Why does the Gross Volume shown on the Quarterly Payout Statement differ from what Sonris shows as reported to the State?  Since the start of production of this well Chesapeake has shown on the quarterly statements 89,287 more volume than what is represented on the Sonris report.  In dollar figures it represents about $252,346.

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That magic word is more collective than thought by many. Do not fool yourself.

An analysis of lease agreements, government documents and thousands of pages of court records shows that such underpayments are widespread. Thousands of landowners like Feusner are receiving far less than they expected based on the sales value of gas or oil produced on their property. In some cases, they are being paid virtually nothing at all.

In many cases, lawyers and auditors who specialize in production accounting tell ProPublica energy companies are using complex accounting and business arrangements to skim profits off the sale of resources and increase the expenses charged to landowners.

http://www.propublica.org/article/unfair-share-how-oil-and-gas-dril... 

Tommy ,

I have read your post several times and maybe I'm misunderstanding something. I think you are saying in your post that CHK is reporting 89,287 more gas production to you than to the State. Is this correct or am I miss reading your post? If that is correct then they are reporting Gross volume to you and Net to the State. I don't see where that is a bad thing as far as you are concerned. It should mean that your UMO costs will pay out faster. I hope I'm reading and understanding this correctly.

Joe, you make an excellent observation, and I'm embarrassed that I didn't catch it myself. If CHK is in fact reporting more on production statements to a UMI than they are to the LA Dept. of Revenue (and not the other way around), then my course of action would be to avoid drawing any attention to that fact.

I agree!!!!!!!!!!!!!!!!!!!!!!!

You read it correctly Joe.  I was not comprehending why there was a discrepancy in their Quarterly statements and the corresponding Sonris report.  Thank you for your input.

Just hope that CHK does not realize that there might be a problem and they let it prescribe.

What is the prescription time on overpayments to royalty owner? Not sure my self, but I've seen one major go back more than 10 years - and subtract from mineral royalty owners on unrelated then producing wells (no justice in this world). For that matter, what's the prescription for recoving under unjust enrichment in Louisiana? 

Harold,

A situation like this illustrates why it is important to have a clause in the lease stating that any over payments from acreage disputes or mis-calculations of royalty, etc. become the property of the Lessee with no recourse to Lessor. When included with a no warranty clause this should protect the Lessee from this type of situation.

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