I've never liked or trusted Chesapeake. Here is an example of how they operate that was in the Tulsa World.
Victor,
Chesapeake is one of the worst companies that I have dealt with and I have dealt with a lot of good and bad companies. We leased our land for 25% and no deduction. When I got my first check off of one well it has 3 different decimal of payment. I called and they couldn't answer the first time. I wrote a letter and they did finally call back after a month and said that the W I owners were from a foreign country and they sold their own gas and oil. When the 2nd well was drilled, the new pay check now has 6 different decimals, but they can't tell me why. DFW airport sued and won, Ft. Worth city and Arlington, sued and won. But, unless you have lots of land, you can't afford to sue oil companies as it's about a 2 year deal at best. So, they just keep taking advantage of the little people and mineral owners. They all need to go to jail and stay there.
I've dealt with oil & gas companies for almost 40 years and I have never seen any other company operate like Chesapeake.
Victor,
I can't believe our government can't do something about Chesapeake stealing from the mineral owners.
I would be in jail with the key thrown away if I did half what they have done.
Tom and Aubrey formed Chesapeake back in 1989' when greed had spread like wild fire, because geologists found hydrocarbons were trapped in the shale and every one was trying to get to it. Due to Penn Square's collapse US banks wouldn't lend money and there was no regulation of private o/g investments. US and foreign investors hoping to get rich quick lost a lot of money when high speculation o/g deals went bankrupt. Many Oklahoma energy companies did everything they could, (wrong or right) to stay in business and that set the tone at Chesapeake, but when times changed, they didn't.
Martha, once they started doing things in the manner that they now have, they can't go back. To revert to the old way of calculating royalty would practically be an admission that they were stealing before. I would expect that is is still profitable because so many mineral owners have not been paying attention and still are not negotiating their lease and are helpless to do anything legally after the fact. For those that did negotiate their leases and are not helpless after the fact, the lawsuits cost Chesapeake less than they rake in so it is just the cost of doing business, like Ford Motor Co. and the Pinto, the lawsuits are less expensive than the recall and modification of the cars.
R W ,
You have that right. The cost of a law suit is a lot larger than most people will get from Oil & gas in a life time unless a person owns enough land that they can afford to do something. So, the oil companies can just run over all the little mineral owners, plus most small mineral owners are so greedy they don't want to rock the boat, just sent them the checks. People who have 10 A thinks they are going to be million, I would like to meet the person with 10 A that got to be a million from oil/gas. It may help their life style a few hundred per month, but that is all. I love the way land men sent my leases to be considered. They put a copy of the check for bonus, then the bad lease behind it. When I call them they say, did you see the check like I may lost it if I don't sign their lease.
RW and Virginia, I agree, Chesapeake is never going to 'self correct' and it's bad when mineral owners do not pay attention to their mineral interests, because they are just welcoming thievery. Still, robbery is a crime no matter how it comes about or what is stolen.
I hate to sound naive. But where is chesapeake operating now. I have a friend who just signed up with them.
Chesapeake operates in many different fields. Here's some info.
http://www.chk.com/Investors/Documents/Latest_IR_Presentation.pdf