Replies to This Discussion

Permalink Reply by Spring Branch,mineral owner on March 28, 2010 at 6:44

I'm hoping someone will try my directions and report back either success or failure using them, in case I need to tweek them.

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Permalink Reply by redrivergal on March 28, 2010 at 9:57

Spring Branch,
Thanks for the directions. They worked.

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Permalink Reply by buckmaster on July 14, 2011 at 5:47

I have Windows 7 and wife has XP, both with the Java Oracle downloads, the directions still doesn't work. Do you need Sonris Lite or else something is still missing.  Thanks

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Permalink Reply by The_Baron on July 14, 2011 at 8:18

If you are using microsoft exploer 9, you may have a problem, its works with IE8

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Permalink Reply by The_Baron on March 29, 2010 at 8:14

Participation in the Severance tax relief program is optional. A prudent operator would apply, as it could mean millions of extra revenue. For a HA well, (horizontal) the period of the relief program is two years or until payout of the well, whichever occurs first. Only actual expenses are allowed, no estimates or AFE costs. Also the types of expenses allowed are controlled by DNR. This is why you will see the total cost of the well on the report. It probally cost more to actually dril the well but many costs are not allowed to be used towards the severance tax relief, so the cost you see on SONRIS is most likely substantiallly lower than it actually took to drill the well.

Lease related costs, legal fees, SWD's title work, etc. are not allowed.

DNR urges operators to hold the filing of their request until a the operator has a firm cost figure. The severance taxes paid will be reimbursed back to first production if the application is approved.

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Permalink Reply by DrWAVeSport Cd1 on July 11, 2011 at 7:07

Bump...Time for GHShalers to check on Sonris for their wells' LA Severance Tax Relief STATUS. 

My Chk well documentation sent to DNR on February 18, 2011, Approved on February 23, 2011.  Looks like Chk and the LA DNR are all over this one!

Chk filed costs for $7,666,462.87 (to the penny LOL) and My Chk documentation for well costs, have gone from $7,799,822.57 (3Qtr.2010) with unrecovered costs at $4.5Million; to $7,952,659.27(4Qtr.2010) with unrecovered costs at $3.2Million; to $8,055,368.54 (1Qtr. 2011) with unrecoved costs at $1.93Million: "drilling, completing, and equipping" only in "Well Costs."  Remember, operating expenses are included in unrecovered cost #s.     So, I will deduce that Chk Serial Well #240427 reached "Severance Tax Relief" payout around 1Qtr2011, and My Chk documentation will show that Well PAYOUT won't be reached until?????  FYI this well has been producing for one year as of 6/9/2011 @ 2,034,603Mcf thru April 2011.   $389K for title work, legal fees, etc.????????

 

I have a good idea that on Chk's 2Qtr2011 Statements (which won't get out to me until 3-4 weeks after Chk's 2Qtr2011 Conference Call on August 9th...this Well's COSTS will be higher again! and Operating Expenses for 2Qtr2011 will be another $52K+...?????  When Chk was DRILLING & FRACKING this well, Operating Costs for 2Qtr2010 and 3Qtr2011 only totaled $55K....?????

 

From what I can see, NOTHING has been going on at this Well site for the past 6+ Months, just production.  The July 1, 2011 reset of allowable went to 5,337, down from 1/1/2011 allowable of 8,919, down from 8/1/2010 allowable of 16,224.  "80" choke since Sept. 2010.   Too many producing wells, too many wells being drilled, too many wells going on line,  and too low nat gas prices, etc. etc.  And, Chesapeake in TOO MANY PLAYS to recoup more $$$ than they are laying out $$$ for, but they cannot afford to miss out on the OIL plays. 

 

Check out Your Well's LA Severance Tax Relief Status...  Again, looks as though the DNR's APPROVAL time here is done with lightning speed.  I don't know how they had time to even LOOK AT Chk's #s let alone audit or check them.

 

IMO seems to me, Chk can get the paperwork done and processed in record time...when Chk is the beneficiary!

 

and so it goes...still waiting...

 

DrWAVeSport Cd1  July 11,2011

Attachments:

• 07-11-2011 10;51;16AM.pdf, 2.1 MB

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Permalink Reply by The_Baron on July 11, 2011 at 8:12

1) Not all the costs associated with this well can used for severance tax relief.

    there will be additional operational costs billed to the WI and UMI who are involved.

 2) My experiance w/ CHk shows many costs won't be billed to the interest owners until several months later, so hang on.

 

3) And your right, when CHK wants something done, they crank it out quick

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Permalink Reply by DrWAVeSport Cd1 on July 11, 2011 at 8:33

Baron,

 

I agree with you.  But, come on.  $389K "additionals?"

 

attached file:  The LA Severance Tax Relief Program Cost Statement...For Wells

Attachments:

• Form-STRP-WCS-Instr.pdf, 243 KB

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Permalink Reply by Parkdota on July 11, 2011 at 9:51

DrWavesport, are they going to subtract the $389k from your earnings?  Also, can you write off anything pertaining to severance tax relief program?

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Permalink Reply by The_Baron on July 11, 2011 at 10:22

The Severance tax relief is good for everyone, including the RI. The money saved in severance tax payments will be significant.

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Permalink Reply by The_Baron on July 11, 2011 at 10:23

Hate to break it to you, but there will be more. Just wait.

 

The Sev. Tax releif is actually very restrictive on what can be claimed, there will be substantial costs that will be billed onto the WI owners.

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Permalink Reply by DrWAVeSport Cd1 on July 11, 2011 at 10:54

Baron,

 

With Chk,  How did I not know that???  (LOL)  However, looks like to me everything but the kitchen sink is allowed per LA two year/well payout exemption program.

 

Thanks for confirmation.

 

DrWAVeSport Cd1 7/11/2011

 

 

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