We got our paperwork today to fill out to send back to Exco telling them how much they owe us for back royalties in the BK. Anyone else get this?
I am trying to figure out why THEY want the mineral owner to figure out what is due
My thoughts exactly!
I received mine and sent it on to our attorney. You are advised to do the same.
Tell them they owe you $5-million dollars and see what happens!
From what I understand after reading the papers is that they want us to figure out what we are owed as well... does not make a lot of sense to me since I have no idea of how much they have taken from the well(s) or what the price was that they sold it at.
Very irritating to have to deal with this and to make it worse, I cannot locate a Land, Mineral & Gas Attorney here in Oregon that knows anything about Texas, Arkansas or Louisiana Rules and Regulations.
I didn't know bankrupt oil/gas companies could withhold royalty payments! A royalty owner is not a creditor... and should continue to get royalty payments. Exco is selling oil/gas/liquids. royalty owners should have been payed from that. But I'm not a lawyer and don't live in Louisiana.
I rest my case. I am a geologist and live in Texas and I hired an attorney.
I don't think we have a lot of money coming. Think I will just send them a request for about 5 times what I think we are owed and let THEM work it out with their attorneys. Bet they figure it up quickly when they see we want more.
If a royalty owner truly is supposed to fill out the form, this is ridiculous. I can't see how anyone can do it accurately. One has no idea what price they get paid per mcf, nor the deduction amounts for any given month.
Have they NOT been paying royalties, and, if so, for how long?
It is all odd. Nothing like any of the other recent bankruptcies we have been involved in. Plus they filed the bankruptcy in Oregon. They must have a motive, just like Sabine must have had a motive for filing in New York.
I just got these notices myself and had a chance to review them. If any EXCO royalty owner has good reasons to believe that his/her royalty has been underpaid by EXCO at any time prior to January 15, 2018, the only way to recover the unpaid royalties is by filing a claim with the bankruptcy court using the paperwork provided and with supporting documentation. However, if you have been getting paid royalty from EXCO every month without interruption and your decimals are correct, there is probably no need to file anything with the bankruptcy court.
Typically when E&P companies file for bankruptcy one of the first things the bankruptcy trustee will do is resume payments to royalty owners in order to preserve the company's leases. Leases are the primary assets E&Ps hold, so their creditors generally won't object to paying out royalties because they want to preserve the company's assets so they still have something they can recover from the bankruptcy.