Ms. Strojek, I suggest you seek other offers. You could even list your minerals at the bottom of the home page of this site to guage if there is any interest. I wouldn't miss any opportunities to let the landman know that you are shopping for a better deal either. Best wishes.
Melissa,
There has been a lot of water under the bridge since I posted this. Just recently I leased my minerals, again to Chesapeake, but my mineral manager did the negotiations. It's amazing the difference in the leases. I am very pleased with the lease itself, but Chesapeake is showing their bad side again. They agreed to pay me in 5 days. They did not and haven't paid me yet. It's been over 30 days now. I've had another offer and called the landman I leased from to tell him I would honor my word until this Wed.. If they haven't paid me by then I'm taking the other offer which was for more money as well. It's always nice to have another offer in the works. I hope you have a great day and a very Merry Christmas.
Yours,
Wes
Melissa
Chesapeake is also selling to Romac energy as well as Stoneridge energy llc both same company out of Hallsville Tx. Chesapeake signed a agreement in Oct of 2010 on 25,200 acres and tied it up. It has yet to be funded. Dave Bolton with chk and many others from same company like this practice. Then they are in hopes of getting it cheaper. Chk runs the prices up everywhere they go and pull the same game. Thus leaving the owners having to hire a attorney to get a release. You need to google and see the massive complaints as well as lawsuits. They have been found guilty of under payment of royalty once a well is in production. They lead the list of the worst company in the business of pushing people around. They are the wannabe's in the business since their massive billions in debt hold them back. I wish you the best of luck and happy holidays.
Wes Luke said:
Melissa,
There has been a lot of water under the bridge since I posted this. Just recently I leased my minerals, again to Chesapeake, but my mineral manager did the negotiations. It's amazing the difference in the leases. I am very pleased with the lease itself, but Chesapeake is showing their bad side again. They agreed to pay me in 5 days. They did not and haven't paid me yet. It's been over 30 days now. I've had another offer and called the landman I leased from to tell him I would honor my word until this Wed.. If they haven't paid me by then I'm taking the other offer which was for more money as well. It's always nice to have another offer in the works. I hope you have a great day and a very Merry Christmas.
Yours,
Wes
Roy,
Thanks for your input. You brought to light some things I would imagine CHK would rather wasn't known. I can't believe some of the things they pull. I don't know why a lot of states still let them operate there. : )
Yours,
Wes Luke
Wes
You are very welcome I have alot of insight as I used to run title for them. Also I know they use arrogance to push people around. And as for running price up that they do but in most cases do not close. I recall when Aubrey the CEO was forced to sell his stock because he could not make margin calls. So its a known fact they can't hang on to money and stockholders may soon suffer. Since a recent email from Dave Bolton to a landman exposed their breech of contract in North Dakota. They broker shop more often than the average person changes their socks. Sullivan Land was one of the first in ND area. But then when non payment is a issue they run under a different name. They are so ENRON like its not funny.
Thanks
Roy
Roy,
Yeah, and we all know how much we loved Enron. But, I won't be pushed by them again. When they told me to sign and return the leases on the last parcel I leased with them, I told them I would fax copies of the signed leases and when the check was ready I would trade the leases for the check. This Wednesday will be 32 days. They told me they would have me a check within 5 days. So, when a guy called and wanted to lease the minerals I told the landman he has until this Wed. to get me a check or I'm signing with the other company. I haven't heard a word from CHK so far. lol The other company is offering more bonus money and a check the next day. Actually, I hope CHK falls on their face with this one.
Yours,
Wes
Wes
More people need to send emails to the CFO of the company. And call their largest stock holders one of which is longleaf partners they have over 25 million shares alone. As well as file a complaint with the state in which this type action is taking place. Also file a complaint with the state of Oklahoma attorney general. Since they are in fact a Oklahoma corporation. So people are not unable to act as chk would like to think they are in these matters.
Thank you
Roy
Roy,
Excellent ideas. I'll see about finding email addresses for those folks. I'm not sure how to go about filing a complaint with the AG in OK. Maybe it can be done online, but I'll be surprised if I can. Thanks for all your input. Very good ideas and advice.
Yours,
Wes
Wes
There is another issues that both surface and mineral owners in ND need to know. Current law allows ANYONE without proof to file a claim on mineral or surface. And then the owner only has one remedy. They at their own expense have to file a lawsuit to clear their title. The Gov and AG office will do nothing as no laws are on the books. So lets say you put your house on the market and I want it but don't have the money. I could slander your title without cause until you either pay me or I get the money to purchase it. Sad but its the perfect set up for extortion and the state has done nothing to prevent it. State rep Shirley Meyers did introduce a law a few yrs back but it was voted down.
Anyone that owns such properties should be writing their state reps demanding this changes. Otherwise anyone can tie your property up for long periods of time. Which simply holds you hostage until you sue. The state attorneys there are worthless as they could defend such cases but don't want to spend their budgets to do it.
So just a heads up on how the state is 40 yrs behind the times. And every owner is at risk of such scams.
Thanks
Roy
Roy,
As much as I appreciate you I'd like you to delete this post. No need in giving people more ideas about how to screw ppl. Send me a PM and I'll give you my email addy. Have a great day!
Yours,
Wes
Wes
My intent is not to screw people rather just the opposite to make them aware to check the courthouse to prevent fraud. Make sure their property is in fact safe. I take offense to anyone who attempts to steal something.
Roy,
It's OK, I understand where you're coming from. : )
Yours,
Wes
Blanca Peak was probably working for Chesapeake ("CHK") and CHK is known for sending in swarms of marginally experienced brokers and upping prices in an area to ward off competition, and something known as cold drafting. DO NOT EVER GIVE OUT A LEASE THAT IS A 3 YR. TERM WITH A 3 YEAR RENEWAL........3 PLUS 2 IS OK IN SOME AREAS, NOT ALL. When a broker asks for a 2 yr "kicker"....make them agree to a bonus of 150% of what you originally negotiate. On the subject of using a sight draft....give them a max of 15 days period....or make them send you a check when you send them a copy of the executed ogl....then when you get paid, send them the original ogl.
Chesapeake Energy started this mess of inexperienced dupes doing their bidding for them...in the old days in the oil business, you could count on a landman's word.
Hi Andrew,
CHK lies about EVERYTHING!!! My last lease that involved them, they knew how I felt about them from my messages on the board. So, I told the landman that I would not send my lease to them until I had cash in hand. They actually promised to bring the check to my home and exchange it for the lease. Their deadline expired and no money. So, it rocked on for three more weeks (I think it was) and no money. That was when I got an offer from another company. Trying to do the right thing, I called the landman for CHK and gave him one more deadline, explaining I had another and better offer. I really think they thought I was bluffing. When the final deadline passed and not even a word from CHK, I leased for more money and a much better lease. Oh Happy Days! lol Nope, CHK gets no more of my business unless I'm forced to. I wish you much luck in your endeavors, and have a great day.
Yours,
Wes Luke
I will add to Andrew's comments:
1. Yes, Blanca Peak is a shell company working for Chesapeake. This is a proven fact. They are all bad news; this is legal being determined as we speak!
2. regarding the lease renewal term - DO NOT ACCEPT ONE! Or include a renew term at 150% (as Andrew suggests) by do not make it an option. Write the lease with a 2 year mandatory kicker - not an option. Be assured that if the renewal term is an option then the gasco will agree to renew if the price is below market and if it is above market they will walk. the landowner has no assurance. So, either no option or a mandatory renewal.
3. regarding the sight draft - I have made several recent comments on this; under no condition accept one; there are risks associated and you may not get paid. Cash = simple, you are paid. demand cashiers check.
F. Andrew grooms said:
Blanca Peak was probably working for Chesapeake ("CHK") and CHK is known for sending in swarms of marginally experienced brokers and upping prices in an area to ward off competition, and something known as cold drafting. DO NOT EVER GIVE OUT A LEASE THAT IS A 3 YR. TERM WITH A 3 YEAR RENEWAL........3 PLUS 2 IS OK IN SOME AREAS, NOT ALL. When a broker asks for a 2 yr "kicker"....make them agree to a bonus of 150% of what you originally negotiate. On the subject of using a sight draft....give them a max of 15 days period....or make them send you a check when you send them a copy of the executed ogl....then when you get paid, send them the original ogl.
Chesapeake Energy started this mess of inexperienced dupes doing their bidding for them...in the old days in the oil business, you could count on a landman's word.
I AGREE with Wes wholeheartedly! CHK shells and landmen (smoke and mirrors) leased on CHK behalf in MI. They did not pay over a 1000 leases and canceled them for all kinds of bogus reasons that wouldn't hold up to industry standard definition of title defect. I want to emphasize that all other leasing companies/gascos paid in Michigan. However, the mass extraction of CHK from MI caused a collapse in the play and market value causing lease values to fall from $3,000/ac to $30 almost overnight. Yet a wildcat well, by Encana, produced about 3MMCFPD natgas and was shut-in at 1.3MMCFPD; so definitely not really a dead play.
Many landowners are now suing CHK in Michigan. Over the past 2 years I have been researching the gas industry and in particular CHK. Just google CHK and you'll see problems and lawsuits all over the nation.
I too would recommend staying clear of them.
Wilson
Wes Luke said:
Hi Andrew,
CHK lies about EVERYTHING!!! My last lease that involved them, they knew how I felt about them from my messages on the board. So, I told the landman that I would not send my lease to them until I had cash in hand. They actually promised to bring the check to my home and exchange it for the lease. Their deadline expired and no money. So, it rocked on for three more weeks (I think it was) and no money. That was when I got an offer from another company. Trying to do the right thing, I called the landman for CHK and gave him one more deadline, explaining I had another and better offer. I really think they thought I was bluffing. When the final deadline passed and not even a word from CHK, I leased for more money and a much better lease. Oh Happy Days! lol Nope, CHK gets no more of my business unless I'm forced to. I wish you much luck in your endeavors, and have a great day.
Yours,
Wes Luke
Andrew,
You are absolutely right. If you send an OGL signed and notarized, you won't hear from them for at least 90 days no matter what they promised you. If liars go to hell, then I don't know of one person with CHK that stands a chance at Heaven. : )
Yours,
Wes Luke
There are some options should you not get paid you might take. Send the company which of course is leasing for chesapeake a cease and desist letter. Then file a copy of it at the court house as a public notice. As for the excuse land men should never take more than they can run title on at any given time. However with the case of this company I suspect its a premeditated scheme to keep it tied up. Then if and when chesapeake decides if they want it after all. From the looks of their stock prices today it does not look good.
Always refuse anything beyond a 30 day draft! And even add a addendum stating 30 day pay or its null & void.
Roy
Of course, I agree with Mr. Williams. If a lawyer represents himself, he has a fool for a client. Same can be said of many landowners.
After having been a Landman in all capacities for over 30 years now (ie. first as a courthouse record checker, then as a broker, then 17 years as an Operating Company Landman and now simply managing what we own) I have definite opinions on how the BONUS payment matter needs to be handled. The field brokers working in the courthouses and motel rooms etc. are guys out there trying to make a living. We have a lot of youngins out there now who simply do not have the experience that some of the older pros do. I get calls every week as I manage substantial mineral interests in 8 producing states. Some of the younger Landmen have not had the time they need to learn to live by strict ethics due to the booming pace of the industry at this time.
MOST LEASE BROKERAGE COMPANIES ARE WORKING UNDER THE DIRECT ORDERS OF THE COMPANY CLIENTS THEY HAVE. NONETHELESS, THE BROKERS NEED TO DEMAND THAT THEIR CLIENTS BEHAVE ABOVE BOARD AND ADHERE TO LONG ESTABLISHED PRINCIPALS THAT MOST LANDMEN HAVE LIVED BY FOR YEARS AND YEARS.
IT IS REALLY IMPORTANT TO KNOW THAT OUR DOMESTIC OIL AND GAS INDUSTRY CANNOT SURVIVE WITHOUT THE SERVICES OF THESE FIELD BROKERS, THEY ARE IMPORTANT PLAYERS IN THE FABRIC OF THE DOMESTIC E&P INDUSTRY. THE BY WORD IS THIS.....THE AVERAGE MINERAL OWNER NEEDS TO TRULY LEARN AND UNDERSTAND HIS OR HER ASSET. KNOWLEDGE IS POWER.....KNOWLEDGE IS KEY TO SUCCESS IN ANY NEGOTIATION.
My process is that when I negotiate a lease with a broker who calls, that once the terms are agreed upon, we will execute the lease form as negotiated, I will send the broker a COPY ONLY of the executed lease and will send them our W-9 form, I tell them in writing, I will give them 15 days maximum to send a CHECK for the amount due......at that time, I will then (and only then) mail them or Fed Ex them the original fully executed lease. I explain in WRITING, that if we are not paid in the said 15 day time frame, THAT THE TRADE IS DEAD AND NULL AND VOID. I make exceptions to this rule if I have extensive experience with the buying broker or the company he or she is buying for. Sometimes I will give 20 days....but no more....PERIOD. I will not sign a brokers draft no matter who it is from.....and when they tell me that it is "subject to approval of title", I tell them........."go do the title exam first, then call me back and if the lease is still available, then we will talk but don't call me until you have your homework done first".
The subject of "Cold Drafting" is deplorable and un acceptable.....no Landman who gives a damn about his or her reputation would ever work for anyone who would even condone such a thing. THE CURRENT PROBLEM WITH THIS ISSUE HAS BEEN MASSIVELY PROPAGATED BY AN OKLAHOMA CITY OIL COMPANY WE ALL KNOW ABOUT AND I HOPE THEY GET THEIR ASSES SUED BECAUSE OF THE MUD THEY HAVE CAUSED TO BE THROWN ON ALL US WHO CONDUCT OUR BUSINESS ABOVE BOARD AT ALL TIMES. I personally plan on writing the President of the American Association of Professional Landmen about taking a stance on this matter immediately.