New Chesapeake Division Order Question

Chesapeake send me a new division order on a well that has been producing since 2010. Original decimal interest and acreage were 0.01047188 on 33.51 acres. The new division order states the total unit acres changed as the result of a unit survey plat from 640.0 to 650.596 acres. The result is a change of decimal interest and acreage to 0.01099515 and 35.767000 acres. I appears to me this result in an increase in royalty as a result of the new survey.  I read where other mineral owners have had royalties withheld as a result of surveys which reduce the decimal interest for the owner. Will Chesapeake reimburse me the difference retr0active to the date of the well completion? Will I have to make a written request.? Of course I have a call into them with no response.  The change goes into effect on November 1.

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Permalink Reply by Skip Peel - Mineral Consultant on October 24, 2015 at 7:20

HC is used as part of a well name to indicate a Cross Unit Lateral well.  HC literally stands for "Horizontal Cross".  With operators wishing to drill laterals longer than can be accommodated in the standard one section unit, the state regulators have approved drilling Cross Unit Lateral wells that may encompass all or portions of two or more units.

Permalink Reply by Suzan on October 25, 2015 at 5:36

Okay its still a mystery then. As far as Chesapeake's concerned see previous reply! Thanks for your input.

Permalink Reply by JTM on October 25, 2015 at 6:42

Thank you for all your responses. I have a better grasp of the situation from the various information that was provided. Chesapeake did finally return my call. The caller seemed a bit defensive  but did inform me I would be compensated retroactive to the well's beginning production. We will see if that rings true.

JTM

Permalink Reply by Judy McDaniel on October 25, 2015 at 8:50

Well those of us who are unfortunate enough to be leased to Chesapeake when they only have an operating interest in a unit are surely paying dearly for CHK's underpayments. CHK has taken over $2000 royalty from me this year with two four year negative "adjustments."  The first negative adjustment was not supported by the operator of the unit, QEP, and I have yet to receive an explanation for the second four year adjustment.  Chesapeake is nothing more than a bunch of cheap crooks.

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