Have it all scanned in and ready to email, before you place the call.)  Don't let them hang up until they acknowledge receiving it.  And you can even go one step further, and walk through the documents with them while they are still on the phone.  Try this, and see what happens.

I realize this is painful and frustrating, but it is what one has to do.  I've never found the people on the other end of the line out to cheat me.  I do think they are very busy.  So you need to glom on to one person, and continue to work with him/her until you get to an understanding of the issue.

Finally -- be polite with them.  I know this may be hard, but if you go nasty or threaten, they will not be as easy to work with.

Good luck. 

Maggie--- before anything can be settled with CHK you first have to confirm Who owns the minerals. You say a relative has a claim to the minerals and there is a different legal description ? CHK I guess is paying them? You need a Title opinion from your attorney to start with before you can go any futher with this. Writting letters is fruitless without proving Title of Ownership

Adubu,

Title of ownership was provided to Chesapeake 9-17-13, Deed copy and plat. No relative of mine has tried claim to my mineral rights and they have not tried to claim any ownership. My attorney sent them documentation on 9-17-13 and as usual they have not responded. The state of Texas and other states are going to have to start tightening the loop holes on these crooks. According to my relatives they are not receiving any additional payments. Time will tell.

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