Terrel L. Shields
Elite Member
- Joined
- May 2, 2002
- Professional Status
- Certified General Appraiser
- State
- Arkansas
http://powersource.post-gazette.com...-Pennsylvania-Chesapeake/stories/201704230084
At times the gas prices are so low and the post-production costs are so high that the drilling companies stop sending checks at all. Instead, upon request, they provide their landowner partners with statements that reveal a negative balance — meaning the costs of moving and marketing the gas that month were more than the money made selling it.
“So you know there’s thousands of people out there in this situation,” said Jackie Root, president of the Pennsylvania chapter of the National Association of Royalty Owners. “It is not something here and there. There are people that have accrued those negatives into tens, hundreds of thousands, and over a million dollars.”
Predominately this is a story about Chesapeake Energy. I am personal friends with Jackie... well said. And you thought a royalty meant a portion of the proceeds without expenses... that's a very old English Law view apparently...“So you know there’s thousands of people out there in this situation,” said Jackie Root, president of the Pennsylvania chapter of the National Association of Royalty Owners. “It is not something here and there. There are people that have accrued those negatives into tens, hundreds of thousands, and over a million dollars.”