According to the Louisiana Revised Statutes, upon written requests via USPS certified mail, the oil & gas companies are required to send sworn statement production cost statements to the unleased mineral landowners every three quarters.
The last quarterly statement that I have received was in June, 2017!
At least one of the Wells has paid out. I just find this whole ordeal to be quite interesting, to say the least.
So your last one should have come in October? How many times have they been tardy?
The last quarterly report should've been sent to me for July/Aug/Sept., 2017. I have not received it as of yet.
They now should be getting ready to send me the quarterly report for Oct/Nov/Dec., 2017.
This O&G Company have been tardy several times...in the which I have sent them many certified notices to that effect.
I imagine that quarterly reports, just like monthly production reports to the state, run a couple of months behind. The October monthly production reports are not yet available on SONRIS. They should be available around the middle of December. So approximately six weeks after the last reporting day for any given month. That would make the quarterly report for the 4th quarter of 2017 due around the middle of February.
You are correct in what you're saying. But, the Oil & Gas Co. never sent the first nine month's production for the two alternate wells and some of the other months are missing as well. Though we are now into December, they never sent the July/Aug/Sept 2017 Quarterly Report to me. They have well exceeded the time allowed in regards to the Louisiana State Legislature Revised Statutes.
Surely, there has got to be an answer to this mystery.
Skip, as usual, you always respond to me with thoughtful and informative posts. I really appreciate your help!
Even though the Oil & Gas Company reported gas production...they still refuse to send me the Quarterly Reports that are required by law for them to do so. (Also, the 3rd well's gas production is "off the chart)."
I am wondering if there are any other UMO's who are having this problem.
According to this particular Oil & Gas Company's STATEMENT OF WELL COSTS AND REVENUES:
Jan/Feb/Mar 2017 Payout Statement shows that they made $1,337,871.96
(According to their "Sworn Statement," the Balance to Payout...what they supposedly profited from is $397,085.81).
Apr/May/June 2017 Payout Statement shows that they made $1,026,438.28.
(According to their "Sworn Statement," the Balance to Payout was -$392,068.93). This shows that this well has paid out. (Do you notice the negative sign)?
So, not only is this Oil & Gas Company late in sending me several Quarterly Reports that I have requested by USPS certified mail,
this Well has also paid out. They seem to be profiting from this Well but are not paying me anything.
Is this legal?
Mind you there are 2 other wells that this particular Oil & Gas Company are drilling from in our section.
TIA for all of the beneficial information that I've been receiving via email!
Were you able to use my instructions to look up the well costs for your other wells?
Thank you, thank you, thank you!
Sonris is an absolute blessing too.
As my relative said, "As soon as this well paid out and this "particular" Oil & Gas Co. starting making huge monetary amounts, they stopped sending the Quarterly Reports that are required by the Louisiana Revised Statues and also sent incomplete or missing months of production. Here is is Dec. 2017 and the last report that they've sent to me was for Apr/May/June, 2017.
Even if they allege to have sent these missing or incomplete Reports to me... but I know that they did not, the United States Post Office keeps a record of the date and time that I or anyone else picks up all certified mail from them.
Again, I'm no expert, but is any of this legal? Can the Oil & Gas Co. do this?
Quick thought - have you ever sent this company your owner / payee information? (Name, address, SSN / EIN, etc.) Some companies will place JIB proceeds in suspense until you have remitted this information.
Though it appears that you have done what you can in order to obtain this information, it may be time to have the next letter come in the form of a demand from an oil and gas attorney. Pay for an hour or so of their time (and their letterhead) to issue a "demand letter" informing them of timely compliance and possible legal penalties for not reporting this information.
Some items and information to bring with you to an appointment:
1) Copies of prior correspondence sent and received (certified or registered mail, or not) to and from the company in question.
2) Copies of prior reports sent to you evidencing prior compliance with your request.
3) Copies of your prior payee paperwork (if you already sent it in - companies will generally (?!) send this to you upon discovery or knowledge of your interest.
4) Unit name, field name, parish, and relevant serial number(s) of well(s) either being the unit well, substitute well(s), or alternate well(s)
Unfortunately, some companies will not take individual owners seriously until they see a professional's letterhead asking for substantially the same thing for which you have already asked. As much as I wish that not to be true, it sometimes is the case.
Also (unfortunately), given timely notice, timely compliance with the statutes is required (with statutory penalties for noncompliance) - but in practice a certain amount of delay is "forgivable" as long as the company is deemed to be responsive (though not compliant). Noncompliance for months - different story, provided that you have taken the proper steps to notify and protect your rights. Other penalties can be assessed upon a judicial determination and award (if it gets that far).
Personal suggestion - if you feel that you have "money coming", hire an attorney (or any professional) on an hourly basis rather than contingency if you can. It generally works out better than unpacking hard feelings if you begin to reconsider whether their compensation was worth the service provided after all is said and done. Obviously, not everyone can afford to do this.
Sometimes, a land professional can work on your behalf and obtain a resolution to the problem (this generally lies within a landman's purview wrt UPL statutes - but if the company decides to continue to stonewall, you'll need an attorney to represent your legal interest anyway. I've done these for a few folks - many times professional courtesy is rewarded. Other times it is not - personally I do not feel right in billing for ineffective service.
Good luck to you.
I want to thank you for giving me so much valuable information.
Your thoughtfulness is much appreciated.
I am sure that you have not only helped me by sharing this needed information, but you have helped so many other people who read from this website as well.
Again, thank you so much!
This information was sent to me by the Oil & Gas Co:
***Notice the ( - ) negative signs and also the parenthesis around the June and Sept 2017 Quarters.