The ONLY national organization representing, solely and without compromise, oil & gas royalty owners interests.

Bank Draft v. Obligation to Pay

  • 04/18/2012 3:30 PM
    Message # 892635
    Anonymous

    Someone has reported to me that Chesapeake is providing an "obligation to pay" letter instead of a bank draft when getting your signature on a lease. Personally, I would not sign any lease for either one...once signed your lease is a legal document.

     

    By not taking the election to go ahead and pay, then you may be faced with going to court to get the lease revoked or quit claimed. 

     

    I do not know all the implications of an "obligation to pay" or even if it is a legal instrument that can be enforced. I do know that with $2 gas prices, I wouldn't want to touch Chesapeake with a 10 foot pole and after the revelation that CHK "loaned" A. McClendon a BILLION plus dollars so he could participate in wells?  say what???

    http://www.lasvegassun.com/news/2012/apr/18/us-chesapeake-energy-mover/

    I just never liked the way this company operates, not even back in the early 90s' when Aubrey was known as a "docket jumper" for trying to lease small unleased interests that were being pooled by the OCC - I ain't about to take a letter promise to pay that isn't worth the paper its written on.

  • 05/10/2012 10:52 AM
    Reply # 916645 on 892635
    Anonymous
    Along those lines, I have received a check from Chesapeake, with the upper two thirds of the voucher reading "Lease Obligation Deposit Receipt".  It looks like a bonus check, it's a check not a bank draft, but it is asking that the stub be signed and returned.  I've not come across something like this, and wanted to know if it was common?
© Copyright 2011-2014 National Association of Royalty Owners
Like Us on Facebook   Follow Us on Twitter
Home / News / Events / Resources / About NARO / Join / Contact / Donate / Message Board
Powered by Wild Apricot Membership Software