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Permalink Reply by jffree1 on June 1, 2018 at 3:42

This statute has not been changed recently, to my knowledge. It is more likely (just guessing here) that CHK is in the middle of selling part or all of that production to another operator and did not want to say that so they blew some smoke at you.

See https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm a little over halfway down the page. There are conditions under which they can suspend payments so you might want to read further than what I posted here.

Sec. 91.402. TIME FOR PAYMENT OF PROCEEDS. (a) The proceeds derived from the sale of oil or gas production from an oil or gas well located in this state must be paid to each payee by payor on or before 120 days after the end of the month of first sale of production from the well. After that time, payments must be made to each payee on a timely basis according to the frequency of payment specified in a lease or other written agreement between payee and payor. If the lease or other agreement does not specify the time for payment, subsequent proceeds must be paid no later than:

(1) 60 days after the end of the calendar month in which subsequent oil production is sold; or

(2) 90 days after the end of the calendar month in which subsequent gas production is sold.

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Permalink Reply by True Texan on June 1, 2018 at 8:18

Hello Jiffree,  Thanks for that info.  

I went back to the lease and there is no time specified for payment.  The division orders say - If less then $100 is accrued they can pay when it reaches that amount or annually if it's less then $100.   I checked the payment stubs and looked for when production was for oil and gas, and when the checks were sent.  They had already been following the letter of the law by paying for the oil 60 days and the gas 90 days after the sale.  

I don't see how Chesapeake thinks they can all of a sudden stop paying people their monthly royalties without a warning.   I'm going to call them again on Monday and set them straight.  Not right that their Rep. lies to their royalty owners and blames non payment on the State of Texas changing their tax laws when that is not the case.   

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Permalink Reply by Bob Zimmerman on June 1, 2018 at 10:16

<I don't see how Chesapeake thinks they can all of a sudden stop paying people their monthly royalties without a warning>>>

He in the oilfield who gets his hands on the production proceeds first may be reluctant to give any of it up, and will have an endless line of BS to that effect. 

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Permalink Reply by jffree1 on June 2, 2018 at 3:09

You're welcome.

Here is an interesting piece on CHK from 2016 concerning your neighborhood.

Eagle Ford Shale ranchers sue Chesapeake Energy over royalty payments

Mineral owners aim for energy company

 

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