# Chesapeake Fall from the Barnett | Berlin Royalties > John McFarland at Oil and Gas Lawyer Blog has a thought provoking post about Chesapeake's trade to Saddle Barnett Resources, LLC in the Barnet… Source: https://www.berlinroyalties.com/oil-scout/chesapeake-fall-from-the-barnett/ Publisher: Berlin Royalties, a veteran-owned oil and gas mineral and royalty buyer in Tulsa, Oklahoma, buying for its own account since 2014. Call or text 918-984-1645. License: free to quote and cite with attribution to Berlin Royalties and a link to the source URL. ## Chesapeake Fall from the Barnett By **Stephen Clayman** · August 26, 2016 All, John McFarland at [Oil and Gas Lawyer Blog](http://www.oilandgaslawyerblog.com/2016/08/chesapeake-exits-barnett-shale.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+OilAndGasLawyerBlogCom+%28Oil+and+Gas+Lawyer+Blog%29) has a thought provoking post about Chesapeake's trade to Saddle Barnett Resources, LLC in the Barnett Shale. It is incredible that Chesapeake is essentially trading what used to be it's most prized asset while paying $334 million to extricate itself from an onerous gas purchasing agreement. It should not be lost on the shareholders that the gas purchasing agreements were an accounting trick that Chesapeake negotiated with itself before the midstream company spun off as Access Energy. To quote from McFarland's piece, "Recall that Chesapeake originally built out its own gathering system for its Barnett wells, which was held in an affiliate called Chesapeake Midstream. It spun those assets off into a separate, public entity called Access Midstream, but not before entering into a gathering agreement with its affiliate that provided very favorable terms to Chesapeake Midstream, including payment of a minimum volume commitment, which required Chesapeake to pay for a minimum volume of gas, even if it could not provide the gas. This gathering agreement greatly enhanced the market value of the spinoff, Access Midstream, which was later acquired by Williams. Since gas prices have remained low, Chesapeake has not been able to deliver its minimum volume commitment, increasing its gathering and transportation costs to the point where they exceeded the price it could get for its gas." If that's not Funny Money, I don't know what is. Another case of management's incentives not being aligned with investors and most importantly a board consisting of know-nothing yes men who found their rubber stamp at the 11th hour. More to follow, Berlin ### Thinking about selling your minerals? Berlin Royalties buys Oklahoma minerals and royalties, and we show you the work behind every offer. Free, no obligation, and if keeping them is the right answer we will tell you that too. [Get a Free Valuation](https://www.berlinroyalties.com/free-valuation/) or call or text **[918-984-1645](tel:9189841645)** More From The Oil Scout [August 8, 2016 ### The Golden Trend and the Junkyard Dog While the SCOOP and STACK receive most of the national press from bankers who love generalizations, trends, and acronyms, the venerable Golden…](https://www.berlinroyalties.com/oil-scout/the-golden-trend-and-the-junkyard-dog/) [March 3, 2016 ### Aubrey K. McClendon, an Oilman Mr. McClendon passed today. He pioneered the modern land grab and the lease play. One didn't have to deal with the dinosaurs or the remains of…](https://www.berlinroyalties.com/oil-scout/aubrey-k-mcclendon-an-oilman/) [August 7, 2016 ### Types of Oil & Gas Interests Berlin has received a number on inquiries recently about the types of oil and gas interests one can buy/sell/trade. While these are detailed i…](https://www.berlinroyalties.com/oil-scout/types-of-oil-gas-interests/) [June 5, 2016 ### Canadian County, Oklahoma SITREP Because of its premier position in the heart of the STACK, leasing and transaction activity has not slowed in Canadian County, Oklahoma in 201…](https://www.berlinroyalties.com/oil-scout/canadian-county-oklahoma-sitrep/)