Help on " MIS-ALLOCATION" of funds

im looking for someone to shed a little light on my situation please.....Ive been receiving royalties from my well since january 2012. ive figured my check pretty close each and every month by reading my production gauge on my well. after receiving my jan feb march check ive found with my royalty calculator to be real close as to my check. but to my surprise this month i opened my check and was shocked at what i saw. the company sent a statment showing a 60% reduction for my january royalty and deducted it from my march invoice. i sent a email for a explaination and all i have received tback was a email stating they had misallocated my royalties for january. has anyone ever had this situation jappen? please any e,planation would be greatly appreciated. im in Texas by tge way. thanks

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Permalink Reply by Kathy M. Stephens on June 4, 2012 at 9:02pm

I have had the same thing happen to me in the past.  In about 1982, Amoco paid everyone about 10 times the amount owed to the mineral owners in a unit in Harrison County.  They then sent a letter explaining the mistake and letting the mineral owners know that they could send the check back or keep it and the over payment would be taken out of future production.  The unit is still producing, by the way.

Permalink Reply by easttxhaynesville on June 4, 2012 at 9:07pm
hey kathy thanks for your reply. i never received any letter or anything they just held the money and didnt provide any explanation at all. i then emailed them and all they have replied is there was a mos allocation thays all. but what confuses me is i have figured my production prior to receiving my check and i cannot inderstand where they are coming from at all
Permalink Reply by Kathy M. Stephens on June 5, 2012 at 8:32am

Wish I was more help.  In your case, I might try to catch the "pumper" when he is making his rounds at your well and see if he can shed any light on the problem.  At the least, he probably knows someone you could talk too.

Permalink Reply by robert minton on June 4, 2012 at 9:04pm

Worse case scenario: My client was overpaid, at the rate or $12.00/mcf, and recoupment (pay-back) is being had at the rate of $2.30/mcf. Long time before next check!

Permalink Reply by easttxhaynesville on June 4, 2012 at 9:10pm
thanks robert. i cant seem to get them to shed amy light on a error at all. and my figures were close each montg on what i should receive. bad thing is they still haven't reported its even producing on railroad commission website
Permalink Reply by Krkyoldhag on June 5, 2012 at 8:44am

It was NFR in Harrison country that didn't pay here this month on 3 gas wells at 31 and I-20.  Does anyone out there really know what is going on?  I am to the point of going out and reading meters.  But what good would it do?  Its just whatever they want to pay and they know it.

I know that a woman with wells in Scottsville that is having money deducted from her checks..meaning she does not get a check for a very long time because of this "allocation".  And the wells with NFR might be same thing.


Ok can this be a scam?  They sold ng at 12 and now collecting back production at the rate of 2$

Looks to me like they getting six times the ng back ...talk about magic math.

Again I do not think there is one single thing royalty owners can do.

Permalink Reply by easttxhaynesville on June 5, 2012 at 9:05am
it was nfr with me as well. i have sent follow up emails which have gone un answered. shouldnt i have received a notice prior to them deducting the money just because with no explanation? ?? we better keep a close eye on this situation. do we not have any recourse at all no legal means to investigate? ??
Permalink Reply by Roy Austin Smith on June 5, 2012 at 10:14am

Must be Cheaspeake. They are paying well below other companies. they are paying well below the posted gas prices. they are paying well below a friend of mine who is in the same area of some of my wells. They paid me as low as $1.42 , while the posted price was $2.42 and my nearby friend got $2.50, One well which is producing, according to sonris lite did not pay off at all.  The rumor circulating around Desoto Parish, is "Cheaspeake is shuting in all their wells"  This is after puting up with,of course we were paid, non english speaking workers who drove all over my land for checking for gas.  The cut my fence. too lazy to drive 50 feet to an opening on someone's land.  they had the guts, barely able to speak english to tell my son to quit bushhoggin in my own pasture., Now they are more or less stealing what little gas they are producing. they also are holding out expenses.  took me three or four months to find out.  they kept making excuses and one employee slipped up and sent me one copy.  I ask for two more months, they never sent them. on a phone call to them , the employee rudely told me they did not have to furnish copies and they would not sent them out. It comes out of my income and i should be the one to place the expense on my income tax. not them. They started holding tax out after a year with no explanation  as to what kind of tax. i called, they named the tax one thing, called Louisiana and they call it a different name. I live in Texas but my land is in Louisiana. Good luck. By the way, they have some one monitoring these post.

Permalink Reply by GoshDarn on June 5, 2012 at 11:54am

Mr. Smith:

Like they say, it don't take a gun to steal from honest/hard-working folks (and keep on stealin' 'em blind) these days.

Hey, there oughta be a law.  Crooked CHK.

Now, if what happened to you had happened to me on my land -- I know I'd be calling all my family, neighbors, and friends and, y'know, getting them to call the La. Attorney General's office and complain.

The guy to talk to in Baton Rouge is Ryan Seidemann @ 225-326-6085.

His email addy is:  SeidemannR@ag.state.la.us

Yep, and that's what our tax money is supposed to be paying for, right?

Justice.

In other words, in this country we're taught to use our legal system of "honest" judges to right wrongs and thus we shouldn't revert to the old ways of seeking justice.

So, if it was me, I'd herd together a posse and stir it via the AG.

(If it was me.)

 

 

 

 

 

Permalink Reply by Roy Austin Smith on June 5, 2012 at 12:46pm

I did not call the ag, but i emailed serval agency in La, the mineral board is one. my gripe was the prices, the hidden expenses.  The mineral board said it was out of their juridiction. Just received a email from Cheaspeake, wanted to get a copy of the $2.50 price. I am sure she doesn't want to publish her business to the world.  Chesapeake knows about the prices. They have someone monitoring haynsveille shell.  they know all about the grips. For a while , till i slowed down writting on here. their were a number of lawyers with lawsuits against some the companies about the prices, etc.  I corresponded with a couple. I talked to a lawyer.  He said it a scam.

Just got letter telling me the prices for July will be $2,71.  MY wife has 38a of land held by EXCO. they have a small compressor on well. Gather just enough gas to pay off about every three months, just to hold lease. anywhere from  $25.00 to 50.00. they have another well on the same lease, that was shut down about two or three years ago.  Every time they pay off a little, the put the amount on the shut well also, as if it was operating.  I have checked the well many times.  all valves are shut in and it is listed on sonris lite as shut in, but also list the income on it. I have written the mineral board. as usualy, it is not their jurisdication . One phone call, they told me the well was an active well. I guess they write us off as white dumb trash, either that or they are very dumb themselves.

Permalink Reply by HBP on June 5, 2012 at 1:58pm

In East TX Haynesville's case, we don't know that anything has been "stolen",

but if something is odd plenty can be done to address whatever the discrepancy is.  There are laws in Texas, similar to Louisiana, allowing methods to address and compel info on these types of issues.  I'm not licensed in Texas, but I would lightly suggest waiting on the RR commission production reports because all you have at this point to match against the check is your figures from personally checking the well and their checks (which may or may not have had an error).  Also, not every discrepancy will be worked out in weeks, in some cases it can take months.  If its their mistake, seek interest.  If they disregard you, seek an attorney in your jurisdiction that is familiar with these issues.

Permalink Reply by Roy Austin Smith on June 5, 2012 at 2:43pm

Maybe so in Texas, but not so in Louisiana. I live in Texas, but my land is in Desoto Parish , Louisiana. Most people i have contacted in La. , first thing out of their mouth, not my jurisdication. One told me, they take things like very seriously and would check into it. That was about a year or so ago. I paid a lawyer about $1000.00 , got a raise on prices in about four or five months after he contacted them, the next month prices dropped back.  The lawyer had a good many bad words for the company, but it did not help. This lawyer was an oil and gas man and said they were running a scam, but the only way to sue them was to gather a large group of landowners and he would be glad to file suit on them. Of course when they first started the money was good, but slowly the prices dropped and then the production dropped, which i understand, but i do not under why their pay is much loower than other companies in the area. Have one email that July price will be up--$2.71. Have a good day.

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