Understanding an unleased mineral owner well report from Chesapeake

My investors finally got put in as unleased mineral owners on 5 wells in one section with Chesapeake. They get their first check this week ( after owning the property 20 months). First check has 10 spots and each say January 2019 Cutback and an amt. They get the total of the amount which is certainly no where near what they are due. A day later they get a copy of well EXPENSES but not well production but we can look that up on Sonris. The only thing the report says is PERIOD 1. It doesn't have ANY dates. I have been in touch with their legal dept. and they don't know what it means. Said they have to wait until revenue tells them. Has anyone experienced this. Does anyone know how Chesapeake defines Periods 1, 2 etc without any chronological data.

Views: 1189

▶ Reply to This

Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on March 15, 2019 at 6:46

Welcome, Robert.  Your advice is spot on.  Thank you.  In my experience,  a demand letter originating from a mineral owner is more often than not ignored here in LA even if properly written and sent.  A demand letter from an O&G law firm known for litigating is viewed differently.  Although the cost to have an attorney send a demand letter is pretty modest, the good ones will decline to send a letter if a client does not commit to follow up with a suit if the demand is ignored.  Firms with a reputation of bringing good suits are viewed differently by operating companies than those that fail to litigate.

Permalink Reply by Robert mcintyre on March 15, 2019 at 7:35

yes.  It really leaves the small owner with few choices.  There has been some success with lessors and royalties through class action firms, but nothing that I am aware of in the forced pooling/cost area.  Thanks for your comment.

Permalink Reply by kittycatmama on March 15, 2019 at 14:38

Thank you for your reply and for you info, Robert.

RSS

Support GoHaynesvilleShale.com

Top Content 

1 "Rebalancing Volumes"

"Rebalancing Volumes"
2 BPX hits it out of the park with 3 Bossier Parish CULs

BPX hits it out of the park with 3 Bossier Parish CULs
3 Haynesville Fairway could support drilling into the 2050s?

Haynesville Fairway could support drilling into the 2050s?
4 Lithium Brine Lease letter from Red Oak East, LLC - Location Cass County, TX, near Naples, TX

Lithium Brine Lease letter from Red Oak East, LLC - Location Cass County, TX, near Naples, TX
5 Texas Smackover Lithium Play

Texas Smackover Lithium Play
6 Tariffs, Financial Uncertainty Complicate Data Center Development

Tariffs, Financial Uncertainty Complicate Data Center Development
7 Seller Beware!!! How Mineral Companies Work Together.

Seller Beware!!! How Mineral Companies Work Together.

Blog Posts

Tuscaloosa Trend Sits On Top Of Poorest Neighbourhood For Decades - Yet No Royalties Ever Paid To The Community -- Why??

In researching the decades-old Tuscaloosa Trend and the immense wealth it has generated for many, I find it deeply troubling that this resource-rich formation runs directly beneath one of the poorest communities in North Baton Rouge—near Southern University, Louisiana—yet neither the university ( that I am aware of)  nor local residents appear to have received any compensation for the minerals extracted from their land.

This area has suffered immense environmental degradation…

Continue

Posted by Char on May 29, 2025 at 14:42

Not a member? Get our email.

Groups



© 2025   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service