Looking back on some of the post on the subject. It sounds like the Lease broker and their landmen probably made a lot of mistakes, which is not unusual. Then the "in house" land and legal staff also did too. Then their land department tried to "flim-flam" you and the other surface and mineral-royalty owners! It happens all the time, especially with certain companies.
Diane,
Even if what CHK says is true, you should strongly consider consulting an attorney who specializes in oil and gas about the matter. Even if what they're trying to recover isn't enough to justify the cost of a consultation, the future royalties they will no longer pay may be. That issue is complicated enough to leave considerable room for error.
Get them to reply "in writing" with a full and complete explanation along with the horizontal unit plats along with the drillsite on the plat or plat's. Get them to show you on the plats where your royalty interest are in relation to the unit that they paid you royalties on.
They apparently made multiple mistakes and are trying to cover it up from their superiors. I have seen it a lot of times from lease brokers trying to keep the company that hired them learning their mistakes.
If you got 6 figures on royalty payments then you can afford to consult a good oil and gas attorney. One thing to remember is that in a lot of cases the attorney you might consider consulting may also do work for the company and may hope to in the future. Be very careful. I would not get an attorney in Corzzio Springs as they are probably employed by the company.
Thanks, I live in Austin and all of the attorney's here are corporate, not sure where to find a good one? I so agree, I think they are covering something up. It is being handled very strangely!
Just that they want their money back and have suspended payments to us. I have contacted an attorney, based on recommendations from friends in the oil business who think we have a good case. I'm waiting to hear back from the attorney....
Yes, it is unbelievable!
Ask Shell why did they buy Chesapeakes Interest in the first place if the title was incorrect? I still believe that if they have not sent you certified letters stating details it's a "scam" and scare tactic by the lease brokers! It's hard for anyone to give advice if they don't know all or most of the facts. Landmen are on Landmen's side, not yours. A lot of Landmen and Oil companies think that the minerals belong to them and you should do what ever they say.
I fail to believe that Shell would be "dumb" enough to believe anything coming from Chesapeake!
What does a lease broker have to do with anything? It says in Diane's original question that a Chesapeake landman's secretary contacted her wanting royalty payments back. A secretary isn't a lease broker.
I've never heard of a landman or oil company who thought that the minerals belonged to them. The whole premise of the business is to determine who the record mineral owner is and make an offer to lease. If they thought that the minerals belonged to them, they would just skip that step and put a drilling rig out there without acquiring a lease.
What would you advise? Just get a phone call from someone you have never talked to or heard from and do what they say? Hey Dave, send me about $90,000 dollar's!
Dave Quincy said:
What does a lease broker have to do with anything? It says in Diane's original question that a Chesapeake landman's secretary contacted her wanting royalty payments back. A secretary isn't a lease broker.
I've never heard of a landman or oil company who thought that the minerals belonged to them. The whole premise of the business is to determine who the record mineral owner is and make an offer to lease. If they thought that the minerals belonged to them, they would just skip that step and put a drilling rig out there without acquiring a lease.
so, whatever happened with the demand? Just wondering.