We seem to have struck out again, first with Vine and now with Indigo. We signed all the paperwork in May and have been getting one excuse after another about why the check is (NOT) in the mail--but with assurances that it's coming. Has anyone else had this experience? I've lost faith in Indigo as well as Ruffin out of Lafayette.
We are in 16 11n 15w (McCoy well, Logansport) and 27 12n and 15w (Collins well, Grand Cane).
It's been so long since I've looked for documents in Sonris, can someone point me to where I'd find if they've sought a permit, or whatever? I do know that they restarted the McCoy well, after Chesapeake stopped production.
(They promised this week and it's Friday, but my mail hasn't come yet. My well of hope is no longer springing eternal.)
I'd like to set the record straight in Ms. Nesom's issue with Indigo and Ruffin Energy. Our office (Ruffin Energy) worked with Ms. Nesom to acquire an oil and gas lease. Ms. Nesom's lease form and her revisions were negotiated in good faith. Upon coming to an agreement, Ms. Nesom and her brother signed the lease, but unfortunately, there was a delay as Indigo required a Memorandum of Lease to be signed as well.
As both Ms. Nesom and her brother live out of state, standard practice is to receive the signed original documents in the mail and then our office requests the checks from Indigo. Our office is required to provide title before a check is released. Ms. Nesom's title was incomplete as the Judgment of Possession of her mother, whereby possession of the property was transferred to her and her brother, was filed in Natchitoches Parish, and not DeSoto Parish. Ms. Nesom stated she would have a certified copy of the document placed of record in DeSoto and supply our office with a copy.
Ms. Nesom followed through on this and after we were supplied the document to complete our title report, we requested checks for her and her brother.
This entire process took time. Our office was in constant contact with Ms. Nesom during this period. Unfortunately, she chose not to believe our statements about the process, and even more unfortunate, she chose to take her disbelief to a public forum.
Our office, nor Indigo, in any way attempted to deceive, betray or deny Ms. Nesom of her lease or bonus money. We attempted to walk her through the process by staying in communication and answering her questions.
In this business, a company's reputation means everything. Anyone can relay a story, whether accurate or not, which can influence other people's perception. As you will notice, Ms. Nesom's last posting was on Sunday. She received her bonus check via FedEx on Tuesday.
Dina/Al, thank you for providing some explanation from your prospective. Since your company forwarded Gayle's bonus check would it be safe to assume that proper due diligence has been performed in regard to her title?
Yes, it has and everything is in order.
Thanks for clearing that up and for being willing to engage here on GHS. I wish we had more input from industry members willing to explain the processes required to establish title and correctly pay royalties.
I have an update, a conclusion, I hope, to the Indigo saga. We received our checks last week, but after several conversations and apologies from Indigo and the landman company. "Perfect storm," etc. It took 7 weeks from when we finished the lease. Here's what was shocking to me. The person at Indigo actually admitted to me that Indigo had started producing the well BEFORE they had the lease. Chesapeake "sold" our minerals to Indigo AFTER they had lost the least due to nonproduction--it wasn't theirs to sell--and Indigo began producing the well way before we signed with them. I asked the Indigo rep about this, and she changed the subject. I said, "No, I'd like to understand what happened," and told her my assumption. She actually said to me, "You are right. Our guys in the field--you know, engineers--sometimes do things without checking with our land department." I'm afraid I said that I wasn't very impressed with Indigo's business practices. I said it nicely (didn't have the check at that point, after all), and she apologized profusely, saying that they consider their owners very important. We ended on a cordial note. I asked a friend in Louisiana who deals with the gas business how that sort of thing could happen, and he said, "Gayle, nobody cares."
Thanks for the additional information, Gayle. The problem here is Indigo, not Ruffin Energy. I don't completely agree with your friend but understand why he fells the way he does. I think a lot of mineral owners care but just don't know the basics of managing their mineral interests. Yours is a cautionary tale for GHS members. When royalty payments stop, they need to find out why. And if production has ceased and does not resume for three months, they need to seek a release of their lease. Lacking some specific language that keeps a lease in force when production stops for an extended period of time after the primary term, the lease rights expire. Send a certified letter demanding that the operator file a release in the public record within a reasonable period of time, say 30 days. This should get you a reply that let's you know whether the operator agrees or does not agree that the lease has expired. If they claim the lease remains in force they should provide a reason. That is when mineral owners should seek the assistance of an experienced O&G attorney to determine if the reason provided is legit, or not. Taking no action can lead to just this type of situation.