Thread regarding Chesapeake Energy Corp. layoffs

Land guy out of Dallas sent this to DOJ... the TRUTH!

Subject: Land guy out of Dallas sent this to DOJ. This is the truth

To Whom it May Concern:

As someone who competed against both Chesapeake Energy Inc. and the unnamed 2nd company in the "bidding" and purchasing of oil and gas leasehold in Northwest Oklahoma from 2010-2012, I was astonished to read the frivolous drivel that your office produced and released as an indictment of Aubrey K. McClendon yesterday. As a matter of full disclosure, I have never met Mr. McClendon, worked for Chesapeake or any other entity run by Mr. McClendon, nor have I ever received any direct compensation or revenue from him or such entity. However, I am quite knowledgeable in the subject matter at hand, and do know your accusations to be absurdly false in their nature.

Chesapeake Energy Inc. with Mr. McClendon at the helm was the most notorious company in the industry for doing the exact opposite of what your misinformed indictment claimed. You could have legitimately interviewed any and every employee of an oil and gas company in the lower 48 that dealt with oil and gas leasing between 2007 & 2012 and every one of them would have told you Chesapeake and Mr. McClendon's problem was not price fixing, but over paying mineral owners. It appears you chose to believe the opinions of some politicians rather than the facts, and proceeded with your blinders on throughout the process.

In almost every basin that's ever produced commercial quantities of oil and gas in the lower 48 (and some that hadn't yet), Mr. McClendon led the charge to aggressively acquire leasehold for horizontal development in a manner in which he was more often than not, the sole reason for prices being driven up for mineral and land owners. Indicting this man for artificially depressing prices is akin to claiming the Cookie Monster has been on a diet all along.

Mr. McClendon was solely responsible for his company paying out tens of billions of dollars in windfall bonuses and royalties to mineral owners who historically had been low balled by the handful of incumbent mom and pop conventional vertical drillers that operated in each county, who had grown accustomed to paying between $5-100/acre and 1/8th royalties on 5 year terms for leases since the beginning of our industry. If a rumor started circulating that Chesapeake might be interested in purchasing leasehold in a county, lease prices often surged by 200-300% within weeks. I saw this first hand from speaking and negotiating with mineral owners in four counties in NW Louisiana, two counties in Southeast Colorado, three counties in Northwest Oklahoma and three counties in Southern Kansas over the last 9 years.

The conclusions reached by your ludicrous indictment proves that your entire office either lacks the most elementary understanding of the oil and gas industry and the legal/financial implications of an oil and gas lease, OR lacks the smallest morsel of moral aptitude and conscious. I speculate that it's a heavy dose of both, but I'm sure you were comforted by a nice pat on the back for falling in line and conducting this political witch hunt that was handed down to you by your superiors.

The most pressing issue at hand is that the specific claims in your release defy the reality of why a mineral owner would sign an oil and gas lease. First of all, there's no formal bidding process for acquiring and oil and gas lease from an individual mineral owner and therefore is absolutely never a legally binding timeline in which someone has to make a decision to sign a lease at certain prices or be forced to take the highest offer being bid that day, week, month year or decade. So your claims that somehow Mr. McClendon, who lead Chesapeake through the acquisition of over 14 million acres of leasehold in this time frame, was capable of micromanaging individual lease negotiations across an entire play that consisted of tens of thousands of leases being filed every year is beyond laughable. And to have orchestrated a conspiracy in which Chesapeake and another company (clearly Sandridge) would have been able to shelter these mineral owners from speaking to other companies in order to obtain lease prices for under what some of the other groups in the area were leasing for is borderline insane.

Which leads me to your next far fetched assumption, that over a 3 million acre play that spanned 7 counties in Oklahoma, there were only two companies capable of bidding on and creating a market for oil and gas leases. Maybe someday UNICEF will get into the business of making idiotic claims based off of moronic assumptions, but until then, I think the DOJ is my guy. A quick search of the smallest geographic county in the play in Northwest Oklahoma (Alfalfa), shows that no less than 74 separate entities purchased and filed leases in the county over the time frame that you've alleged (see attached). There were certainly more companies that offered bids to lease certain mineral owners, but who's offer was lower than this "artificially" low price you claim CHK induced on the market and therefore weren't able to purchase anything. I'll offer myself as an example as someone that bid on over 25 leases in Alfalfa but ultimately wasn't able to find anyone to lease to me at the terms I was offering. Their main reasoning? CHK and others had already offered them better terms that they were either going to accept or more commonly, they were going to hold out for better terms.

There are several more blaring examples of mental ineptitude that your office has put on display in this indictment that even a neophyte of our industry could highlight, but I don't have time for here.

You should be utterly ashamed at this sloppy politicized hit job on a creator of tens of thousands of jobs, a pillar of the Oklahoma City community and a thankless philanthropist. To anyone who cared about the facts, his only crime throughout his career was OVERPAYING mineral owners, in the hopes of being able to lead a team of scientists, engineers and land professionals in an effort to innovate new technology to efficiently provide our nations mineral owners (who you certainly have never met with from your offices in Chicago) with steady royalty income streams and the American public with cheap energy.

Your office has blood on your hands after today's horrific news.

Thank you for your time in reading this message if you've made it thus far, but certainly not for the disservice that you've done the justice system and Mr. McClendon's family.

William Francis

Dallas, Texas

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Post ID: @Gf2gs1q

53 replies (most recent on top)

50k views, amazing

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Post ID: @Gf2gs1q-7wpyl

Thank you for a very informative commentary. As I have witnessed time and again, the state of OK seems to prefer the " arse backward" approach to most everything. My deepest condolences to friends and family of Mr. McLendon. May he R I P.

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Post ID: @Gf2gs1q-ieqe

NAMNARF FROM THE TOP ROPE!

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Post ID: @Gf2gs1q-6ogu

RIP

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Post ID: @Gf2gs1q-5skd

Let's get back to what this site is for - CHK layoffs! (Aubrey lovers go shed a tear, eat at Pops, turn on your dim lights, plant some tulips, drink a magnum, toast a marshmallow BUT please get off here!)

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Post ID: @Gf2gs1q-4ias

Geez there's some stupid people that Have posted on this. You guys watch too much paranoia TV.

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Post ID: @Gf2gs1q-4wli

I don't think you folks truly understand what this is all about. It simply is an avenue for this administration to take out some of the biggest icons in the Oil & Gas industry, an industry they despise and have sworn to destroy and replace with so called "clean" energy alternatives. What better way to do this than to create an accusation and then have your comrades in government agencies and the lapdog media proceed to attack, threaten, libel, and propagandize to the point of pure idiocy. We all know that the royalties that Chesapeake paid to the mineral owners was well above average. It can't be disputed, it's FACT. But an out of control government hell bent on destroying an industry doesn't care about facts. This administration has blood on it's hands.

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Post ID: @Gf2gs1q-3acz

Please share this post, 3700 shares on Facebook so far!

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Post ID: @Gf2gs1q-3fiy

One more example of what Big Government thinks it can get away with. The same people determine who gets indited, Aubry, and who doesn't, Hillary. Whose actions were the most heinous?

This from a fellow competitor in the O&G industry who has no reason to support Aubrey.

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Post ID: @Gf2gs1q-3wds

Tom Ward and others who cooperated with DOJ are the real persons who have blood on their hands. Why was only Aubrey targeted? One single person... no other big companies. Hell step out of the O&G industry.... Google, Warren Buffett... yadda yadda. It's business folks. Go Big or go home. The business mafia is what it is.

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Post ID: @Gf2gs1q-3edx

A flamed engulfed SUV? Why didn't I think of that 20 years ago!

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Post ID: @Gf2gs1q-3xqv

How does one prosecute an anti-trust case against two companies purportedly conspiring with each other when there were dozens of other competitors vying for the same minerals at the same time?

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Post ID: @Gf2gs1q-3asb

Please share this post on Facebook! We have over 3,300 shares now and everyone needs to see this!!!!

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Post ID: @Gf2gs1q-3gbi

Had call on the Chesapeak oil cop. To buy my mineral rights. Wanted to sell, but was told three weeks ago that tge y were not buying any mineral properties. So am looking for a buyer of my 5.3467 acers in Alfalfa county Oklahoma.

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Post ID: @Gf2gs1q-3jxn

It would seem as though there are people in our govt. that would like nothing better than to destroy our way of life; oil industry attacks have always been lurking in the shadows. The same thing in coal mining electrical power etc. yes a very fine man was viciously attacked very falsely accused of wrong doing. RIP Aubrey we all realize the real truth- that you were falsely accused.

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Post ID: @Gf2gs1q-2qbj

It is always the good the kind and successful that those with out those qualities attack.

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Post ID: @Gf2gs1q-2kxt

That's right, share this fake BS on Facebook with all of the other BS out there. Be sure to tell everybody that Abe Lincoln approves of this message too. Idiots!

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Post ID: @Gf2gs1q-2irq

Once again .....Thw DOJ prosecutes a private citizen for making a living....BUT HILLARY WALKS FREE...OBAMMIE IS GUILTY OF TREASON AND NOTHING HAPPENS...ITS CALLED SELECTIVE ENFORCEMENT...NO CLASS PLAY..

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Post ID: @Gf2gs1q-2ayd

HA HA!!! Fake as frack!

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Post ID: @Gf2gs1q-2fjo

Please let's not try to make a SAINT out of someone who clearly WASNT!

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Post ID: @Gf2gs1q-2rsq

My reply isn't regarding CHK nor Mr. McClendon, but the industry. I'm merely gathering information. My interests are in Kingfisher County, Sooner Middle Layton Trend and were passed on from my grandparents. So, there are four parts to the equation? The driller, (which was before my existence), the owner, the operator and the purchaser of the products, who generates the disbursement checks. Does the operator seek out the best price for the oil and gas produced and sign a lease agreement with the purchaser? (ConocoPhillips, Pacer, etc?) Feel free to suggest other resources to answer my questions. Thank you

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Post ID: @Gf2gs1q-2blh

I heard they found fresh paint on the side of his vehicle. Caused From another vehicle pushing his?

Just a rumor but makes you go hmmm.

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Post ID: @Gf2gs1q-2mlq

so you were in the business. woop-tee-doo. you probably drive an f-350 but you don't know shit

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Post ID: @Gf2gs1q-2flz

Owning several leases,I have done business with them and other companies over the years.

Chesapeake ALWAYS pays more than anyone else. His death was pure murder by the government, just like that guy in organ

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Post ID: @Gf2gs1q-2ica

Don't feel sorry for the idiot evil man that off himself!! Get indicted then a day later, you're dead...yeah right it was an accident

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Post ID: @Gf2gs1q-2dgs

Prayers for his family. Aubrey will be missed!!

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Post ID: @Gf2gs1q-2imm

You will be missed Aubrey. So much talent and wisdom, the Greatest Landman whom ever lived. God Bless you Sir. Deepest sympathy and prayers to your family and friends.

Onward and Upward Aubrey, and Rest In Peace.

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Post ID: @Gf2gs1q-2gnk

For all of us who knew and worked for this extraordinary individual will never forget the kindness he showed to each of us. These idiots dont have any clue how this industry works. AKM we will never forget you. We will support you and your causes to the end. Your death will not be in vein. Katie and the kids our prayers are with you as this horible injustice was done to your husband and dad

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Post ID: @Gf2gs1q-2izt

AMEN, you will never convince me that Aubrey drove into that bridge on his own. The DOJ and every member of them should be ashamed of this disgrace

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Post ID: @Gf2gs1q-2vbi

I am now retired from the oil industry. From 1967 to 2009 I often suffered thru the ups and downs of the oil industry. One time I had to lay my staff off twice before they laid about 700 of us off at once. I was always in the office trying in one way or another supporting the efforts of exploration and production efforts. Most of the time I felt the industry tried to protect it's employees from job loss, but often the home office was brutal and upper management was selfish. I was in other industries for a few years and saw the same thing. This said, the most protective, self serving groups I have ever seen are the politicians. They are wolves preying on the public they are supposed to serve. One in my family actually negotiated with Audrey and I heard no bad reports about him. RIP Audrey you were a true giant in Oklahoma's oil industry.

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Post ID: @Gf2gs1q-2wnb

Thank you! A person who loved a city so much could not have orchestrated its demise. The good he has done will always overshadow the travesty they've tried to make of his legacy! I knew God would reveal exactly who Mr. McClendon was. Rest in Eternal Peace! Your light will always be bright in OKC!

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Post ID: @Gf2gs1q-2qem

Breaking bad...Everyone loved the evil guy!

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Post ID: @Gf2gs1q-1zow

He was a crook and I am still waiting for my money and Strata Minerals stole some of my land they are all crooks. God will fix all of them most of us that live in Oklahoma are not rich we got minerals from our parents and that is all we got and for them to steal everything we have is terrible. They should live in our shoes.

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Post ID: @Gf2gs1q-1vpp

Amen to that

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Post ID: @Gf2gs1q-1keb

WILLIAM T. FRANCIS, LLC

Oil and Gas Consultant

Contact Us:

William T. Francis, LLC

7207 JOYCE WAY

DALLAS, TEXAS 75225

Phone: 214-368-9500

FAX: 214-373-1810

Email: [email protected] OR [email protected]

Hours of Operation

9:00 AM to 5:00 PM Monday through Friday

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Post ID: @Gf2gs1q-1azu

The guy who said the gov was ok until their revenue dropped prob has it right. Why did they do this at this late date? Prob at the prodding of someone who got lease money, but due to low prices hasn't been drilled on.

Lease prices would never have gotten as high as they did w/o a

Chesapeake.

Greed knows no bounds.

No good deed goes unpunished.

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Post ID: @Gf2gs1q-1soj

I agree. I've been buying mineral rights for several years. It's been difficult to buy minerals in parts of Oklahoma, due to Chesapeake's high lease bonuses. Their lease bonuses were over three times my purchase offers, which usually start at three times lease bonus amounts. Thanks for sharing this.

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Post ID: @Gf2gs1q-1yxo

WOW! I didn't know Mr. McClendon but do know what he did for our city. Thank you for standing up for him.

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Post ID: @Gf2gs1q-1fgm

Fake letter. Jeez people will believe anything.

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Post ID: @Gf2gs1q-1gva

In the 80's my dad was charged with mail fraud for collecting rent on properties that we're going into foreclosure. The properties in question would have sat vacant and unattended otherwise. At that time, VA and FHA would not accept partial payments for mortgages. When the balanced budget act was passed accepting any payments vs forwarding them to the government became a crime. (How do you stop rent checks coming in the mail).....The Feds hounded my dad for years; making his life miserable. The houses in question were worth less than the mortgages against them Due to the housing slump; yet my dad spent 15 months in federal prison. I promise, there was at least SOME bid rigging that went on within CHK. He may have helped the people of Oklahoma; but it is possible to have good intentions and still break the law. The Feds really don't care if you intended to or not......

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Post ID: @Gf2gs1q-1vsk

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