royalty owners brochure_fall 2011

7/30/2019 Royalty Owners Brochure_Fall 2011

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ROYALTYOWNERSA M I N E R A L O W N E R S G U I D E T O A B E T T E R Q U A L I T Y O F L I F E

C H E S A P E A K E E N E R G Y F A L L 2 0 1 1


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OFB E N E F I T SMinerals Helped Start Long-Awaited Family

Matt and Christy Downey

Paying it Forward

James and Sandra Whittenburg

Chesapeake is the Way to Go

Michelle and Elias Castellanos

Neighborhood Land Value Runs Deep

Scott and Tammy Neystel

Confidence Gained Through Results

Gene and Julie Dimock

Crowley Enjoys Field of Dreams

Richard Mattinson

Royalties Help the Entire Community

Jack and Janice Loggins

Learning from Experience

Martha and Cruz Hernandez

Royalties Make Vacation Home a Reality

Laura and Alfred Distefano

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A M I N E R A L O W N E R S G U I D E T O A B E T T E R Q U A L I T Y O F L I F E

www.AskChesapeake.com/B ar ne tt 100 ENERGY WAY FORT WORTH, TEXAS 76102 817-502-5000

So far in 2011, Chesapeake Energy Corporation has paid

out $164 million in natural gas royalties in the Barnett

Shale. Last year alone, Chesapeake distributed $252

million in royalty payments. The current royalty payout

in the Barnett to date is more than $1.34 billion.


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Minerals HelpedStart Long-Awaited Family

When Matt and Christy Downey moved into

their home in 2002, they didnt really give

much thought to mineral rights on their

property. So six years later, when the couple

discovered Chesapeake Energy was interested

in leasing mineral rights on properties in their

Arlington neighborhood, their excitement was

tempered by a lingering doubt about whether

they had obtained those rights.

My rst thought was, I cant remember

whether we got them when we closed on

our home, Matt recalled.

I suspected that we hadnt and that we

were going to be the odd family out in our

neighborhood, Matt said.

But as we investigated, we found out that,

lo and behold, we did have mineral rights.

As it turned out, the money was absolutely

needed, Matt said.

After conrming their mineral ownership and

learning about all the potential future benets

of being a Chesapeake lessor, the Downeys

decided to lease their minerals to the

company in 2008.

It proved to be a wise and fateful decision.

When the bonus check arrived for the

Downeys, the timing could not have been

any better.

For years, Matt and Christy had wanted

to adopt a baby from China.

Finally, they decided the time was right to

adopt and led paperwork with the China

Center for Adoption Affairs.

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ROYALTY OWNERS FALL 2011 03

The bonus payment we got

from signing our lease really

helped us underwrite the

expenses of this. The money

allowed us to pay almost all of

the adoption fees.Matt Downey

Soon after submitting their application, the

Downeys were approved as adoptive parents.

And while the couple could hardly wait to

meet their new little boy or girl, unexpected

delays in the adoption process hindered their

timetable and tested their patience.

Although the lengthy delay was disappointing

and frustrating to the Downeys, they

remained committed to waiting for their new

child. They werent, however, willing to wait

any longer to become parents.

Matt and Christy decided the best solution

was to add yet another member to their

family something they previously had no

intention of doing.

The wait was getting longer, and we werent

getting any younger, said Matt.

We had been waiting a couple years for our

adoption to take place. So in the interim, we

actually decided to adopt a baby girl from

California.

The China Center for Adoption Affairs usually

doesnt allow adoptions when another one is

already in progress, Downey said.

But because the wait had gotten so long,

they let us do a parallel adoption.

The result was that the Downeys could

proceed with two adoption plans.

The couple adopted Olivia as a newborn in

January 2008. About 14 months later, the

adoption from China was nalized, and

7-year-old Jonathan entered their lives.

He is happy, healthy and proud to be a part

of our family, said Matt.

Although the two adoptions were expensive,

they proved priceless. The couple was able to

use their leasing bonus from Chesapeake to

pay a signicant portion of the adoption fees.

I never anticipated getting

a leasing bonus; it was not

something that was on the

horizon for us. And I absolutely

would never have expected it

would have helped us pay for

the adoptions the way that

we did. Matt Downey

Some things are well worth the wait.

Such was the case with Mat t and Christ y

Downey of Arlington. Their patience

during an adoption process, coupled

with an unexpected but welcome leasing

bonus from Chesapeake, lite rally helped

bring their new family together.

Proud parents Matt and Christy Downey share a moment with children Olivia and Jonathan.


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Paying it Forward Chesapeake is the Way to GO

James and Sandra Whittenburg may have been the names on the check, but it was another pair

of individuals who beneted from the couples Chesapeake leasing bonus.

Those two people, James said, simply needed the money more.

James recalled details of a serious head-on automobile accident ve years ago involving

Sandras work colleague and 2-year-old daughter. Both escaped without suffering long-term

injuries, but had to spend several days in the hospital.

Using their bonus check, the Whittenburgs subsidized their medical expenses.

They needed help, and we were lucky enough to be able

to provide it.James Whittenburg

The Whittenburgs, now retired, have no regrets about not keeping the bonus money for

themselves especially since they are now collecting royalties.

The last few years weve used them to help pay our property tax, James said of his royalties,

which has saved us from having to dip into our own pockets.

Thousands of families across North Texas

are in a position similar to Michelle and

Elias Castellanos, who are beneting from

natural gas production right under their

feet. In exchange for allowing gas producerslike Chesapeake to develop their minerals,

property owners receive royalties, or a share

of the prots that the natural gas yields.

They are helping us nancially as we put our

daughter through college, Michelle said of her

royalties. They are also helping us with bills

here and there.

I keep saying, This is the way to go, Chesapeake

is the way to go, she said. I love the personnel

and the people there.

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James and Sand ra Whittenbu rg used the initial i ncome from their min erals to help a friend in n eed.

Scott and Tammy Neystel.

Parents Elias and Michelle Castellanos, center,

with children, from left, Michael, Ellison and

Danielle, along with grandson Joseph.

NeighborhoodLand Value Runs Deep

Scott and Tammy Neystel remember

the day they learned there was

something special about the land

they were about to acquire in Fort

Worths Riverside neighborhood.

Back in 1988, Scott said he didntgive much thought to having mineral

rights on the property. Then 13 or 14

years later, here comes the natural

gas industry.

Today, their royalty income helps the

Neystels pay taxes and insurance.

Scott is happy that others throughout

the nation are beneting as well.

Its real important for the country,

Scott said. It puts more Americans

to work if we can produce more of

our own energy here.

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For years, Gene and Julie Dimock had wanted

to benet from mineral development under

their Joshua home.

But due to a challenging geological formation

under their property, some natural gas

producers were reluctant to get involved.

Other companies said they couldnt drill here

because of what was under our land, said Gene.

But Chesapeake didnt have a problem with it.

As proponents of the natural gas industry,

the Dimocks were eager to join the thousands

of North Texans reaping the benets of

mineral development.

Chesapeake was like a

godsend. We leased to them

and they drilled. It really gave

me a lot of condence in the

company. Gene Dimock

Royalties have helped the couple preserve

their retirement savings and even helped with

the purchase of new vehicles.

We couldnt be happier, said Gene.

Chesapeake has really been great to us.

Confidence Gained Through Results

The underground natural gas reserves of the Barnett Shale manifest themselves in positive ways

above the surface, too. Thats evident on the playing elds of the Crowley Youth Association.

Royalties have helped the Crowley Youth Association keep its athletic elds in top shape. When

we get them, they are an extra gift that helps us purchase things on our wish list, said Athletic

Director Richard Mattinson.

Royalty income has helped with the costs of new scoreboards and landscaping materials to

improve the quality of the playing elds.

Beneting as a result are 700 young athletes who participate in the associations football,

baseball, softball, basketball and cheerleading programs.

For some athletes, the benets of royalties have a direct impact, Richard said, adding that

scholarships have even been offered for some athletes who might not otherwise have the

opportunity to play.

This spring, we used royalty money to award scholarships to 10 baseball players, he said. We

dont want to turn kids away for nancial reasons, so we have a format in place to o ffset the

costs for families who need the help. Royalties allow us to do that.

ROYALTY OWNERS FALL 201107

07Crowley Enjoys Field of Dreams

Athletic Direc tor Richard Mat tinson said roya lties keep Crowley play ing elds in top cond ition.Julie and Gene Dimoc k enjoy the many benet s of being royalty owner s.


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Royalties Help the Entire Community Learning from Experience

With their cost of living increasing and retirement reserves shrinking, royalties provide much-

needed relief to many retired families. This is especially true when they are responsible for

supporting an additional family member, as is the case with Jack and Janice Loggins, who are

raising their teenage grandniece.

Im retired and so all money is very benecial to us. Jack Loggins

Jack, who was a trafc engineer for the City of Arlington for 23 years, contends that everyonein the region should share his appreciation for the natural gas industry. At a time when the

economy is ailing and crude oil prices are in ux, natural gas offers an economical alternative for

fuel that he says should be embraced.

The royalties help the entire community. We have identied

natural gas here, and it would be a shame if we didnt go down

there and get it. We need to reduce our need for foreign oil.

Jack Loggins

The economic benets of royalty ownership

have offered Martha and Cruz Hernandez

some nancial exibility and the opportunity

to learn more about natural gas.

While the royalty revenue the couple receives

from Chesapeake has been rewarding, the

knowledge they have gained from the

company has been invaluable.

Ive been very pleased with the services and

everything weve gotten from Chesapeake,

Martha said.

And Im denitely happy to have everything

these little wells decide to produce.

ROYALTY OWNERS FALL 201109

Royalties give Laura and Alfred

Distefano more quality time to relax

at their favorite vacation destination.

Jack and Janic e Loggins, with niece N atasha. Jack is a pr oponent of energy i ndepende nce.

Royalties MakeVacation Home a Reality

The beautiful Florida Panhandle

has proven to be an ideal getaway

destination for Laura and Alfred

Distefano. They have been visiting

the area for years, and after much

deliberation, recently decided to

invest in property there.

The income the Distefanos receive

from mineral development under

their Fort Worth residence inspired

condence to purchase the vacation

home. Royalties also helped them

furnish the new place.

They kind of fell into our laps, Laura

said of the royalties. Its something

we didnt have to work for, and we

were lucky enough to be able to

work with Chesapeake.

Cruz and Martha Hernandez credit Chesapeake with

helping them lea rn about the natural g as industr y

and the benets that result for North Texans.

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Meet more royalty owners by visiting www.AskChesapeake.com/Barnett/RoyaltyOwners.

BSB

IV0110/11

100 ENERGY WAY FORT WORTH, TEXAS 76102 8 17 -502-5000

royalty owners brochure_fall 2011

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