CHESAPEAKE: HOW DO I CHEAT THEE? LET ME COUNT THE WAYS
I recently sold my mineral rights and during the time that I will call the "discovery" period to verify the veracity of my ownership it came to light that Chesapeake has been underpaying me for PRODUCTION since at least 2019 (because they made a bulk payment from 2019 to the present).. Now Chesapeake has cheated me in a number of ways but this, I think, hits an all time low.
Also, during this discovery time I discovered, because of my ignorance, that PXP (who shared my original lease agreement for 20% of my royalty interest and who was acquired by Chesapeake) sold what I believe is 10% of my 25% to someone back in 2018 that never acknowledged this assignment and thus has never paid me for my royalty interest. I recently received a letter from Black Falcon Energy that said they MAY owe me some money. They want me to confirm that I am an interest owner and provide them with my tax withholding info (including my social security number). I don't know who Black Falcon is and I haven't yet responded to them. So, my question is do any of you know anything about Black Falcon...they say they are an agent for Larchmont Resources and Jamestown Resources, who I also know nothing about. And, what would you advise I should do about royalty interest I never received?
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Replies to This Discussion
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Permalink Reply by Skip Peel - Mineral Consultant on -
Black Falcon Energy is a Texas registered corporation. I'm not familiar with the company.
BLACK FALCON ENERGY, LLC
32057705413
717 TEXAS ST STE 3100 HOUSTON, TX 77002-2816
ACTIVE
DE
07/06/2015
0802247604
C T CORPORATION SYSTEM
1999 BRYAN ST., STE. 900 DALLAS, TX 75201
Plains acquired an interest in Chesapeakes's Haynesville leases early in the play. Plains was sold to Freeport-McMoran, not Chseapeake.
Plains Exploration & Production was a petroleum and natural gas exploration company based in Houston, Texas. In May 2013, it was acquired by Freeport-McMoRan.
Both Larchmont and Jamestown were corporations created by Aubrey McClendon while he was still CEO of Chesapeake. He had a 2 1/2% interest in many, if not all, Chesapeake wells and he held those stakes in Larchmont and Jamestown. The companies still exist as indicated by their Louisiana corporate registrations.
LARCHMONT RESOURCES, L.L.C. Limited Liability Company (Non-Louisiana) OKLAHOMA CITY Active Previous Names Business: LARCHMONT RESOURCES, L.L.C. Charter Number: 40397670Q Registration Date: 1/11/2011 Domicile Address 6100 N WESTERN AVE OKLAHOMA CITY, OK 73118 Mailing Address 717 TEXAS AVENUE SUITE 3100 HOUSTON, TX 77002 Principal Business Office 717 TEXAS AVENUE SUITE 3100 HOUSTON, TX 77002 Registered Office in Louisiana 3867 PLAZA TOWER DR. BATON ROUGE, LA 70816 Principal Business Establishment in Louisiana 501 LOUISIANA AVE BATON ROUGE, LA 70802 Status Status: Active Annual Report Status: In Good Standing Qualified: 1/11/2011 Last Report Filed: 12/30/2020 Type: Limited Liability Company (Non-Louisiana) Registered Agent(s) Agent: C T CORPORATION SYSTEM Address 1: 3867 PLAZA TOWER DR. City, State, Zip: BATON ROUGE, LA 70816 Appointment Date: 2/5/2016 Officer(s) Additional Officers: No Officer: LARCHMONT INTERMEDIATE HOLDCO, L.L.C Title: Member Address 1: 717 TEXAS AVENUE Address 2: SUITE 3100 City, State, Zip: HOUSTON, TX 77002 Officer: RICHARD K. II PUNCHES Title: Manager Address 1: 717 TEXAS AVENUE Address 2: SUITE 3100 City, State, Zip: HOUSTON, TX 77002 Officer: BRIAN SHANNON Title: Manager Address 1: 717 TEXAS AVENUE Address 2: SUITE 3100 City, State, Zip: HOUSTON, TX 77002 JAMESTOWN RESOURCES, L.L.C. Limited Liability Company (Non-Louisiana) OKLAHOMA CITY Active Previous Names Business: JAMESTOWN RESOURCES, L.L.C. Charter Number: 40407134Q Registration Date: 1/21/2011 Domicile Address 6100 N. WESTERN AVE. OKLAHOMA CITY, OK 73118 Mailing Address 717 TEXAS AVENUE SUITE 3100 HOUSTON, TX 77002 Principal Business Office 717 TEXAS AVENUE SUITE 3100 HOUSTON, TX 77002 Registered Office in Louisiana 3867 PLAZA TOWER DR. BATON ROUGE, LA 70816 Principal Business Establishment in Louisiana 501 LOUISIANA AVENUE BATON ROUGE, LA 70802 Status Status: Active Annual Report Status: In Good Standing Qualified: 1/21/2011 Last Report Filed: 1/5/2021 Type: Limited Liability Company (Non-Louisiana) Registered Agent(s) Agent: C T CORPORATION SYSTEM Address 1: 3867 PLAZA TOWER DR. City, State, Zip: BATON ROUGE, LA 70816 Appointment Date: 2/5/2016 Officer(s) Additional Officers: No Officer: EIG ENERGY FUND XV, L.P. Title: Member Address 1: 717 TEXAS AVE., SUITE 3100 City, State, Zip: HOUSTON, TX 77002
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Permalink Reply by Judy McDaniel on
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Skip, thank you so much for your reply. You are so helpful. Yes, I did know that PXP sold their interest to Freeport-McMoran only because Freeport promptly sent division orders to me and started paying royalty interest to me. However, at some point Freeport sold (or traded, however these deals are handled) their interest back to Chesapeake (this is an assumption on my part due to the fact that Chesapeake increased my interest) because a Freeport Rep told me they did not like the way Chesapeake did business. So, if Aubrey McClendon retained 2-1/2% interest in Chesapeake wells, Who was supposed to pay lessors their portion of this production? I just know at this point I have not be paid 25% royalty since production started. According to my calculations I am only being paid 15%.
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Permalink Reply by Skip Peel - Mineral Consultant on
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Your welcome, Judy. Over time CHK sold off portions of their Haynesville Shale leasehold to multiple operating companies. I'm sorry to hear that they kept your section. I suspect that CHK paid Aubrey's portion of the royalty burden until sometime after his death. CHK was sued by Larchmont and maybe by Jamestown shortly after that happened. If memory serves one or both entities were pushing CHK to drill more wells for which Aubrey had the 2 1/2% interest at a time that CHK had transitioned to acquiring and drilling oil reserves. I do not know how that turned out or how the bankruptcy may have affected the legal relationship.
Do you have no cost royalty language in your lease?
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